buying stuff

It’s Dirt Cheap!

May 1, 2013 By Jennifer Derrick 2 Comments

The other day I was perusing another personal finance message board when I came upon, of all things, a debate about the merits of Blu-ray versus standard DVD. It came about because someone was mad that they were being “forced” to buy a combo pack that included both formats because the movie studio refused to release the DVD-only option. The person was upset that they had to pay the higher price when all they wanted was the standard DVD.

Anyway, the Blu-ray camp was defending the higher resolution and better picture, while the DVD camp was saying that the difference wasn’t enough to matter to them, or to make it worth shelling out more for the player and the movies themselves. At some point in the argument, one poster threw up their virtual hands and said, “Oh, for crying out loud. Blu-ray players are dirt cheap. Just buy one, get the [dang] movie, and be done with it. Stop whining about something that’s so cheap!”

At that point I just shook my head. (Remember, this was on a personal finance board where the careful spending of money, not the random blowing of money, should be the priority.) Sure, you can occasionally find a Blu-ray player in the $40-50 range, if you’re willing to choose the cheapest, lowest quality option. But if you want one that gets good reviews and has more functions (like internet streaming that might allow you to get rid of cable which would be a money saver), you’re looking at paying closer to $100 or more. That might be “dirt cheap” to someone who has a large income or a lot of extra cash lying around, but it’s not an inconsiderable amount to many people. And if they don’t feel like the picture gain is worth it, then it’s money wasted.

I see this a lot with other things. People have encouraged me to get a smartphone by telling me that they are “dirt cheap” now. Well, they may be but given that I have no use for the features of one, any amount spent on a smartphone would be a waste of money to me. The same is true of stainless steel appliances, granite countertops, tablet computers, new cars (how anyone can think of this as dirt cheap still escapes me), kitchen gizmos, and swimming pools, all things that people have encouraged me to get at one time or another. Over the years, people have told me things like, “Oh, you should upgrade this because prices have come down so much.” Or, “Those are so cheap now it doesn’t make sense to keep the old one.” And, “An upgrade doesn’t cost as much as you think. Get with the times.”

While these people may be well-meaning, what they fail to appreciate is that, in most cases, I don’t see the need or have the desire to buy whatever it is that’s so “cheap.” I don’t like stainless, don’t care for granite, have no use for a tablet other than to play with it in the free time I have too little of as it is, and I don’t want to tear up my yard with a pool. As for Blu-ray, I guess I fall into the camp that says the picture gain isn’t important enough to me to make it worth the price. (Not that it’s not better, just that it’s not important to me.) So no matter how cheap this stuff is, it isn’t going to make me happy. I prefer to keep what I have because it meets my needs without a lot of extra features I don’t need or want, and it keeps my costs down. If, at some point, I see an upgrade as worthwhile, I would certainly consider it. But that time isn’t now.

This is how a lot of people get into trouble, though. They hear the chants of “dirt cheap” and figure, “Why not?” Then they pay for something that they didn’t really need or want. And these upgrades often come with costs of their own. The tablet and cell phone needs apps and a case. The Blu-ray player requires an HDTV and then the movies themselves cost more than standard DVD’s. The pool has upkeep costs. And so it goes. If what you already have meets your needs and makes you happy, it doesn’t matter how “dirt cheap” the upgrades/new items are. Spending on them is simply wasting money.

If you want to save money, don’t listen to other people who try to pressure you into upgrades. While it might cost less today than it did a year ago and be “cheap” in that sense, it’s not worth paying any price if it’s not something you need, want, or which will make you happy. If you don’t see the extra features as worthwhile, the “cheapest” thing you can do is say no. The good news is that if it’s cheap today, it’ll likely be cheaper next year, especially in the case of electronics. Just hold out until it’s the right time for you to buy.

(Photo courtesy of Gerry Dincher)

I Want That: Day 30 & 31

February 3, 2013 By Jeffrey Strain 1 Comment

I rarely get the consumer bug. Anyone that knows me well also know that if you want to take me shopping, chances are you’re going to have to drag me screaming and yelling the entire way. I rarely “lust” after any gadgets. Even my computer which I spend most days on is nothing more than a basic model picked up at Costco that gets the job done. Most of the things that I have which aren’t necessities tend to be gifts given to me by others because they think that I need it. In other words, I just don’t by a whole lot of stuff.

