The Overspent American. Help me, I hate budgeting!!

[hanutedmansionmomma]

My therapy is yard sale shopping!

Today we got some fantastic deals and things that I would have loved to have just gone and bought new, but I got it at about 10 cents on the dollar and most of it is in very new condition.

I realize you can't do this daily, but I also do go to thrift stores.

Dawn

This!

I like to shop too - for bargains! Once you pay less for something, it's hard to ever justify paying full price again...I just bought 6 games for my classroom from garage sales, barely used for $11. One of those games, Monopoly Jr., I'm sure would go for at least $15...

I also really linger over a purchase. I visualize where it will be kept in my house.

TOTALLY agree with the notion that if you've had to go without/less/little money at any time in your life, you find it harder to justify spending $ when you do get it. I remember going to the grocery store with $15 in college and comparing unit prices of pot pies... DH and I have jobs now that pay the bills, but I'm still comparing unit prices, and on a coupon train

 

[rszdtrvl]

I also love to shop!

However, we are starting the Dave Ramsey plan on payday (the 10th) and I am really going to have to fight the urge to shop.

I have our budget figured out, but it is already messed up because of medical bills. So the extra that was going on the credit card will now go onto the medical bills. But at least it doesn't mess us up too much.

Like Becky Bloomwood in the "Confessions of a Shopaholic" book, I decided to treat myself to something special : a Coach wallet to match my new Coach purse. This is my last splurge (and first brand name purse I have purchased new) before starting the new budget plan. But I did buy it at the Coach outlet, and I did sell stuff on ebay to get the money to buy it (both the purse & wallet were purchased with money we obtained by selling stuff we didn't use anymore).

They will last for a long time, and every time I pick up my purse I smile. So it is worth it.

The budget planning was tough. But eventually I figured it out thanks to the Gazelle budget link on Dave Ramsey's site. I will need to tinker with it, I am sure, but for now we will see where it gets us.

 

[SandrA9810]

There's people that can live in 200sqft homes and be happy with the little that they have. For me, i'd rather have a few things spread about 1000sqft or more. 2500sqft is my ideal house with plenty of land for a horse and a garden.

We each have our own quirks, and i'm sure a lot has to do with the way we are raised.
Deprived people feel the need to justify their lacking childhood.
Indulged people think they can't live without.
Sometimes we appreciate the lesser times, because we learn a new habit.
And some want to make up for those ramen noodle college days with a big high paying job just to say they never have to go down that road again.

To each their own. But i think as a whole, we do waste a lot of thing, whether it's the process to make the item, or the space it takes up at the landfill. I think we need to be more aware of what happens to the items we use and how best to prolonge it's life before needing to throw it away.

 

[Taja]

Tons of thoughtful replies!

OP, as others have suggested, shopping is a hobby for you. Whether you change your hobby to window-shopping only (my BFF used to love to do this!) or develop hobbies that are less expensive and equally satisfying is up to you.

One thing you could do is go shopping in your own closet or home when the need to shop arrises. Pull clothing and accessories out of your closet and rethink outfits. Or reorganize said closet/drawers to make daily "shopping" easier! *LOL*

I'm with many of the previous posters who rarely shop. Never had money for it when I was young--not to mention lack of transportation!--so I never developed the habit. Now catalogs--or today's equivalent, electronic shopping--is another story! *LOL* But I completely limit myself to what I really need in my life.

I still love leather goods (shoes and handbags), but I only purchase those items if an existing one needs to be replaced. My shoe supply has dwindled to about 20 pairs (includes dress, sneakers, sandals, Birks, etc.) and purses/handbags to a dozen or so. I do buy high quality items (finicky feet--I won't wear uncomfortable shoes for anyone!), so they last a long time.

Clothing & accessories--I'll add one or two relatively inexpensive "fashionable" items (colour, style, etc.) each season, but I like classic styles. That's only two seasons per year--not four! *LOL* Warm/hot and cool/cold weather.

I'm currently looking at my family room and thinking the sofa and loveseat need to be recovered (by me). Still fairly expensive, but less so than purchasing something new or paying someone else to do it--as long as I know I will get it done within 3 months of purchasing the fabric. Since it's about 110 degrees out and I know I won't want to be draped in fabric for the next few months, it's going on the back burner until August or September. Possibly next year.

It's really just a matter of developing your priorities. Right now, my priority is saving money. Thankfully for our economy, not everyone has the same idea!

 

[Luv Bunnies]

My DH and I consider ourselves to be pretty thrifty. We've never followed an actual budget. We just spend what we need to spend and save the rest. This philosophy came in very handy when DH was laid off a year ago. We have a very healthy savings account and are able to get by on my part-time salary and his unemployment. Because we don't have expensive taste and don't routinely buy things we don't really need, we've barely touched the savings account. He's still looking for a job but we aren't too worried about our financial condition.

