
NOTE: This is still a post in progress. I only spent about 30 minutes on this one....I need to add items and more explanations.
I’ve been thinking a great deal about moral obligations and money. This post will be the first of a series of posts dealing with money and ethics.
What ethical responsibilities, if any, do we have regarding spending money? If we have an excess amount of money, are we morally obligated to give this money to charities of our choices if we can comfortably afford to? Shall we spend money on unneeded items? How much money is permissible to spend on unneeded items?
I don’t think that we should be paupers in the extreme sense or give ALL of our extra money to charitable causes and people in need. Live comfortably, be entertained, build capital, and give to charitable causes without exhausting yourself in any of the fours areas mentioned.
After reading Peter Singer’s The Life You Can Save, I started to really think about my money, how I spend it, and what I can do to maximize my capital, minimize spending, and continue to live a good life.
Some of us have a great deal of excess money (money in addition to what we need, at a minimum, to pay our needed bills, survive, and buy basic foodstuffs) and choose to spend it on items that we don’t really need such as fancy shoes, expensive bathingsuits, cologne, bottled water (!), take-out food, fast food, etc.
What is the minimum we need to spend in order to live comfortably?
To live comfortably, I’d propose that we need deodorant, inexpensive clothing, shelter, bedding items, toothbrush, toothpaste, shampoo, soap, running water (for showering/bathing and to drink), basic non-expensive food (shop at a discount grocery store or get food in an inexpensive fashion. After this, people need to pay taxes (unless you don’t work), pay for car insurance, gas, and car maintenance (unless you don’t drive and own a car), pay monthly bills for internet, cell phone, television, etc (this perhaps aren’t needed and you might not pay for all three…but I’ll discuss that later), and pay tuition for school/student loans (you may not attend school). It’s very possible that I left stuff out, of course. If you’re a parent or caretaker, you need to provide for children in your care……
It’s very easy for us to devise a minimum budget where “unneeded spending” is put to a minimum. We don’t need to buy bottled drinks, fast-food, expensive food, dine out, have that expensive cell phone, text, have unlimited minutes, etc. We don’t need to go to concerts, go drinking, etc. At a minimum, we can pay our living expenses, have little to no entertainment that costs anything, start giving to charitable organizations, and build capital.
Although I sought to spend money only for “living,” I realized that this was personally impossible, but I was able to really think about what I spend and spent a minimum amount of money on entertainment and non-needed items.
Here are some expenditures we can really cut that make a tremendous difference:
Bottled Water/Drinks
I think that bottled water is a tremendous waste of money that adds up very quickly. An average bottle of water is approx. $1.25. Other bottled drinks may be more expensive ranging from $1.50 to $3-4. If you’re home, there is no need to buy bottled water…just get it out of your sink. If you still would like to drink something other than water, buy no-name brand two or three liter bottles of soda. Personally, I think tea bags are a very cheap alternative to drinks. I can make cold or hot tea with tea bags and they are very cheap. I buy about 100 tea bags for about $1.50.
Drinks/Coffee that you don’t make
Buying drinks that you don’t make can also be very expensive. Coffee or tea made at home is few pennies, but coffee or tea typically ranges from $1.25 to $4-$5.
Drinks you order when you eat out
This is almost certainly one of my biggest pet peeves. Every time I do go to a restaurant, I order water from the fountain/tap. Why spend $1.50+ when I can get a drink for free? What’s even worse is when people order bottled water when they are eating-in. Get free water and drink it. If you’re not going to stay in the restaurant and to-go containers are available, get water.
Take-Out Food, Dining Out
Take-out food and dining out can be very costly. I purchase take-out food one day a week and spend less than seven dollars on Chinese food. Some people may order Domino’s, Chinese, go to Sheetz, dine at a restaurant, and spend close to 70 dollars or more a week! Imagine that you spend fifteen dollars on pizza, twenty on Chinese, buy three coffees (~5 dollars), dine out for a total of thirty dollars, and finally purchase drinks in all situations totaling ten more dollars…you spent eighty dollars in one week on top of normal food expenses! This could have been avoided very easily.
A minimum food plan, I think is spending forty dollars a month on basic food. I spend about fifty a month on take-out, fast food, and dining out (though this number is not always the same…I want to reduce it, too.) I’ve been doing this for about three months and have been satisfied. You can go to a local non-expensive food store and purchase bagels and cream cheese for breakfast, ramen noodles for lunch and/or dinner, cheap frozen items like pot pies and burritos, hot dogs and bread (not buns), and rice.
Alcohol
Many like it, sure, but it’s not needed. You can, of course, spend money on alcohol, but limit it if you want to save money. Drink water and tea.
Expensive Food
It’s very easy to buy brand name items, expensive meats, expensive cereal, etc. Avoid this and buy inexpensive food.
Cell Phone Bills
As much as I hate cell phones, I finally caved in and purchased one. I was fine with a home phone for a while, but I arrived at many situations where I needed to talk to people when I wasn’t home to coordinate rides, find people, chat in between classes, etc. Do you really need internet, texting, unlimited minutes, and other items on your cell phone bill though? I have a minimum family plan with one other person and we both spend about $40 a month for 700 shared minutes. I suppose family plans with unlimited minutes, texting, etc can really be cheap if you have many people on the plan..and that may be the way to go. Cut the costs of cell phone bills.
Internet Bills
Purchasing the minimum high-speed plan is a good idea, but you don’t need the ultra-fast connection.
Candy
This can be very expensive. A great deal of money can be spent on candy, gum, mints, etc.
Here are some “unneeded items” that I feel are justified in spending money on:
Minimum cell phone bills
Internet services
Books
Ah, the joy of learning! Inexpensive books can offer you a wealth of information, entertain you, and help you re-think life. Reading is a great thing.
Subscriptions
Cheap subscriptions to magazines, good online services, and other things can be cheap and very worthwhile.
Inexpensive Vacations/Conventions/Trips
You need to take a break once in a while. Spend minimum money when doing so and have fun!
Television
Basic cable can be a good thing, but I’m not a TV watcher. I get almost all of my news online and watch some TV shows online (Colbert Report, The Daily Show, South Park, and The Atheist Experience).
Video Games/Movies/DVDs/Music
Entertainment is good, but don’t go overboard. It’s very easy to purchase many DVDs, CDs, movie tickets, or games, but try to limit yourself.
When looking at all of the money you can spend in a month or a week, it’s very surprising and scary. My conclusion is that we can save a great deal of money and build capital while still having fun, spending “extra money,” giving to charity, and living a comfortable life.
A great threat to spending minimal amounts of money is conveinance... it gets the best of us.
In my next blog post I’ll discuss the ethical obligations we have regarding money involving charity. A big focus of my next post will be individuals and organizations that have a great deal of extra money but don’t spend it. I will argue, particularly, that the Vatican and rich individuals have ethical obligations to donate money to charitable causes to help others.