Luxury vs. Necessity

[JustMeJaneD]

[Flamingo]

Necessity - you need to survive.
Luxury - you don't need.

[JustMeJaneD]

Necessity - you need to survive.
Luxury - you don't need.

That was were I started with this....which means that when you get right down to it everything is pretty much a luxury?

[jktrading]

Buying new shoes and clothes if you really need them is all I see as necessity on your list. "Needed" food at the market, rent/mortgage, "needed" clothing items, and gas to go to work are the only things I see as necessity.

[momof5]

Hi Jane!

Probably the most valuable thing I have learned through this whole process is the difference between luxury and necessity. While I know there are guidelines to follow before filing and discharge but I mean the real life difference. What I used to think was a need turns out was just a need while I had unlimited use of credit cards. I have saved a fortune lately!

What I did in order to wean myself was only carry cash for a few weeks. If I could justify parting with those green bills in my wallet then it was a need. if I had a hard time with it then it was a luxury. Starbucks for example... white chocolate Carmel machiotto(i know I messed up that spelling bad). My all time favorite treat! At $7 a pop I gave it up at least weekly. I now treat myself to the local gas stations cinnamon hazelnut at $.79.. I save nearly $20 a week.

okay so it may sound a bit goofy and probably not what you were really asking but its my silly example of figuring out the difference. Now as far as luxury items being purchased in regards to bankruptcy... I think Flamingo summed that up perfect.

Edit to add: I think for those of us with children, entertainment is a NEED! I would be hiding in a closet somewhere if I could provide no entertainment this summer for my kids. Only 31 more days till school!!! <-------- thats how many days till sanity!

[liz417]

Hi Jane!

Probably the most valuable thing I have learned through this whole process is the difference between luxury and necessity. While I know there are guidelines to follow before filing and discharge but I mean the real life difference. What I used to think was a need turns out was just a need while I had unlimited use of credit cards. I have saved a fortune lately!

What I did in order to wean myself was only carry cash for a few weeks. If I could justify parting with those green bills in my wallet then it was a need. if I had a hard time with it then it was a luxury. Starbucks for example... white chocolate Carmel machiotto(i know I messed up that spelling bad). My all time favorite treat! At $7 a pop I gave it up at least weekly. I now treat myself to the local gas stations cinnamon hazelnut at $.79.. I save nearly $20 a week.

okay so it may sound a bit goofy and probably not what you were really asking but its my silly example of figuring out the difference. Now as far as luxury items being purchased in regards to bankruptcy... I think Flamingo summed that up perfect.

Edit to add: I think for those of us with children, entertainment is a NEED! I would be hiding in a closet somewhere if I could provide no entertainment this summer for my kids. Only 31 more days till school!!! <-------- thats how many days till sanity!

I think everyone is starting to realize that Starbucks isn't a necessity...that's why they are closing stores and laying off workers...yes, I love my Venti Vanilla Latte, but as Momof5 so wisely put it...now that we are living on a cash-only basis, it's hard to part with that $5!!! It's gas station coffee for me too...for only $1.39, it's actually not that bad! Hey, I read on this forum that Mc Donalds has FREE COFFEE on Mondays! Call to make sure your local McD does this first!

[chloe0724]

I too realized Starbucks is a treat, not a nessecity. I did buy a bottle of their sugar free suyrp, $6.99, and a battery powered frother, $19.99, and now make my own lates at home. They are just as good!!!

[fltoo]

Depends.

I have never even been in a Starbucks because of the prices, lol. I make coffee at home and put it in a travel cup.

Yet, I "need" a Mercedes for my job. I always buy used because the bodies don't really change much.

[liz417]

I too realized Starbucks is a treat, not a nessecity. I did buy a bottle of their sugar free suyrp, $6.99, and a battery powered frother, $19.99, and now make my own lates at home. They are just as good!!!

Oh, thanks for the tip...I'll have to try it!

[liz417]

Depends.

I have never even been in a Starbucks because of the prices, lol. I make coffee at home and put it in a travel cup.

Yet, I "need" a Mercedes for my job. I always buy used because the bodies don't really change much.

NEVER???? My gosh, I think you are the only person out there who hasn't been to a Starbuck! I think we need a new thread....

[JustMeJaneD]

Okay...starbucks might not have been the best example, but thanks for the input...its harder than it sounds to figure out...especially when it comes to recreational things and things for the kids....ie...getting a bike fixed, getting ice cream, buying birthday presents...etc

We don't own what are most often considered luxury items -no boats, or rec vehicles jewlry art etc....and we don't go on expensive trips...we both purchased used cars that are now 5+yrs old and our home is nothing fancy (and in need of a bunch of work) We had savings until we had to start living off of it. So its hard to see sometimes how we could be in so far over our heads so quickly. I guess a 75% reduction in income and really bad non-paying tennants will do that...lol.

[liz417]

Okay...starbucks might not have been the best example, but thanks for the input...its harder than it sounds to figure out...especially when it comes to recreational things and things for the kids....ie...getting a bike fixed, getting ice cream, buying birthday presents...etc

We don't own what are most often considered luxury items -no boats, or rec vehicles jewlry art etc....and we don't go on expensive trips...we both purchased used cars that are now 5+yrs old and our home is nothing fancy (and in need of a bunch of work) We had savings until we had to start living off of it. So its hard to see sometimes how we could be in so far over our heads so quickly. I guess a 75% reduction in income and really bad non-paying tennants will do that...lol.

I know, we got a little off the subject once Starbucks was mentioned (Yum!). Anyway, a chapter 13 plan does allow for the items you listed. You'll have to check the IRS standards for your state and on the forms that I filled out, it had sections for: clothing, entertainment (small, but there), personal care (hair cuts), subscriptions and "others" (which you fill in). This is not to say that your trustee is going to accept your numbers, but being in a ch 13 is NOT suppose to be a prison sentence...just a sensible budget.
We don't own any "extras" like a big screen tv, fancy jewerly or a boat, just boring everyday stuff....
If you are going into a ch 13 plan, know that you'll be in the plan for 36-60 months and plan your BK. My attorney "recommended" that I purchase a reliable newer car because my car was 13 years old and had over 240k miles on it.

You'll be fine and good luck to you!

[Cali]

SB's is a necessity for me.

I think everyone is starting to realize that Starbucks isn't a necessity...that's why they are closing stores and laying off workers...yes, I love my Venti Vanilla Latte, but as Momof5 so wisely put it...now that we are living on a cash-only basis, it's hard to part with that $5!!! It's gas station coffee for me too...for only $1.39, it's actually not that bad! Hey, I read on this forum that Mc Donalds has FREE COFFEE on Mondays! Call to make sure your local McD does this first!

[hnhlvr]

Hi Jane!


Edit to add: I think for those of us with children, entertainment is a NEED! I would be hiding in a closet somewhere if I could provide no entertainment this summer for my kids. Only 31 more days till school!!! <-------- thats how many days till sanity!

I agree that entertainment is a need. Sanity is a need and part of remaining sane is seeing movies. I mean, come on. Not EVER going to a movie????

See one during the day as they are cheaper and bring your own snacks and enjoy a bit of life!

I'm not even going to comment on Starbucks. That is a given.

[fltoo]

Ok, we might need a new thread started again.

Last movie I saw in the theater was Star Wars. 1970 or 80 something.

I don't even know.