BlueSky's post about people selling their Versace plays into something I've been thinking about: Where do you draw the line between saving for later and spending on things for pleasure that aren't needs?

Obviously, the first reaction a lot of us have is the person shouldn't have wasted so much money on Versace in the first place. But maybe she (or he!) had a great paying job, thought she had plenty saved up and felt secure and that she should live a little, too, and Versace was her thing and she thought she could afford it.

I want to make sure my family is secure, but I don't want to be the old woman who everyone thought was poor because she was so frugal, who dies and leaves millions to her cats, either.

If you think you have things more or less "covered", that you're putting away a reasonable amount per month, where do you draw the line about whether or not you put away more or spend it on something frivolous that you really enjoy? (Even if it's not Versace! )

If I "needed" something frivolous every once in awhile for my sanity, I would have a budget for it like everything else. Nothing wrong with that. I would even label it frivolous and put a little away each payday until the "need" arose.

Cathleen

How often do we buy things that have little or no return at all. Versace, and all the others i think its all about priorities and where you think your money has more return. Is it your family & relationships or earthly things like versace.!

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The Key to Change...... let go of fear,- Rosanne Cash

http://www.yellowcheckedbottles.com

I like to spend my $$ more on experiences than things- like vacations or other experiences (amusements parks, etc. - things the kids will remember). IMO I would rather wear clothes that are a few seasons old and go out and have fun, than have the season's "latest" and stay home looking good in my new duds! JMHO!

I agree with lovemy2boys - I am more likely to splurge on visiting a foreign country than on a handbag. I also would budget that ahead of time though. I don't buy anything unless I have the money for it in hand, and I would be saving for MONTHS before I would spend that much money on one shot, so I have a lot of time to think about it's importance or value in my life. DH and I have been saving for a plasma tv for what seems like forever, and I really don't even want it anymore, lol. I'm over it. Too bad he isn't. The only plus I can see to getting it is that it will be a space saver in our little living room.

I draw the line at any debt, payments, or basically getting anything that would require us to go beyond using only my dh's income to pay for it. Even when I worked a few hours, we never relied on what I made for anything, except it was fun $ that we could afford to lose if I no longer worked. (other than in college, when we used every cent for expenses). So any extras, such as our dirtbikes and atv's that we ride as a family and that our children race, come out of dh's income only...and that's only after health and life insurances, savings, debts, retirement, etc. are taken care of. Any expenses associated with riding...parts, gear, gas...have to also come out of only dh's pay...no relying on having to provide any additional income or taking from "necessity" $. By handling our finances like this, if more money needed to be available, then I could go to work and know all of it could go to whatever the need is. We also handle any extras for the kids this way...activities or any extras beyond regular necessities are paid only out dh's available extra income.

I think what happened with many people, is that they spent every penny, even if both spouses worked, or went into debt to get these things. They didn't leave any flexibility in their finances. If they weren't saving at all and then spending every last penny on Versaces, vacations, too much house or car, then I think it was only a matter of time before something came up that would make them very short on $...higher gas, food, etc...then they have to sell the extras or go get a second, third job. I just really think leaving room for inflation, etc. in finances is important.

I agree with others that I favor experiences over things, but I don't think there's anything wrong with someone enjoying nice clothing or a Versace, if they enjoy that...and if they can truly afford it.
There are also many family "experiences" that require "things" in order to do them...boating, skiing, camping, etc. I don't think people should be judged for spending on these things...no one knows if they truly value the "things" more than their relationships. I also don't think there's anything wrong with spending $$ to fly to Italy for a couple of weeks ...if you can afford it and still pay for shelter and food.

ETA: I guess I should add...I really, really WANT to go to Italy!

I'm trying to concentrate on spending my money on lasting value items. When it is something that will become worthless quickly, I try to spend as little as possible. For instance, I will spend more on a great winter coat (not full price, of course) because that I'll need and wear for years and years. I try to spend as little as possible on a pair of shorts that I'll wear while doing housework, though. Sometimes I'll split the difference and have one good thing (ie: a really great bathing suit) then go out and spend much less on alternates (ie: cheap bathing suit separates from Target which I'll wear when I'm afraid my good suit might get damaged.)

While a Versace or Coach item seems expensive at first, at least some of the people were wise enough to resell the items and re-coup some of what they paid for them. That's got to be better than my non-designer jeans that just end up going to the thrift store.

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"I've been rich and I've been poor but independently wealthy is where it is at."

I always figure that once we get to a certain "point" (not that I know what that point is lol) that we will start spending money more on things that we want versus only buying needs and saving the rest.
I think having a good balance is important too, even while you are trying to reach your goals, occational little treats are nice.

I have seen where Versace was murdered! LOL, It was in miami. They showed us on the duck boat tour.

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Mom of one kangaroo!

For me it's not only a question of money. It's also a question of values. We made the choice to live a simple life because we believe it's better for our familly, for the environment and for my sanity!!! We created a life where are content with what we have. It's much simplier.

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MARIE --- MOTHER OF TWO ANGELS (MOST OF THE TIME )