The Good Life on a Budget

• Posted by JvW on July 7th, 2009 filed in Frugality

I am a naturally frugal person, especially when it comes to buying things for myself. Whenever I want something, I analyze and re-analyze it for weeks or even months. My husband, on the other hand, is much more impulsive when it comes to spending, mostly because the things he “wants” are actually things he can justify as needs. He’s been showing me the light in that aspect recently. This justification does not works for frivolous expenditures, but is useful for frugalites like myself to realize when it’s time to buy something, or for spenders to realize that it’s not yet time to buy something. Here are his methods:

1. Amortization. The more times you use something, the less it costs per use. If you’re looking for something that you plan to use for years, it’s worth it to spend more money on it now to ensure that it will last longer. This was the thinking behind my new MacBook instead of buying another PC. I plan on using this laptop for 5+ years, until it dies or no longer meets my needs.
2. Don’t replace things that work. It’s very easy in our society to want to get the newest, shiniest version of something we already have. Trade in a perfectly good car for the 2010 model. Upgrade to the new iPhone so you can shoot video. Buy a bigger TV for the football game. You have to stop and ask yourself if what you’re using is sufficient for what you’re using it for. How many times do you think people shoot video with their cell phones? Is it really worth the upgrade?
3. Know when to call it quits. On the flip side of #2, when something is sporadically working, or is incapable of performing necessary functions, it’s time to be retired. My old laptop didn’t have the capacity to run large programs such as Photoshop, but I managed with what I had. It has been spotty with power and the battery only lasted about an hour, so I kept it plugged in. Last week, it stopped charging altogether. It was time to upgrade.
4. Always wait for a deal. (You knew this would make it in there, right?) If you know you’ll be making a purchase in the near future, start checking out prices now. That way, when you pull the trigger, you know you bought for the right price. This goes a long way towards easing my mind on spending money on myself.