Here's a quarter, call someone who cares
Do you remember times when you always ensured you had a quarter on you?
If ever you found yourself in an emergency or needed to call home, you had that trusty quarter on you to save the day.
Phone booths were everywhere. Mom had drilled it into your head at which doors or neighborhoods it would be fine to knock on should you have needed to ask for help or to call home.
Today, you would be hard pressed to find a phone booth, let alone find a Block Parent sign.
We talk about the rate of inflation, whereby our basic costs increase. What we never take into consideration are the choices we make as consumers which cause our budgets to inflate.
What was once more of a luxury is now considered by most a necessity.
As gadget hungry consumers, we have caused this inflation in our household budgets. The increase in the cost of oil or the global economy is not to blame.
Companies with smart marketing campaigns have convinced us we need these communication gadgets in order to survive.
We have been sold on this new world of needing gadgets to communicate. The long term overall impact to our financial situation is not taken into consideration.
Ask yourself the following questions: How much are you spending on these gadgets? How many are in your household? Do you need one for work?
Do you need one to survive? Did you live well before without a cell phone? Are you making the cell phone payment a priority over other life necessities?
The average monthly cell phone plan in Canada is over $50 a month, provided a lengthy contract for service is respected.
If you were to decide at any time not to keep the phone or to change service plans, you would have to pay out the entire contract, which will probably cost you a few hundred dollars.
Bear in mind, as well, that while basic monthly service is attractively priced, your average cell phone bill may be nowhere near the amount you were sold when you first started the plan.
Over a year your cell phone will cost you a minimum of $600. This is on top of the cost of a house phone.
Is this equivalent to one or two months' groceries or the cost of getting the kids ready for school? Could this money have been spent in a more lasting way?
Is it truly a need or a want? Only you can make the choice and rationalize the expense.
Should your financial situation feel overwhelming as a result of choices you have made, please seek the help of a financial advisor.
* Andrea Mailman is a financial advisor specializing in debt restructuring with the Moncton office of PricewaterhouseCoopers.
Utilizing her experience in banking and working with debtors, she assists people to address and deal with their financial challenges.
Andrea can be reached at 859-8822 or by e-mail at andrea.j.mailman@ca.pwc.com.
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