BUDGETINGLIFESTYLE & TRAVEL

The Real Cost of Convenience

In the past few years, technology has progressed, leading to increased convenience for consumers. This has resulted in certain spending habits that can secretly sabotage your financial health over a period of time. Convenience within your finances is not a bad thing but it’s important to keep an eye on what benefits you and what could be negatively impacting you.

Convenience Economy

This concept can be described as the purchasing of a product or service that focuses on prioritizing speed and ease. This can include rideshares, subscriptions and even food delivery services. The reason these items tend to appeal to consumers is they save time. And the added bonus of instant gratification can make purchasing for convenience even more appealing. Did you know the average food delivery app user spent just over $1,500 in 2024? When you think about that dollar amount, the convenience economy may not sound too appetizing.

Regain Control

It’s possible to regain control without sacrificing convenience. Let’s discuss a few ways to accomplish this.

• Track current spending habits. Note your common convenience costs over a week to see what you spend the most on and determine if you can limit convenience expenses moving forward.
• Set spending limits. Create a lifestyle buffer that allows you to work within a budget to keep yourself from falling off track.
• Consider needs and wants before a purchase. Make a habit of evaluating a product or service before completing a purchase to see if convenience outweighs the cost.
• Explore value-based swaps. After tracking your current spending habits, identifying actual needs and creating spending limits, search for purchases to reduce unnecessary spending (i.e., making your coffee at home).
• Automate your savings. Set up automatic, recurring transfers to your savings to make saving more convenient.

Creating a life of convenience for yourself is not a bad thing. However, it’s important to keep in mind that unconscious spending can be costly. Set a goal to start tracking your current spending habits to understand how much you’re spending to make things easier for yourself. It might surprise you how much you’ve spent already! A life of financial ease might require short-term inconvenience, but this can lead to long-term peace of mind when it comes to your finances. Make the changes today for an even better future!

Sources:

https://www.forbes.com/sites/forbesfinancecouncil/2018/03/12/the-age-of-convenience-its-more-than-we-can-afford/

https://www.statista.com/topics/3294/online-food-delivery-services-in-the-us/#topicOverview