Where do you draw the line?

**boefixepa** · 08-08-2006, 07:25 AM

Re: Where do you draw the line?

This I believe will always be a gray area. I may want something, but if I don't use it, it's a waste of money. I've really had to crack down on myself for this. If I will use it, then I can justify it AS LONG AS THERE IS MONEY IN THE BUDGET FOR IT! If it is going to bust the budget I don't care how much I 'want' it, I don't get it--end of story. It's a hard call sometimes, but all I have to do is think about the security that extra money in my budget gives me. I think back to the time when I was living pay check to pay check and remind myself that spending on things, even if they were a good deal, is what got me into that situation.

**Diolla** · 08-08-2006, 07:29 AM

Re: Where do you draw the line?

If a want is something I can use, that would make my life more fun, convenient, better in some way and I find it at a great price, I would probably buy it (if I had the money). If a want is just one more thing to clutter up my life, I might use it occasionally or something like that I don't buy it no matter how good the deal is.

To me a need is something that you cannot do without, food, clothing (within limits) medical care, gasoline to get to work. It is not optional to spend on these things.

**Fern** · 08-08-2006, 07:59 AM

Re: Where do you draw the line?

Trying to never buy something based on want is sort of like trying to diet to lose weight and beating yourself up when you slip up. If you try to be too exacting in disciplining either your eating or your spending habits, you'll fall off the wagon before long.

Why not allow yoursel 1 mid-priced want spending each month. Like a dinner out or one purchase not to exceed $x?

Always remember when considering a purchase that if you spend your money now on this particular thing, it reduces your flexibility/ability to spend on something else down the road. I see spending as a series of tradeoffs, and i like to maintain maximum flexibility at all times!

**pearlieq** · 08-08-2006, 08:35 AM

Re: Where do you draw the line?

I can buy whatever I want up to the amount budgeted for it or the amount of pocket money I have saved up.

After that, if it's not in the budget, and I don't have the money for it, we rarely buy it. I've found I can get by with lots less "stuff" than I ever thought.

**Ima saver** · 08-08-2006, 08:37 AM

Re: Where do you draw the line?

The older you get the less stuff you want and you wonder why you wanted all the "stuff" that you already have?

**Bookie** · 08-08-2006, 09:45 AM

Re: Where do you draw the line?

Originally posted by Ima saver

The older you get the less stuff you want and you wonder why you wanted all the "stuff" that you already have?

Amen! That's so very, very true.

Other questions I find useful when looking at bargain "wants:"

Will I honestly use it enough to justify the expense?
Do I realistically have a place to store it?
Does it duplicate something I already own or have owned?
Is it going to add pleasure and value to my life?

A negative answer to any one of these questions should tell me to walk away. There are lots of things that sound like a good idea that experience has shown me probably won't work out. Anything that requires I change my normal routine, for example, or launch into a new field of endeavor will likely go unused.

**Dido** · 08-08-2006, 10:04 AM

Re: Where do you draw the line?

Great questions, Bookie! I'll add another couple of quesitons.

1. Is there another way I can get this--can I borrow, rent, or barter for it?
2. Can I buy it used?
3. How much will it really cost me, given that I have to work to earn money to pay for it and I have to pay taxes on my earned income? If you are in the 25% income tax bracket as most middle class people are (if you are earning roughly 15K-60K per worker in your family), then you should really multiple the price by 1.33 to find out how much money you will have to earn in order to pay for it. The $20 sweater might not look like quite such a bargain if you realize that you have to earn $26.66 to pay for it (you can see an extended analysis I did like this in the July 14th engry of my blog).

**Ima saver** · 08-08-2006, 10:27 AM

Re: Where do you draw the line?

My credit card is in a sleeve that says:
Will I pay for it during the grace period?
Do I really need it?
Do I need it now?Do I have something like it already?Can I find a cheaper substiture?
Is this the best deal?
Now, go home and sleep on it.
Tomorrow you will know what to do!

**sweeps** · 08-08-2006, 11:06 AM

Re: Where do you draw the line?

I was a little disappointed when I looked in this thread because I thought it meant: Where do you draw the line on being frugal? I don't mean to offend anyone, but I think there are a few people who have gone to the extreme with being frugal. Only taking one or two showers (navy showers, for that matter) a week to save money on water or not using as much toilet paper as you really need to is a bit much, in my opinion.

What really makes me scratch my head is when someone works so hard to save a few pennies while they overlook very big things like:
- Taking advantage of the tax savings and potentially company matching of retirement plans
- Dropping unnecessary insurance coverage and/or raising deductibles
- Using cash-rewards credit cards (or even cash-rewards debit cards)
- Paying bills with online bill pay to avoid the use of envelopes, stamps, checks and wasted time
- Paying down highest-interest debt first, instead of paying off something else that may give a warm-and-fuzzy feeling but makes less of a financial impact.
- etc. etc. etc.

