I spend $99/mo on yoga. Do I worry? No, b/c I also gave up cable TV, expensive rent, and storage prices for storing stuff I don’t need anymore. I also have another vice: eating out twice a week, if I were to cut down to once or twice a month, I’d probably be saving all the money I spend on yoga. Yoga keeps me in shape, keeps my mind sharp, and keeps me sane with the demands of my work schedule. The opposite end of this however is someone who has a gym membership or yoga membership and doesn’t use it….that’s just silly to spend money on if you aren’t going to use it. I recently cut the gym, b/c I like running outside better than running on a treadmill.

Why is spending money on an activity you enjoy that also keeps you in shape a vice? B/c our financial analysts tell us we must work harder for less money and give up all our luxuries that make us happy with our lives in exchange for boosting some fat cat corporations profits? Don’t pay any attention to them, make other cuts first before making cuts in your health.

Many of the things that other commentors have been posting could be seen as virtues rather than vices. As chance would have it, my company runs a blog that explores the wisdom of legendary investor John Templeton and we’re just wrapping up a series of posts on his ideas on “financial vices/virtues” (he loved thinking about things in these terms). Tomorrow (2/23), we’re actually going to be starting a contest about this very idea that is open to anyone who wants to blog about it. There will be cash prizes and the rules will be up tomorrow at the link in my name.

I just really like giving to charity.

I know that I don’t know you at all, but what you are describing is definitely a destructive pattern, not only to your financial situation, but to your relationship as well. As you mentioned, this is more than a vice, it is an addiction.
I don’t want to scare you at all, that’s not the point. I would say that your feeling the need to give to others, even at the detriment of yourself, may stem from an experience from when you were younger. In my line of work (I’m a financial counselor) I run into this often. Try to think back on your experiences from when you were younger. Were there times where it felt like you constantly had to pass on, or go without because of your family’s financial situation? If you go long enough without getting some of the things you want, or experiencing some of the things you like, this leads to deprivation. Deprivation is what happens when you don’t allow yourself, or you aren’t allowed to indulge in the occasional (non destructive) ‘vice’.
This COULD be the reason you spend on others all the time. You don’t want anyone to be deprived because you know what that feels like.
Without spending a good bit of time with you I must leave it up to you to determine.
Good Luck!
Adam thanks for this post. This was very well written.

My vice is donations to charity. I know you will find that entertaining.

I run a small nonprofit and I am constantly siphoning off money that I should be using to pay off loans or something and donating extra money for my charity. It is impossible for me to say no when I hear a story about kids not being able to go to school, or being able to run more nutrition outreaches, or something like that. I also try to pay for all the overhead costs directly so that the organization will have low overhead costs for itself, so I’m spending $$ here and there on printing and office supplies, the organizational newsletter service, the online donation service, the website…

I literally had to confess to my husband a little while ago that the extra money I had been earning had been going towards charity and I was too afraid to tell him because I was supposed to be finishing our emergency fund and saving money to buy us new curtains, I even took money from our emergency fund and promised my husband I’d pay it back, so a very deserving young person could go to school.

It is not only my own charity, but I give every time I am asked by friends or family as well, after all, I am always hitting them up for my charity so it is only fair, plus, I am a sucker for good causes like the environment or cancer research.

My husband forgives me for this vice because he knew I was a bleeding heart when he married me, and he knows it is one of my greatest joys in life to make the world a better place. But still, I am having a hard time keeping control of my money because of this, so even though it seems like the opposite of a vice, I think it is actually closer to a vice than some of the other (static cost, fairly small monthly fees) ones listed. Just this month I’ve already spent like $700. Can anyone offer help for my addiction.

p.s. Baker thanks, your article does help with thoughts about this. And for others who have the same problem… the only thing I have found that is helpful is Kiva, because on Kiva I can keep making ‘donations’ of the money that is paid back on my microloans without actually lending more money. I lend it out in the smallest ($25) increments so that I can make lots of little loans and satisfy some of the desire to give more donations. Other ideas welcome. I cannot donate time, though, I work 80 hours or more per week and spend my ‘spare time’ on the charity already.

For me, when it comes to money, I think the things you buy to do something or the experiences you pay for are a lot easier to excuse. I recently bought a groove box (what you use to make hiphop beats with) for just under $400. That is pricey, but the joy I’ve gotten from trying to learn how to use it, and making music has fulfilled me in a way that buying a bunch of new videogames or books would have (nothing against those things — I love them both).

So yeah, if it fulfills you, spend that dough. That’s how I look at things anyway.

Now I try to borrow books from the library, and I spend less money on gifts.

My new financial indulgence? Seeds, plants, tools, etc for my vegetable garden!

