If you don't need it, it's no bargain
Posted
May 14 2008, 12:17 PM
by
Donna Freedman
I was intrigued by the "What busts your budget?" item that Karen Datko posted at Smart Spending last week. In it, a number of personal-finance bloggers described some costs that hurt: gasoline, haircuts, dentist appointments, new shoes for the kids, (unnecessary) new shoes for the moms, soft drinks, veterinary care and the like.
A guy calling himself "Caja del Oro" left a comment describing his own budget buster: all those "deal of the day" Web sites. It's not that the deals are particularly expensive -- it's that they're too darned cheap, and therefore irresistible. "Most of the time I don't even know I 'want' something until one of these sites offers it at a discount," Caja laments.
Recently he bought 120 single-serving bags of Sun Chips. That's two whole cases worth. And all 120 bags have a July expiration date.
"Now we've become the Sun Chips Fairies, giving bags away to friends and family, who are always appreciative and slightly confused," Caja says.
"I'm mostly successful in avoiding the siren song of these sites, but every now and then, out comes the credit card and there goes my budget."
It's like you're losing money by not buying
How is it that we convince ourselves that it's not only OK but fiscally prudent to do stuff like this?
One word: price. Sometimes I'm tempted by a really cheap item in the daily "hot deals" feature we run from partner blog dealnews.com. A cross-cut shredder for $14.94 including shipping. The collected films of the Coen brothers for $22.47. An eight-piece wrench set for $7.95.
Then I remind myself that I can use my daughter's shredder any time I want, that the city library provides movies free of charge, and that the last time I needed a wrench was to change my car battery and the staff at Schuck's lent one to me. Thus my credit card remains in the holster and my budget stays unbusted.
That doesn't mean I never buy things. Recently tuna went on sale three for 99 cents and I wound up with more than three dozen cans of the stuff. Then again, I carry a lot of brown-bag lunches, and canned tuna is a lot more shelf-stable than chips.
Little things can cost a lot
Some people have this problem in dollar stores -- if it's "only" a buck, why not buy it? Especially if you're a big fan of that 99 Cent Chef dude. Yard sales are just as bad, loaded as they are with cheap paperback books, kitchenware, video games, candleholders and other stuff you have no room for in your house.
I can think of a couple of reasons not to get something that's really cheap. For starters, you might not really need it -- and if you don't need it, why are you buying it?
In addition, "cheap" can turn into "budget buster" if you do it often enough. A $3 cup of coffee is a nice treat. Do it every day, though, and you'll be spending $21 a week or $1,092 a year -- and even more if you leave a tip.
Now comes the green-vegetable part of the story, i.e., the part you do because it's good for you: Before buying, get in the habit of asking yourself a few questions.
Do I really need this?
Will it improve my life?
Do I already own something that will serve just as well?
Can I delay this purchase?
If not, is there any way to get it cheaper -- or even free, such as going through craigslist or Freecycle?
Too often our budgets are busted despite our best efforts. Root canals and car trouble will always be with us. That's all the more reason to control spending where we can. How many Sun Chips does a person really need, anyway?
