Why Sometimes Overspending Can be Worth it
Posted by : Craig | Posted on : Tuesday, December 29, 2009
DELICIOUS
SU
REDDITIf “unfriend” is the term of the year by Webster’s dictionary, “frugality” would win the award from the personal finance community. It has been talked about and discussed regarding the many ways individuals can save. Living a frugal life can also help someone outside of just finances. By savings more money or reducing debt you can live a more stress free life feeling secure about your finances.
The problem with talking about frugality so often is that spending money is often looked at as the devil and a huge negative, almost like you are doing something wrong. In some cases that could be true, but spending money under the right circumstances can be fun and worth it. Even spending money under the wrong circumstances can be worthwhile sometimes.
I recently spent $40 on the DVD of the movie Airborne and could not be more happy about the purchase. This is extremely overpriced and for a DVD most have never heard of before, but I have no buyers remorse at all.
The movie which came out in 1993 about a California surfer dude who moves to Cincinnati for 6 months to live with his cousin, has been a staple of my childhood and one of my favorite movies of all time. It’s the type of movie that I have watched a good hundred times in my life and probably will easily double that at some point. But after I lost the VHS tape years back and the technology has been obsolete for almost a decade now, I was not able to watch it unless I happened to catch it on HBO. Ever since, I have always wanted the movie on DVD but it was never released. After years of searching, I finally found a discontinued copy for sale on ebay for $40. that’s right. I didn’t even hesitate despite the ridiculous price.
Now I own the movie which for me is more than just a movie, but a time portal into the past of my childhood. One that I enjoyed. Despite being an adult now and having a job, bills, and a future to look to which at times all can be stressful, it’s nice to sometimes sit back and relive the younger years. This may be a movie I could only play once a year, but seeing it on my DVD shelf will put a smile on my face everyday. And for that, it was worth the expensive price and I do not regret it at all.
Has there ever been an item you may have bought even though you know you overpaid for it?
I think this is a great example of finding a good balance between saving as much money as you can, but at the sime time living a happy and fulfilling life; often it means that a person has to spend money on something he/she could do without, but is simply fun to have.
I believe the key phrase would be: spend money on what you like, as long as it truly enhances the quality of your life – if it doesn’t, you don’t want it.
Best regards,
Aleks
Aleks´s last blog ..Becoming a Millionaire, and “The Million Dollar Club”
The only thing on which I think I overspent was during the kitchen renovation. I have two excuses: (1) We wanted to have a particular kitchen that helps us engage in one of our favorite hobbies: cooking. (2) Once you get started, you don’t really have much choice to bargain hunt or to negotiate with workmen.
@Aleks I agree, it’s all about give and take and finding that balance in life. If you want it, and it betters your life somehow, I say go for it.
@ctreit That’s a great example. Once you get started you may not have that luxury, but I’m sure you can do your research and have a range of an idea of the potential costs. But clearly overspending a little bit so you can fulfill your love for cooking was worth it for you guys. I’m glad to hear you went for it. Cook anything good lately?
There is a range of perspectives with regards to money ranging from stingy to spending with reckless abandon.
Frugal bloggers are suggesting that the right balance center-conservative with regards to spending, frugality.
Just like you would consider the most virtuous perspective toward charitable giving to be center-liberal, generosity.
… interesting how “balance” isn’t in the middle of the possibilities but slanted toward one side or the other.
@Ben There is a huge range between the two, and that range changes on a per person basis. You are right though, it does seems that “balance” sometimes is tilted.
$40 for a DVD!? I don’t purchase DVDs anymore, but when I did, I would only shop the used racks at our local store. I found some great movies for $2.
That being said, with any purchase, I think it’s more important to consider cost per use than upfront cost. If you watch the movie 20 more times, it cost you $2 each watch.If you watch it a hundred more times, it costs you 4 pennies each time, which is miniscule considering how much joy it brings to your life.
One thing a lot of people associate saving with is denying yourself pleasures now so you can have a well-off retirement. I personally believe it’s more important to have an overarching life of financial stability. You shouldn’t deny yourself things that are going to make you happy now so your 80-year-old self can enjoy a golf membership.
Good for you for recognizing something that was important to you and allowing yourself to spend money on it!
Red´s last blog ..Expense of summer school
@Red I always search Best Buy for the $4.99 racks, I have found some classics there. Sometimes I look at purchases with your theory in mine. If it’s something I know I’m going to use a lot, spending a bit extra makes sense. For example my TV, I watch it everyday. Sneakers, I wear everyday. I know saving for the future is important and I try hard to do so but every now and then it really is worth it and a moral boost when you can satisfy yourself now.
I love that movie!
leslie´s last blog ..A Gift-less Christmas Is Still Christmas
@Leslie I’m glad to hear. Most people have never heard of it.
I balked when I read $40 (for a movie I’ve never heard of), but that’s because I haven’t bought a DVD in so many years! You’re right, though, each person/family needs to put your money into what’s important to you. Part of living the frugal lifestyle (at least for us) is having the money to take trips and have fun once in a while, otherwise, why all the sacrifices? And I agree with Red about cost-per-use. It’s why I spend a lot on quality furniture that lasts 20 years and counting and kids’ clothes that I can later resell to recoup their cost.
@Gina Agree, the whole point of saving is to enjoy the savings and get the benefits from it. Whatever it is for the individual, take advantage of it when you can.
Craig – if you come across a copy of Rad on DVD, please let me know! I am jealous you found a copy of Airborne, I loved that movie as well and will be looking for my own copy.
In a note about frugality vs overspending, it is different person to person. While someone might see spending $40 on one DVD as over spending, that same person could spend an amount on an item that others would think was overspending.
@Kate Agree, people spending that money on something else could be great for them and be a waste for me, everyone is different.
I have not bought Rad yet on DVD although I need to. Here is a website I found that sells it. I have not pulled the trigger yet but will. And it’s not $40.
http://www.rad-on-dvd.com/
Craig, Leslie sounds awesome. We need to invite her over for some popcorn and some movie time watching this instant classic.
By far and away, Seth Green and Jack Black’s finest hour.
When can i come over and watch it on the big screen.
(BTW, i am paying handsomely for the soundtrack if anyone finds it!)
Brian´s last blog ..December DC Blogger Happy Hour Recap
@Brian Anytime. It’s hard to find the soundtrack to that, I can’t find it anywhere either.
Frugality has its benefits but it cannot secure our happiness and contentment. I believe we should give ourselves things that will further our will-being.
@Walter I agree with you. Sometimes you need to satisfy your wants to make life worth living for.
As everone else has said, I do believe that no matter what your future goals are, you should spend money on what you love now as well.
In our case, we pay $100 a month for cable and DSL…that’s a bunch of money but we use it and enjoy it.
If a person can pay off their debts, keep ahead of their bills, and save a little for their future (in our case 20%-30% any given year), then they should treat themselves with what they love now too.
@Crystal Sounds like you are doing very well with everything. I enjoy watching TV too and for me it’s worth paying for cable cause I put it to use. If you get your money’s worth out of it, nothing wrong with it as long as like you say you pay your bills on time.