Definitely not a vice. Physical training for a whole family for just a bit more than the mobile phones….bargain.

Look, if you save a ton of money, what the heck are you going to do with it at the end of the day, give it to your alma matter? Save it all up so that at 70 you can finally travel the world.

Keep up the training and you’ll be a lot happier you invested that money when you still are doing the Brazillian JJ when you are 70 and feeling great.

At the end of the day it boils down to mindset; making money, saving money, investing money, and being good stewards of money are all important but so is truly living and enjoying life – being in a position to do the things that you want to do… you only get one shot at it!

One more thing, my vice is ballet classes. But the health and happiness completely outway the price.

Personally, I would consider substituting a less expensive “vice” till my money was in order. Then, I would reward myself with the martial arts training.

To me, the enjoyment would be more fulfilling that way

*my financial vice, eating out too much, does nothing to propel me forward in life and is born of laziness

*my financial vice should have something to do with my life’s ambition–to become a published writer. What can I spend my personal money on to help me on this path (and divert me from squandering my money and health on crap food?)

Lots to think about. Thanks!

Money is only worth the experience it buys!!!!

A great and health and financial victory!

Great post, Baker! I’m glad that you’re settled in at your new temporary home and are taking the opportunity to experience it 100%!

My spending in these two areas balance out my frugality in all other areas of my life.

Thankfully, this is countered by (1) being a cheapskate and (2) getting bored by gambling within 20-30 minutes. Having those triggers keeps me squandering the little nest egg I’ve built.

This past weekend, I wandered into a casino while celebrating my birthday, spent only $40 cash (plus about $30 of the casino’s money) and had a quick blast of fun.

Or, you could agree to designate a certain amount of the monthly budget as discretionary spending, which you each get and can spend without having to answer to your partner. We find it works best if we move this money to separate accounts so we can keep track of what we have without the other needing to know.

My biggest vice is probably buying lunch at work (and soft drink and chocolate). His – I don’t know what his is. I don’t get to see his account

I would however consider buying lunch to be a vice. I often have leftovers in the fridge to bring for lunch, and I also keep a stash of frozen dinners at work. However at least once a week I respond to the lure of the glorious variety of international food carts lurking mere blocks from my office. The food is invariably wonderful, often unhealthy, and though not terribly expensive, it adds up fast. It’s very rare that I have no food and HAVE to eat out; a bit less rare that I go out with someone for social purposes; and yet I still keep going to the carts. Bad for cash and calories.
Any suggestions on how to stop??

I spend on running and triathlons (4 pairs of shoes a year = $600 when you have flat feet, marathon entry fees are upwards of $130, etc). I spend on guitar lessons from time to time. My husband buys records and music online every week or so. We spend money on tickets to see bands we like. We travel often. We go out to brunch with our friends every weekend. We throw parties and cook for everyone. These are the things we like to do and spend our money on. I don’t consider any of them vices because we wouldn’t buy them if we couldn’t afford them.

If I spent money on these things and wasn’t saving, or hadn’t paid down my debt, then they would be vices for sure.

My biggest one used to be ballroom dance classes. But after 20 years, I am now having a one-year moratorium on these classes. I still spend to go out dancing, but not for lessons. I am tired of this being my main way to spend my free time.

So now my biggest one is probably buying some clothes from LLBean without even bothering to look in thrift stores first. I despise looking for pants because apparently I am a weird shape, and this is one company that is still around and not crazy expensive that sells pants in my size.

I also agree that I don’t like the term “vice,” even in this context. Yes, this is something you want rather than something you need (although exercise and sanity are needs). So what? People are allowed to buy things they want. That’s the whole point of paying attention to your finances–quit wasting money on stuff you don’t really care about that much so that you have enough for more important things.

Excellent point on staying away from addictions, and preventing them when possible. I am lucky to have only mild ones, but even just being addicted to sudoku and sugar is worse than having no addictions at all.

Mine:
Shirt Woot – $10 a month
Girl Scout Cookies – $50 a year
Candy – $5 or less a month
Movie Nights and Potlucks w/ friends – $40 a month

My Husband:
Magic: The Gathering cards – $50 a month
Board Games – $150-$200 a year
Video Games/Computer Games – $50 a year after initial investment in consoles that I enjoy too…I love the Wii.

We both used to play D&D, but finding a non-flaky group got too hard. Now we both board game…he just gets into the collecting part and I don’t.

We pay for these habits with the $75 of “fun” money we each get…so far, so good.

I might have to scale back on Shirt Woot to sign up for dance classes, but I’m hoping to find a walking partner again. That was free and fun…same problem as D&D though…people are flaky.