What I don't understand is why some people can seem to afford luxuries but not basic necessities. My friend has been without a dishwasher for over a year. She says she washes all the dishes by hand and she's getting tired of it. I told her about the rebate program for energy-efficient appliances. We recently bought a new washer and got $375 in rebates. The store had good-quality dishwashers for just around $250 after the rebates. She said it's not in the budget. But then she bought her daughter a new prom dress. OK, I understand wanting to buy a special dress for a senior prom. But then the girl wanted new shoes, a purse and a necklace to go with the dress. She could have used items she already had but mom wanted her to feel like a princess. She said the entire prom ensemble cost $400! And there's no room in the budget for a $250 dishwasher? I just don't get it. I guess is has to do with priorities.

 

[Goobergal99]

You know I do think agree that some people do not have their priorities straight however I am a little guilty of this myself at sometimes... I mean most of us probably are.

In addition one of the other things I can't stand is people who save condemning those who don't, no one here has done this however I know people in my personal life who love to comment on how others choose to spend their money. I chalk it up to jelousy and ignore accordingly. Nice thread though and healthy! Also I wanted to add that I too the previous poster to certainly not feel self indulgent... I too have a bag that is not only more then my paycheck but it was more then my engagement ring

 

[eliza61]

What I don't understand is why some people can seem to afford luxuries but not basic necessities. My friend has been without a dishwasher for over a year. She says she washes all the dishes by hand and she's getting tired of it. I told her about the rebate program for energy-efficient appliances. We recently bought a new washer and got $375 in rebates. The store had good-quality dishwashers for just around $250 after the rebates. She said it's not in the budget. But then she bought her daughter a new prom dress. OK, I understand wanting to buy a special dress for a senior prom. But then the girl wanted new shoes, a purse and a necklace to go with the dress. She could have used items she already had but mom wanted her to feel like a princess. She said the entire prom ensemble cost $400! And there's no room in the budget for a $250 dishwasher? I just don't get it. I guess is has to do with priorities.

Of course it does, but remember one priority is no better than another. Unless of course it interfers with your ability to eat!!

I started the thread because I'm reading a book called "The Overspent American" and because I'm an arm chair sociologist. The book is a fascination look into why as a society, Americans put so much stock into "consumerism".
For example, why is it the every one feels they "need" an Ipod? What's even more interesting that it seems to be a "middle class income" phenomenon (sp). Our income group spends a higher percentage of their income on 'stuff" then the wealthy (according to the author). Also just 45 years ago, middle income folks use to be the biggest group of savers and in a short period of time we went from savers to spenders.

It also talks about how advertisements brain wash us into spending.

It's a good read. I'm not a great budgeter (I actually hate sticking to one) but I am good at setting goals and that seems to keep me out of a lot of financial trouble. I do try to remember what I think are priorities may not be for some one else.

 

[denise5374]

For example, why is it the every one feels they "need" an Ipod? What's even more interesting that it seems to be a "middle class income" phenomenon (sp). Our income group spends a higher percentage of their income on 'stuff" then the wealthy (according to the author). Also just 45 years ago, middle income folks use to be the biggest group of savers and in a short period of time we went from savers to spenders.

IMHO, people(generally) see stuff as a sign of wealth, if they can hve huge house, pool, luxury cars, boats, atv's, whatever then other people assume they are wealthy.

I have always said I would rather see bank balances and not bills because big bank balances (to me) are a sign of wealth.....now if someone saved up to buy that luxury carthan that is a different story.

I think too many people are spending too much money on credit and paying minimums(or slightly) more than minimum payments and think they are doing well(financially speaking).

I remember having a conversation with a friend of mine, she asked moe if I had the Disney VISA and I said that I didn't and that we don't use credit cards. Her response to me "How do you get through the month?" I said "I spend less than I make". She was shocked...fast forward a few months same friend and we are talking about teenage girls and underwear and she tells me that she got a credit card to American Eagle and the girls had to "break it in" and she spend $300 on bras and underwear!!! Well, no wonder she can't make it through the month. My DD said "bra $10 at Target" I was so proud.

Anyway my point to that was that this family "appears" rich, huge house, multiple expensive cars, kids dressed in whatever the latest in store is but the reality is they are far from it.

 

[mrsklamc]

Besides thinking the stuff is a sign of wealth, I think people mistakenly think the stuff can buy them happiness. They buy a new 'toy,' it makes them happy for awhile, but then they get bored and want something new.

One thing that strikes me over and over when I read personal finance books is that the wealthy value trips and experiences over 'stuff.'

 

[SandrA9810]

advertising has gotten a lot better too... Instead of competing for your money, they want you to buy all the products. On top of that, you buy one expensive product, ohhh look it can be used with this new expensive product.

Some people like to be able to "show off" that they may or may not have the money for. But we're shown wealth is through stuff, and not through savings.

In reality, it's probably a good thing we've had this economic downturn... Some people need a good kick in the rear.