Decisioning and Consumables

A consumable is something that is capable of being consumed. It may be destroyed, dissipated, wasted, or spent. Consumables are products that consumers buy recurrently, i.e., items which "get used up" or discarded. This dilemma is increasing in importance in the everyday life of many of us. It could be a decisioning issue that might be easily ignored or overlooked.

Consumable office supplies are products such as paper, pens, file folders, post-it notes, computer disks, and toner or ink cartridges. For arc welding one uses a consumable electrode. This is an electrode that conducts electricity to the arc but also melts into the weld as a filler metal and needs to be replaced.

Another example is consumable or disposable products associated with the preparation or presentation of serving food which includes but is not limited to plastic, foam, paper goods and cleaning supplies.

Consumables in the Market

Because of their consistency of usage, stocks of companies that make consumables are considered to be relative safe harbors for equity investors when the economy shows signs of weakness. The reasoning is simple: people will always need to purchase groceries, clothes and gas no matter what is going on in the broad economy.

Many of the items measured in the basket of goods used to calculate the Consumer Price Index (CPI) are consumables; inflation in these items is closely watched because it can lower the discretionary income people have to spend on items such as cars, vacations and entertainment.

On a personal level (where we live), the simple decision to become more aware and responsible in the consumable area can pay personal dividends. In all, consumables will play an increasingly viable role in our economy.

Voluntary Simplicity

Combating the costs of our disposable society is a major challenge, but there are ways to fight back. The Amish, for example, are the most visible representatives of a modern-day voluntary simplicity movement. They substitute conveniences and luxury items in favor of a simpler style of living. Considering that you may not be Amish, there are steps you can take to minimize your involvement in our consumable centered society and, in the process, strengthen your own personal financial situation.

A few of these easy methods include:

Buy durable goods whenever possible…not always the lowest cost but could greatly reduce your consumable costs over time.

Stop style-driven purchases. If it's a choice between cheap stuff that will need to be replaced or better items that will last, spend the extra dollars in the short term to save money over the long run. From a style perspective, wearing your grandmother's hand-me-downs may not be practical, but trading in your cell phone or MP3 player for no better reason than that it is new is not only unnecessary, it's also expensive.

Recycle whenever possible. To reduce your personal impact on the environment, consider recycling. Everything from newspaper to toner cartridges can be reused. Also, think about donating old eyeglasses, cell phones and computers instead of just throwing them away.

If you have the conditions, grow your own garden. This will cut down on your trips to the grocery store, saving money on both gas and food cost.

Think efficiency. Using low-flow shower heads, compact fluorescent light bulbs and other energy-efficient devices, etc. will help your budget in addition to the environment.

Use the most practical transportation possible. If you drive, consider a fuel-efficient car. Carpooling is another good way to reduce both the financial and environmental impacts of traveling. In some cities, public transportation makes perfect cents.

Downsize where you can. You may like the 4x4 gas-guzzling monster truck you've been driving to the mall, and you may like the convenience of buying precooked dinners in bulk, but the excess money and material costs going into these purchases will have a huge impact on your bottom line. In this respect, the financial experts say the biggest one-time choice you can make is to consider downsizing your living quarters.

Get Started Today

The sum decision, avoid runaway spending. Forget about owning the latest styles, biggest houses or flashiest cars. Make financial decisioning (under the heading of consumables) one of your top priorities. In these economic times, your check book will greatly appreciate it.

For full article and credits:

http://www.investopedia.com/articles/pf/07/disposablesociety.asp