Luxury Budget

The luxury budget is a very simple, fundamental thing we can do to start living simply.  Be it resolved that God does in fact want to bless us with good things which we can enjoy, the luxury budget puts a cap on it.

Here's how it works.  Suppose you say that you will only spend $100/month on luxuries. On the one hand that's a lot of money!  I mean, you could almost sponsor 3 kids each month for that amount!  But why not start with a discipline which is attainable, and then raise the bar once we can manage it?

First off, the luxury budget will force you to re-evaluate your purchasing habits.  Each time you want to buy a new article of clothing, say, you'll have to ask yourself- is this a necessity, or a luxury?  If the article is a luxury, then you take it out of your luxury budget.  If it is a necessity, you have to ask the question-  could I get this thing cheaper at another store, or even second hand?  Pray about these decisions. It may be that in your line of work you are expected to dress at a certain level- which would suggest that an expensive shirt is a necessity.  But if you can make due with a $5 second hand shirt, but you choose the $40 new shirt... well take the $35 from your luxury budget.

This process of evaluating your purchases will help you form your conscience, and become more aware of whether you are being selfish in your purchases. As Pope Benedict XVI wrote in Caritas in Veritate "It is good for people to realize that purchasing is always a moral- and not simply economic - act."

Secondly, the luxury budget will free up money which you can then spend on real necessities-  like paying down debts, saving, and giving to the poor.  Another conscience forming exercise which you will have to go through is figuring out which rate to do these things in.

Sound easy?  It is!  At first...  but just wait until your couch wears out, or you want to replace your carpets, or go skiing. You will have to discern- is a new couch really a necessity, or a luxury? How many months of luxury budget do you want to give up in order to buy it?  Can you justify your family vacation as a necessity?

You may find that you can. Remember the principal is that the money is not ours, but Gods.  We must be good stewards.  If you discern with your informed conscience that God would have you go on vacation with your family, then go!  Enjoy God's abundant blessings!  But the luxury budget will force you to discern, rather than just treating the money like it's yours and the vacation like you have a right to it.

If you are serious about living in accordance with Church teaching on money and care for the poor, the luxury budget is the best place to start!