**sarah4554** · 08-08-2006, 11:22 AM

Re: Where do you draw the line?

Originally posted by Sweepsplayer

I was a little disappointed when I looked in this thread because I thought it meant: Where do you draw the line on being frugal? I don't mean to offend anyone, but I think there are a few people who have gone to the extreme with being frugal. Only taking one or two showers (navy showers, for that matter) a week to save money on water or not using as much toilet paper as you really need to is a bit much, in my opinion.

Sorry for the disappoint, I think you have valid point and maybe another thread should be started with, "Where do you draw the line on being frugal"

My point in starting this thread is I believe we're a consumption driven society (myself included) and many times our "wants" are all to often defined as our "needs".

Constant consuming has a negative effect on our wallet but our environment as well. The average family creates 56 tons of trash per year!

As far not taking showers or not using enough toilet paper only in a few countries is that looked at as a "need". In many third world countries showering and using toilet paper is a luxury!

Just another perspective.

**Diolla** · 08-08-2006, 11:27 AM

Re: Where do you draw the line?

Originally posted by Sweepsplayer

What really makes me scratch my head is when someone works so hard to save a few pennies while they overlook very big things like:
- Taking advantage of the tax savings and potentially company matching of retirement plans (I don't have a match)
- Dropping unnecessary insurance coverage and/or raising deductibles (BTDT, wow I saved $10 a month)
- Using cash-rewards credit cards (or even cash-rewards debit cards) (I do this, doesn't make a huge impact)
- Paying bills with online bill pay to avoid the use of envelopes, stamps, checks and wasted time (Do this too but then it's free, what's a stamp?)
- Paying down highest-interest debt first, instead of paying off something else that may give a warm-and-fuzzy feeling but makes less of a financial impact. (Interest generating Debts are paid so guess I can't do this one all I have left is family debt which will definely make me feel warm and fuzzy when it is gone)- etc. etc. etc.

You forgot
- Adjust witholding so you're not paying too much in taxes.

I don't ration toilet paper or take cold showers but if that's what makes people feel like they are making a difference...to each their own. I watch the dollars but I also watch the pennies little by little it all adds up.

**Gruntina** · 08-08-2006, 11:55 AM

Re: Where do you draw the line?

Its funny how before I became �aware� that I could change my financial standard operation, I was living from paycheck to paycheck and incurring debts. I thought it was a huge sacrifice to give up my truck then. And then with time, I gave up cable and gym membership, then it was to cutting my spending on clothes. Then when I think I could not save more, I cut out on excessive food and eating out too often. The thing is for me, it was gradual for me to live my life the way I do now by being frugal. There is no way I could have done this overnight.

The point I am trying to say is that the reverse can be gradual as well into increasing your spending habit and when its done little by little with gradual increase, I might overlook my behavior pattern and all of a sudden put myself in a bad position with out of control spending and going back to paycheck to paycheck.

Maybe if you keep track of the "wants" you are spending over the years to see if you�re off track or if you are still on track of your financial goals and then you would know if you are crossing the line with the "wants".

**Kris10Leigh** · 08-08-2006, 12:34 PM

Re: Where do you draw the line?

This thread is why I hate the dollar store! (I can feel the pencils and rolled up computer paper being thrown at the computer screen now!)

My MIL loves, loves, loves the dollar store! She treats my boys by taking them there. Usually they bring home junk that breaks and I end up throwing it away. She loves to buy Christmas gifts there and they are generally junk! I would rather spend my money on the same item that is well made and that I will not throw away. I find that most of the items in there are things I do not need but that are just fun gadgets. For us, I find that things like dishtowels wear out within a year. So I pay $1.00 for a towel that lasts one year. Or I can pay $5.00 for a towel that lasts 8+ years. I'd rather go for the $8 towel. The only things I would buy there are consumable products that are a good deal.

I do not like clutter though. So wants like these are not my downfalls.

My downfalls are consumables. Eating out is a big one. Entertainment is another. It's hard to say "no" to the theater. DH sang with our local opera company for a while. Movies, rented and at the theater. Amusement park passes, museum passes and tickets to things like the zoo and acquarium. These are the things we have a hard time saying "no" to.

**Ima saver** · 08-08-2006, 01:25 PM

Re: Where do you draw the line?

I guess I am lucky I live where there is not much to do except enjoy the scenery. I think we did have a thread on where do you draw the line at being too frugal. I have to agree with the skimping on toilet paper and not wasting water on showers or flushing the toilet, but I get the same bill every month for water, $20, so it doesn't matter how much water I use, money wise!

Where do you draw the line?