I’ve never owned a cell phone. I’ve never owned a digital music player. It’s been over 10 years since I have even worn a watch. So, you can imagine my surprise when I found myself saying “I want that!” upon seeing a $200 watch that caught my eye. This is especially surprising because normally if I decided I needed a watch, I would go the total utilitarian route. I would buy something that was inexpensive but dependable which would cost far less than $200. This is the watch that I want.

My sister told me that I was morbid for wanting a watch that says that, but it’s exactly for the opposite reason that the watch appeals to me. I actually think that the watch would make me more productive — something right there on my wrist reminding me that life is short and to make sure to utilize every minute that I have doing the things that are important to me. I can fully understand how this watch wouldn’t be something that many people would find appealing, but knowing myself and what motivates me, I think that owning it would help motivate me to do more of the things that I want to do.

All that being said, I haven’t purchased the watch. Being on the minimum wage challenge, I recognize that this is a want rather than a need. I’ve lived the last 10 years just fine without a watch so even though I want it, it really makes little financial sense for me to buy it at this time. At some point I’m sure that I’ll get it (it has passed my one week test — most things that I want to purchase that aren’t essential I wait a week to see if I still want it. If I don’t, I have saved money and if I do, I know that I really want it), but that time isn’t now due to the current financial circumstances. Maybe I’ll ask for it as a gift or more likely, I will save during this year and purchase it when I feel more confident that it doesn’t have the potential to come back and financially haunt me (I think it would be a nice gift to give myself when I win this challenge, especially since my sister doesn’t like it). Even though I know I don’t buy much stuff compared to a lot of people, and that I could probably buy this now and get away with it, it’s still essential for me to recognize the difference between my wants and needs to make sure that I don’t get into trouble with my budget.

With the car having the clutch clicking issue and me deciding not to travel until I can get it looked at and fixed, the last two days have been spent at the house working on the computer (not exciting, but hopefully it has helped me get ahead enough in my writing that I can do a bit more traveling when the clutch issue is fixed). I have taken my daily walk to Annadel State Park which is only a mile away from the house and has a lot of nice hiking trails.

I feel pretty good about how the first month has gone. February is looking to be a bit more challenging with no house sitting jobs lined up, but I’m feeling more confident that I can pull this challenge off. While I know there will definitely be some challenges along the way, I have built a bit of a cushion this first month which means I can weather them as long as they aren’t too big. I’m looking forward to the challenges ahead.

Today’s & Yesterday’s Spending

Food: $0.00
Car: $0.00
Housing: $0.00
Travel: $0.00
Health: $0.00
Misc: $0.00

Total: $0.00

Total Spending

Food: $21.76
Car: $0.00
Housing: $0.00
Travel: $0.00
Health: $485.00
Misc: $19.00

Total: $525.76

Money Lessons Learned from the Christmas Craziness

December 19, 2011 By Jennifer Derrick 3 Comments

We’re slam in the middle of the Christmas nuttiness. Spend, spend, spend is the current motto and I don’t know whether it’s the coming full moon or simply the Christmas insanity, but people are acting crazy. I’ve seen far more people this year yelling at other people, pushing and shoving, flipping others off in parking lots, cussing at cashiers, and generally acting like fools. As someone who intentionally keeps Christmas small and intimate, I find all of this a bit disturbing. Fascinating in a strange, experimental kind of way, but disturbing nonetheless. If I didn’t have to go out to get groceries, I’d happily spend the entire month at home.

This insanity is good for teaching some fundamental money lessons, though. There is much to be learned by simply standing back and observing people at this time of year. Here is what I’ve learned this year.

A resolution is no substitute for not going overboard in the first place

I’ve already heard several people say something along the lines of, “I know I’m spending too much, but my New Year’s resolution is to get my money under control, so I’ll deal with it later.” The big plan is to compensate for the Christmas overindulgence by going cold turkey in January. It’s the same rationale applied to dieting with, usually, the same dismal results.

The Lesson: A resolution to “do better” with money later is no substitute for restraint now. By refusing to rein in spending now, you’re only compounding the damage that will have to be undone in January. If your finances are already out of control, going on a binge in December only makes things that much harder later and increases your risk of outright failure. The bigger and more difficult the mess is to clean up, the greater the chance you get frustrated and give up. Rein in your spending now and you’ll have a lot less to clean up later and a better chance of succeeding.

