I’m a Financial Planning Expert: Never Prioritize These Five Expenses Over Paying Bills
Written by
Laura Bogart
Edited by
Rebekah Evans
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
One of the most common pieces of financial advice is that sometimes, you have to give yourself a little leeway in your spending. That being too strict can create an internal backlash that leads you to overspend. However, you have to be careful not to give yourself too much leeway — especially when it comes to making sure that essential bills are covered.
While you don’t want to feel completely restricted in life, there are some expenses you should absolutely put on the back burner until your bills have been paid. To get a sense of which expenses are expendable, GOBankingRates talked to financial planners and experts.
Luxury Vacations
As Mother Nature perks up after a long winter, you might start daydreaming about excursions to the beach. But as you search out waterfront hotels, are you making sure the lights stay on in your own home by paying your electric bill?
While leisure time is important for your emotional health and well-being, you might want to consider putting a hold on luxury retreats if your basics aren’t covered. However, according to Jeff Mandel, CEO of Credit and Debt, if you don’t have the money available for a luxury vacation, you still have options for a more affordable getaway.
If your heart is set on a specific kind of vacation, you can always put it on hold until you have the budget for it. You could also plan a trip that reduces your expenses by staying at an Airbnb instead of a hotel, driving instead of flying or even reducing the number of nights in your stay.
If you’re an active person, you could also focus your vacation around activities like hiking or camping, which are typically not as expensive.
Spotify
While Spotify might get you through many a workout or the workday, you shouldn’t pay for an ad-free subscription before your other bills.
To save money without losing your favorite tunes, Mandel suggested looking at whether your phone plan, credit card or other services might give you access to an alternative music service — at no additional costs. For instance, phone plans through Verizon offer Apple Music to users without further fees.
Cable TV
In the age where most of the TV series worthy of watercooler — or Zoom room — discussions appear on streaming services, there’s no good reason to keep your cable.
Mandel said that, when considering expenses around your TV viewing, you can potentially switch to streamers like YouTube TV or Hulu, which may be a third of the cost of conventional cable.
Fancy New Electronics
The sight of friends and family with the latest iPhone or smartwatch may provoke mouth-watering jealousy, but dipping into your grocery funds to keep up with the latest electronics can leave you financially lean in the long term.
Hazel Secco, certified financial planner (CFP), certified divorce financial analyst (CDFA), president and founder of Align Financial Solutions, LLC, advised against upgrading your phone or other electronics just to follow trends, at the expense of your broader budget.
“While installment payment options may make new electronic devices seem manageable, they can still represent a significant expense in the long run,” she said. “It’s crucial to differentiate between needs and wants and to avoid spending simply to follow others.”
Spa Days and Beauty Treatments
Financial well-being, like true beauty, goes skin-deep: You have to think beyond fleeting pleasures or appearances to keep your best face forward, financially.
That’s why Secco cautioned people against prioritizing beauty-related services and products, like salon visits, hair treatments and beauty projects over their bills and other essential expenses.
“While these expenses may seem appealing, they are discretionary and can be avoided or reduced,” she said. “Beauty-related spending can quickly add up and the desire for more can lead to never-ending expenditures. It’s essential to prioritize spending on things that bring ultimate happiness and fulfillment, rather than temporary indulgences.”
More From GOBankingRates
