Who doesn’t want to make their lives easier? With everything from groceries delivered to your doorstep to mobile dog grooming services to a monthly curated clothing subscription can save time and enhance our day-to-day existence.
However, there’s a price to pay for convenience. A recent survey by CouponFollow finds that U.S. consumers spend about $150 a month, or $1,800 a year, on convenience-centric purchases. What’s more, nearly half (47%) expressed that these habits don’t feel financially sustainable.
As you can see, spending on monthly subscriptions, delivery fees, and the added cost of pre-cut veggies can rack up quickly and bust your budget. Or, that’s money that could be better spent elsewhere.
Here, we’ll walk you through when it’s worth paying for time saved, when it might be better not to, and how to strike a balance between the two.
When paying for convenience is worth it
It adds value to your life
Sure, those food delivery subscriptions, fees, and tips can add up. And you’ll need to mind the convenience tax of mobile dog grooming service, which means the total price tag for your annual pet care will be higher.
While these do increase your living expenses, if it adds value and enjoyment to your life, or reduces stress, then it could be worth the extra costs.
While it largely depends on your unique preferences and lifestyle, per the CouponFollow survey, the five convenience purchases that are deemed most worth are streaming or entertainment subscriptions, same-day shipping, curbside or drive-up orders, grocery delivery, and food delivery.
It frees up time for other opportunities
If you are crunched for time on a work project, spending money on food delivery or prepackaged meals can be worth it. Or, maybe you have a business opportunity and need to focus on that, and would rather spend money on a housecleaning service than devote a Saturday to get your house spick and span.
If the ROI on convenience spending is greater than the money you spent to save you time, hassle, or stress. Plus, it frees up time so that you can focus on these new endeavors, which can potentially increase your income and overall financial well-being.
These opportunities don’t necessarily have to equal money. Maybe you would rather not spend an hour grocery shopping, and instead indulge in your hobbies, time spent with loved ones, be a more attentive parent, or invest in a passion project. That’s entirely fair game and a fair justification for swallowing up that convenience tax.
You have a medical necessity
Last year I was bitten by a neighbor’s cat on both feet. It resulted in a bad infection and limited mobility. Because I couldn’t walk or drive, I was resigned to ordering groceries and restaurant takeout on a food delivery app and used rideshare as needed. And while I did ask family, friends, and neighbors for rides to follow-up visits to the doctor and grocery runs, I didn’t want to overdo it with the favor-asking.
Tapping into food delivery and rideshare apps were pricey, but at the time, it was worth it because, well, I didn’t have much choice. If you have limited mobility or are working through a medical ailment, it might be worth it to, say, have your prescription drugs delivered to your home.
You save in the long run
This might seem like a head-scratcher, but hear me out. In some cases, the cost of convenience may be offset by saving you some cash.
For example, sometimes I’ll pay for the extra cost of curbside pickup because I won’t be tempted by impulse buys when stepping foot inside a store. That’s often the case when I’m at my favorite craft supply store or discount retailer, where the “thrill of a deal” can get the better of me.
Another way that the convenience tax has served me financially in the long run? I admit, I am guilty of occasionally buying the pre-cut veggies. That said, it spares me from ordering takeout or dining out, which can cost a lot more.
Also, if the cost of convenience helps you save on expensive mistakes, it can definitely be worth it. For example, having a professional do your taxes versus trying to do them yourself.
When paying for convenience isn’t worth it
Let’s look at some scenarios where the price tag of convenience just isn’t worth it:
You regret your purchases
Per the CouponFollow survey, it turns out that 46% of survey respondents said they feel they’re overpaying for convenience, and 3 out of 4 feel regret or guilt for things they could have done themselves.
As Marie Kondo would say: If it doesn’t bring you joy, get rid of it. If you end up feeling a tinge of the ills, whether that be remorse or shame, you might want to think twice about that convenience purchase.
Along the same lines, you might give in to compulsion and engage in “emotional spending” and go on a click-happy frenzy, resulting in ordering fast-food via a food delivery app when you’re feeling stressed, bored, lonely, or empty.
You aren’t getting value from your spending
Think of those sandals you impulse-bought online, or the boxes you paid for next-day shipping, only to find them forgotten in a corner. In an era where it’s far too easy to impulse buy to feel good in the moment, you might spend money on items that no longer offer you value, joy, or use.
While it’s convenient to stock your fridge and pantry with instant food delivery, you might end up feeling more empty and resort to more convenient purchases. The cycle may continue.
It’s cutting into your financial goals
This might sound obvious, but if you simply can’t afford to pay extra for convenience, it’s probably time to sit down and reassess your budget and spending habits. And maybe it’s not digging into your budget, but you don’t have much left over to put toward your emergency fund or toward your other financial goals. In that case, it’s hurting Future You.
How to balance spending for convenience versus saving
It certainly doesn’t need to be all or nothing. Here’s how you can strike a balance between convenience spending and saving:
- Look for free subscriptions and credit from credit cards. A credit card might offer you an annual credit on food delivery apps and certain streaming services. On top of that, you might be able to scoop up a monthly credit. Look for rules and restrictions, and make sure it’s an app you already use.
- Make trade-offs. If you truly get value from paying more for convenience, consider making trade-offs in other spending areas. For example, if you are spending, say, $50 a month from placing orders on a food delivery app, see whether you can cut back that much in another spending category.
- Pay yourself first. In other words, squirrel away money toward your savings first. That way, you can work with whatever is left over for your monthly expenses and not fret whether you have enough saved for a rainy day.
- Practice mindful spending. Tune into what’s most important to you by being mindful of where you spend your money. You can refer to a free personal values assessment to narrow in on what’s most important to you. Also consider journaling or vision boarding.
They say that time is money, but time is much more than that. Time is the potential to shape our lives based on our values. By deciding whether the cost of convenience might be worth it, you can make better choices for your wallet.
FAQs
Is convenience worth paying extra for?
It depends. If it frees up time, bandwidth, mental capacity and spares you hassle and stress, it could be worth paying extra for. You’ll want to be careful not to pay for convenience when you really can’t afford to financially or if you’re not getting much value from doing so.
What does the cost of convenience mean?
This is when you spend for convenience, such as streaming subscriptions, delivery boxes, next-day shipping, on-demand services, prepackaged meals or ordering through food delivery apps. While they can save you time and hassle, the extra cost can add up quickly.
What are the big three expenses?
The big three expenses are housing, transportation, and food. Per data from the U.S. Bureau of Labor Statistics, housing and transportation alone make up 50% of household spending.
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