Is that iPad 2 really worth $2000?

[kork13]

WSJ.com article: "Is that iPad 2 really worth $2000?"

I noticed this article and thought immediately of everybody here... it seems like just the line of thought many of us might take. However, my question is just that -- Who actually considers future value of money spent today? Do you look at an altogether frivolous purchase (computer/gadget, new shoes, or whatever else strikes your fancy) in terms of what the cost of the item will prevent you from having in retirement?

Personally, I don't. In fairness, I speak from the perspective of one who is fairly comfortable financially... But I'm coming more and more to think of money as a means of making my life interesting. Whether it's for a $2k trip to northern Japan for a week of snowboarding or a $3k piano plus $15/wk lessons, I see money as an enabler of what I enjoy. As long as I know that I'm taking care of myself for the future, I'm growing increasingly willing to spend the remainder on whatever might strike me, without even considering what that $70 boat dive trip might mean for me 40 years from now.

So what about the rest of you? Do you agree with the article's writer, or are you of a different persuasion?

[irmanator]

I agree with you. However I can't see myself spending 2000 for an ipad, rather go on a vacation.

[disneysteve]

Originally Posted by kork13

Who actually considers future value of money spent today? Do you look at an altogether frivolous purchase (computer/gadget, new shoes, or whatever else strikes your fancy) in terms of what the cost of the item will prevent you from having in retirement?

As long as I know that I'm taking care of myself for the future, I'm growing increasingly willing to spend the remainder on whatever might strike me, without even considering what that $70 boat dive trip might mean for me 40 years from now.

I'm exactly the same way. I've posted here before that we do not live on a budget for our day to day spending. I don't have a clue what we spend on groceries, dining out, travel or shopping. We do, however, budget our savings. I know exactly how much goes into our accounts each month both as a percentage of income (at least 22% of mine, 50% of my wife's) and in actual dollar amounts.

Once the savings are taken care of, I really don't care how the rest gets spent. Future needs and goals are being attended to. What remains is for living today, whether that means going out to dinner, taking a trip to Disney World, spending a weekend gambling in Atlantic City or enjoying our iPhones.

So no, I don't look at every expenditure as taking away from future income. Personally, I'd find that mindset kind of depressing and miserly. Set a goal. Have a plan to reach that goal. Put that plan into action and then move on with the rest of your life.

[MonkeyMama]

Agreed with everyone else.

We tend to be bigger savers and not big spenders. As such, I can't over-analyze the few big purchases that we make. We already do that (over-analyze) without relating to how much it will reduce our fusutre nest egg.

If we had a spending problem, or not enough savings, this would be a good exercise to put things in perspective. I don't think it's relevant when you already save 1/3 of your income and rarely make a big purchase, is all.

[GREENBACK]

Sounds like he was hard up to write an article. These types of articles abound. I guess there is always someone new. I guess that Diet Coke I bought yesterday will cost me $200 in 30 yrs. .

I track my expenses for fun but give little thought to spending any certain amount. Like many others here, My savings and retirement are automatically withdrawn and I spend what's left on life.

I suppose if buying that Ipad was for buissness reasons and you chose not to buy it and lost money based on that decision it could really cost you a lot in 30 yrs.

[Frugal]

I don't think it is worth that much money! I would personally buy an older model, and save money.

[adyboy]

Well my way of looking at this problem is that if you need a tablet pc in the first place, why not have a look at some of the uber cheap android tablets available like the Samsung Galaxy or Zoom. Anyways, like it or not, the ipad is made in china so it's not exactly US made so to speak. Yes it does look awesome but then you get pretty much simillar android tablets at a lower price. Also seems it's not only china , but also India which has a decent tablet. The OlivePad android tablet costs about $400 and comes with most of the bells and whistles Apple charges. Guess it boils down to flaunt value.. But then it is sad that probably most pruducts in US are not really made in the US anymore

[shanecurran]

It is an interesting way of thinking about things, but some of those things we simply cannot do without. A cell phone? I have to have one of these for work and social purposes, no choice, I don't have a home phone. I buy into the idea of consumption smoothing. I don't want to live terribly when I am young only so I can enjoy certain things when I am older.

[SteveBlissLaw]

Na, you'll be able to get it for so much less in like 6 months lol