Comments on: When is it Okay to Spend Money?

By: The Carnival Of Personal Finance (#126) | Million Dollar Journey

The Carnival Of Personal Finance (#126) | Million Dollar Journey — Mon, 12 Nov 2007 07:42:23 +0000

[...] When is it Ok to Spend Money? by Finance and Fat [...]

By: Frank

Frank — Fri, 09 Nov 2007 01:11:13 +0000

Well said, dong.

By: dong

dong — Thu, 08 Nov 2007 20:32:54 +0000

I don’t think frugality in itself is virtue, frugality is a virtue only it allows cleaner living or allows you to be more generous to others. Some people get a little too hung up on not spend money, but really saving money is about being able to do other things with that money.

By: Frank

Frank — Wed, 07 Nov 2007 21:35:00 +0000

Hi Dawn, good point on the lifestyle change versus the numbers idea. You are probably right, because I think if I had to pick either the laptop or the debt payment (with a gun to my head or something) I would definitely go with the debt payment.

Basically, I’m choosing the not-so-perfect route, but I am at least doing so with the knowledge of what I am really choosing. We can make a lot of good arguments for why we need the laptop too, so it’s not like I feel bad about it.

I’m not looking for the perfect answer, I am just using this site to figure these things out and document what I learn as I go. You and all the other commenters have been a big help. Thanks!

By: dawn

dawn — Wed, 07 Nov 2007 20:52:07 +0000

Frank – I think your a good guy that is trying hard to do the right thing. I just worry for you that you are focusing on the $ numbers too much and maybe not understanding that it’s a lifestyle change that has to happen.
It’s your money and you and your wife are entitled to spend it on whatever you choose.
I just don’t want to see you prolong your debt repayment to the point that you revert back to old spending ways (that got you into trouble in the first place).
You know in your heart what the right thing to do is, you just need to listen to it.
If you had a child that was in your situation how would you advise them to handle it?
This stuff is so hard, because we are all so different … there is never one solution.

By: Frank

Frank — Wed, 07 Nov 2007 20:14:26 +0000

Well said. I did consider the amount of extra time it will take to get out of debt when looking at the MacBook purchase. That is probably the best way to approach things.

I guess the key is to allow yourself a few of these expenditures, but don’t allow them to pile up and extend your day of debt freedom further and further away.

By: TV Girl

TV Girl — Wed, 07 Nov 2007 16:30:26 +0000

For me, it’s mostly about two things: comfort with debt and maximizing your money.

How comfortable are you with your debt and the length of time you’ll be in debt? The more you spend, the longer you’ll be in debt. Do the math and figure out the difference in time if you spend $100 a month on wants or $50 a month (or whatever numbers you want to use). Are you okay with being in debt that much longer?

Are your purchases maximizing your money? Is the want you’re buying going to bring you enough use and enjoyment to make the price worth it? Cut out the things that have a lower price/enjoyment ratio.

By: Frank

Frank — Wed, 07 Nov 2007 14:32:07 +0000

We are fortunate to have the money coming in this month to cover the purchase with cash. Obviously, this wouldn’t be a consideration if not.

However, that also make me think we should be more wise with the ‘extra’ income and send it toward debt, but then if we are saving up for the computer we will spend the money eventually anyway…who knows, I’m going in circles now.

Good luck getting your camera! You could always add your wishlist to your site and a generous reader might buy it for you.

By: paidtwice

paidtwice — Wed, 07 Nov 2007 14:17:38 +0000

It could work out! It is different when a “want” becomes at least partly a “need”.

Yes you could spend less on the “need” part but then it wouldn’t be as satisfying a purchase and you wouldn’t be as happy with it. We are having the same discussion over a digital camera. ours will die any day now. Because of our much more constrained financial picture (we couldn’t buy an DSLR even if I sold a kidney) we’re having to make choices between things inexpensive enough we think the inlaws might be willing to get us for christmas lol (they always get us some “big” gift even if we don’t ask for one, so better to ask and get something you actually want. heh). But if I had a little more means I would totally be salivating over a Canon Rebel. lol

By: Frank

Frank — Wed, 07 Nov 2007 14:05:41 +0000

@paidtwice – that is a very wise solution.

One reason we want to buy the MacBook soon is that it will make my wife’s life a lot easier right away as she has a lot of work to do and only one computer to use (an old one that can’t even do a lot of what she needs to do).

My thought is to use the purchase of the MacBook as motivation to spend less on our flexible categories, which is the reverse of what you suggested. Much more likely to fail I’m sure, but it could work out.