So back in December when I was writing about managing my debt with an entry-level salary, I presented to you this overly simplified budget pie from Gail Vaz-Oxlade that supposedly depicts how one's spending should be split when making a budget.
The percentages seems to make perfect sense, right?
Yet, I ran into a problem when I was making my own calculations on how my own budget fits into the pie and it relates directly to the other bills I pay monthly. That is to say, where the heck does cable, cell and internet fit into this magic pie?
Personally, when I build my monthly budget and calculate out my costs, I treat them as if they are household costs, that is to say, they are static and required month-over-month. Which given that I get billed for their services every month, they kind of are. And it is from there that I calculate the remainder of my budget freely.
But they're not required spending, really. There is a valid argument to make that these three items are discretionary pieces of my spending in that I can hypothetically live without them if I really needed to and therefore should be categorized under the Life piece of the pie and not the housing piece of the pie.
Which doesn't make me terribly pleased because it pushes my life pie piece closer to 35% of my monthly budget than I would otherwise like.
Then again, that's why this is an oversimplified pie.
Firstly, I will fully admit that cable is absolutely an entertainment expenditure on my part and firmly a part of the Life pie whether I like it being there or not. I've fully accepted that reality and have made my peace with the costs of paying for it. So there really is no argument from me on that front, especially since I'm the only one paying for it.
And the internet? While it can be a discretionary cost in most homes, the truth is the case is not to be made in the one I live in. My roommates all chip in a percentage of their rent costs to pay for our internet bill every month, making it in reality, a household cost and therefore a required piece of spending. I could certainly make a case to opt out and forcing my roommates to cover my portion of the bill... but then that would not be even a little fair if I then turn around and use up bandwidth.
As for my cell phone... I would like to make an argument that it is required spending these days given that the unit I live in has no landline.
Yes, I'm the only one carrying the cost of my cell phone, same as my roommates carrying theirs, and in many ways owning a personal cellphone is a luxury and is not as important as food on the table, roof over my head and heat to keep me from freezing to death. But in the same breath, it allows me to keep all those things available to me because it partakes in my ability to make the money, particularly extra money, much like transportation does.
Which is why I personally choose that it goes into Household costs. Simply because I value it about as much as I value my transportation costs month over month. It may be more entertainment than utility these days, but it's still my primary method of direct communication as well and remains an important part of my job.
It is now hard to fathom a life not too long ago when computers, internet and cell phones were actual luxuries and that we as a society once functioned just fine without any of that stuff on hand. Oh how simple life once was, I guess.

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