Physical stuff is never worth getting hurt over (or making a fool of yourself over)

I didn’t go out on Black Friday, but I watched the news reports of people getting pepper sprayed, knocked down, robbed, and shot and thought, “Is any of this really worth it?” I see people in stores cussing at the help, demanding that rules be broken just for them, pushing other people, knocking over displays, and generally acting like fools and I think, “Where are these people going to shop after Christmas once they’ve gotten themselves thrown out of every store in town?”

The Lesson: There’s a reason why, when someone’s house burns down, they say, “It’s only stuff. It’s not important.” They are so grateful that no one was hurt and they realize that that’s the really important thing. Stuff is just stuff. It’s not worth getting hurt over (or hurting others over) or making such a jerk of yourself that the police have to be called. Whatever it is you’re after will almost certainly be around after Christmas and there will be deals then, too. Even if you’re convinced that this is a one time deal, it’s still not worth sinking to a new low. Just relax, enjoy the holidays and remember that it’s not the stuff that’s important.

What’s “hot” usually ends up being disappointing

I watch people chase the hot deals or hot products as if their lives depend on getting this one thing. They stay up until all hours checking websites, they chase sightings of the coveted item all over town, they bully employees into checking the storeroom, and they pay outrageous prices on resale sites to get this special thing. Most of the time it’s all for naught because the hot thing ends up being a disappointment.

The Lesson: Don’t chase what’s hot just because it’s hot. Do your research and make up your own mind as to whether or not this is something you really want or need. Don’t buy it just because everyone else is. Chances are that this hot item will end up being a disappointment. It will break, it won’t have the right components for your needs, the kids would rather play with the box, or it will sit unused in your house. It’s “hotness” is no indicator of quality, fun factor, durability, or usefulness. Figure out for yourself what you really need and want and then go from there.

A few well chosen things are often better than piles of things

A lady in Target the other day was pushing two carts loaded to overflowing with toys. I figured she must have at least six kids, but when I overheard her telling her shopping companion that her one child would love all of this stuff, I almost passed out. Chances are, this kid will end up so overwhelmed on Christmas that he or she won’t even be able to process half of what was in those carts.

The Lesson: It’s been my experience that a few well chosen gifts are far more impressive than piles of random stuff. Quality over quantity wins every time. This is true for both adults and kids. Kids end up overwhelmed when there’s too much stuff and will typically just pick out one or two things that quickly become favorites while the rest is ignored. Adults aren’t much different. People are generally happier when there are a few things that they really want or can use under the tree. Each one is appreciated and used and nothing is shunted to the side.

Greed is unattractive

Sadly, this time of year brings out the greedy monster in many people. They clear shelves of hot items, they try to use coupons, sales, and deals in ways that the merchants never intended, they grab things away from other shoppers, and they want more, more and more and when they don’t get it, they get ugly. Many people brag to others about how they looted this store or got away with some pricing error, or used a coupon fraudulently. All this greed is unattractive.

The Lesson: Greed does not make you a better person, it doesn’t make you some kind of shopping guru, and it doesn’t make you a hero to your kids (or it shouldn’t). It just makes you greedy, pure and simple. Instead of grabbing everything for yourself and thinking only of what you want, try thinking of what you can do for someone else. Even if it’s only to slow down and hold the door open for an elderly person instead of knocking them over to get to a deal, it’s a step away from uncontrolled greed.

Buyer’s remorse is what happens when you don’t think

I was in Target on the Monday after Thanksgiving. As I passed by the customer service counter I noticed that the line was very long. It looked more like the day after Christmas. I had to think for a second, but then I realized that what these people were returning were the TV’s, game consoles, cell phones and other items that they’d bought on Black Friday. Evidently they’d gotten sucked into the hype and bought tons of stuff they didn’t really want and, now that sanity had returned, they were bringing it all back.

The Lesson: Buyer’s remorse is a direct result of not thinking. When you get sucked into the chase and you let the shopping rush take over your mind, you end up with all kinds of things you don’t want and need. If you’re lucky you can return them, although you’re still out your time and gas money. If you’re not careful, though, you end up stuck with a bunch of stuff that leaves you wondering, “Why do I have this?” The wiser course of action is to think about any purchase you make before you make it. Ask yourself if you really need the item, want the item, have space for the item, or will use the item. Be honest when you answer. If you can’t answer yes to at least one of these, walk away.

Tuning out the media often saves money

No matter what the season or issue, the job of the media is to whip us into a frenzy. We’re supposed to be scared of everything beyond our own front doors, awed by every new consumer good hurled into the marketplace, and deeply affected by things that have no bearing on our individual lives whatsoever. This is how they keep us tuning in. Sanity is best preserved by simply tuning out.

The Lesson: When it comes to Christmas, we’re assaulted with a daily barrage of “buy” messages. Everything from late October through early January is one long sales pitch. Commercials, ads in the paper, and even news stories are all about spending. The goal is to create a fever over hot items and get people into the stores. Listen long enough and you start to want things. You start to want to get in on the “fun” of shopping that everyone else is having. You start buying into the myth that the holidays are for nothing but shopping. If you simply tune out, you miss many of those messages and you are better able to find your own joy. You clear the space in your head devoted to shopping and you realize that spending time with family, engaging in activities like caroling, playing games, or baking together are far more fun and fulfilling than anything the mall has to offer.

For many people, Christmas is a time to blow large sums of money, not a time to reflect on money lessons. However, there are many lessons to be learned from watching the crazy behavior of other people. If nothing else you can learn what not to do by watching the lunacy unfold. Take a step back this holiday and watch what other people do with their money. Chances are you’ll be appalled and quickly reverse course.

(Photo courtesy of lalawren)

The Want List

March 24, 2010 By Jennifer Derrick 3 Comments

A couple of weeks ago I wrote about how helpful a shopping list can be when you want to save time and money. I’m a firm believer in lists. I compile pro and con lists when I have to make a decision, I keep lists of places I need to go for errands, and I keep a Christmas list as gift ideas for other people occur to me throughout the year. All my lists save me time and money and keep me organized. But besides the shopping list, no list saves me more money than the “Want List.”

I don’t have enough money to buy all the things I need and want when I want them. I have to prioritize: Needs first, then wants from whatever money is left. But, like anyone else, I sometimes get frustrated when I want something and can’t afford it right then. I think I’ll forget about it or that it won’t be there when I can finally buy it. Sometimes when I do have money to “blow” I get confused by all the things I could do with it. Enter the Want List.

As I see things I think I want, I write them down on the want list. It can be anything not necessary like a CD, a DVD, a video game, a bedding set, or a book. I make a note of the title, author, price, where I saw it, and any other identifying information or descriptions that will make it easier to track down later. I might print out a web page if it helps. Then I file the list away and forget about it. When I have some extra spending money, I pull out the list. A lot of times I look at the list and think, “Why did I want that?” for half of the stuff. Some of it I think, “I don’t even remember wanting that.” Anything that I no longer want or that I can’t remember why I wanted it, I cross off the list. That removes a good number of items. Then I look at what’s left more carefully. Anything that’s been on there a long time receives first consideration. If it’s been on the list a while, it’s probably survived a few cuts and remains a definite want. The great thing about the older items is that, by the time I get around to buying them, I can usually find them on sale, at a reduced price, or even on the used market. The longer you wait for most stuff the cheaper it becomes. (This happened with the Wii. It was on my want list for two years. When I finally bought it, the price had come down to $199 and many games were cheaper or available used.)

The beauty of the list is that it keeps me from feeling deprived when I can’t just buy something at the moment that I first want it. I don’t leave the store with a feeling of, “I’ll never get that.” I leave the store with a feeling of, “I’ll add it to the list and get it later.” That’s more positive than just feeling like I can’t have something. The other great thing about the list is that it acts as a waiting period. When you wait to buy things you often find that, once the initial high has passed, you no longer want the item. This happens to me about sixty percent of the time. The things that remain on the list are true wants and when I finally get them they are more appreciated. If I bought everything I thought I wanted the moment I saw it, I’d be awash in clutter and useless junk. And broke. By waiting to see what truly rises to the top of the want list, I save a ton of money and space in my home.

Women Hate Shopping, Too

January 15, 2010 By Jeffrey Strain 9 Comments

There are a lot of myths when it comes to shopping, and one of the biggest is that women love to shop while men hate shopping. The truth, according to Lee Eisenberg, author of Shoptimism, is that men and women both love and hate to shop in about the same proportional numbers.

The same is true with compulsive buying. While it is often viewed that women are more likely to be compulsive buyers, the truth is that both men and women are compulsive shoppers at about the same rate. The difference is that men are often better at hiding their compulsive shopping by saying that it’s a “hobby.”

Where the two sexes do deviate when it comes to shopping is their willingness to return items to the store. Women are far more willing to take something back that doesn’t work or had a problem then men are.

Why do you think that women get such a bum rap when it comes to shopping when the truth is much more equal?