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What are you spending too much on?

Posted Jul 14 2008, 10:14 PM by Karen Datko
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We love questions like this one asked by Nickel at FiveCentNickel: "What is your biggest financial vice?" You just never know what people are going to say. Readers name pretty common splurges, like lunches out, and then someone comes out with a zinger.

For instance, after Nickel and others estimated they spend $1,000 to $2,000 more a year than they'd like on eating out, they heard from reader "TSModie." "Is a couple of thousand dollars a year really affecting your finances? If so, you need to start making more money," said TSModie, who lost $20,000 on gambling last year.

"This year so far I'm up, but that probably won't last," the Vegas fan added. "I still save over $100k a year, but I'm sure I've lost over $100k in total gambling over the last several years."

Other responses were downright humble in comparison. Stacey at Just Getting Started isn't happy about the $10 a week she spends on beverages. She wrote: "Consider this: Our food budget is only $45 per week. We spend 22% of our budget on drinks. Yikes!"

Eleven months ago, "paidtwice" said, her vice would have been Target, but now it's scrapbooking. One of her readers also named a shopping destination -- Wal-Mart. For "Coupon Artist," it's the "inability to pass up a deal."

"Converting a Spendthrift" admitted to compulsive purse shopping. She used to hang them in her apartment as "art." Now they're hanging on a pole purchased specifically to store them. "Last count, 37. I love purses of all shapes and sizes," she wrote. She's trying to cut back. "I try not to spend more than $75 on a single purse. I often haunt the nearby Marshalls and A.J. Wright for handbags that are last season or season before but are still trendy enough that I don't feel like I'm carrying the ancient grandma bag."

The gambling comment sparked quite the debate, but -- for better or worse -- TSModie had the last word: "Like I said in my previous post, I save over $100k per year or about 50% of my take-home pay --that is AFTER all my spending and gambling. So please save your nonsensical 'financial advice' for the uninformed masses who occupy your world of the working poor."

Comments

 

I have a vice with video games.  They're like collectables to me, I think, since I have some from two generations (i.e., 8 years) ago that still shrink wrap on them, and others I've at least opened but failed to play.  My problem is that I couldn't stand buying them for $20-$30 and then selling them for around $8 to a local game shop.  Now, they're worth even less, but I'm still able to play them at some point.  I plan on starting  a museum!

Lately, I've been keeping my purchases under control.  I just purchased a house last year, and I'm beginning to feel the pinch of "upgrade the house, or play games."  Since I sit on my butt all day at work, I've been opting to save my money to repair the house-- at least that gets me outside and lets me do physical labor!  (Although drumming in Rock Band is pretty physical!)

I'm also like Stacey-- I've spent too much on groceries in the past years, and I'm trying to cut back so we don't waste as much.  This is also forcing my family to clean out the pantry and think of better ways to spend money on food that will be healthy and fill us up.  Our budget is $30 a week, though!  We're trying hard, but most of the food so far is fresh produce, milk, and eggs, and the rest is coming from the over-stocked pantry.

Check out our budget tracking at http://www.30aweek.info/.  

All the money that we save is being used to snow flake against student loans, mortgage and housing upgrade debt, and credit cards.  It's too much pressure to have so much debt in the current economy, so we're trying our best to alleviate that.

I'm a single mom who makes 22 dollars an hour at a mississippi casino. I agree with TSModie...he makes alot of money and he saves half...if he wants to indulge after he's saved...more power to him....i save one quarter of my paycheck and also have a 401k...i'll retire at 40....i'm 36 now....i learned how to trade penny stocks!  take a chance with some of your savings and learn something new.  a savings account just doesn't cut it anymore!

I spend too much money on alcohol.  It's not that I have a drinking problem, the price of beer has just gone up so much.

That TSModie guy is still an idiot.  Generally unless you are a professional gambler, you're generally going to be losing money not winning.  This guy could sock that money away if he wasn't so stupid.  The guy is also clearly a jerk.  I make about $100K a year but came from humble beginnings where growing up I wasn't able to have stuff most kids have.  I don't consider myself the "working poor" but my parents could have been considered that and I don't feel ashamed at all to be taking advice from these boards and saving money!

I like aloha shirts, but only by Kahala with button front and fish on them.  My wife says I have over 55 but I rotate through them so do not wear the same one for quite a while.  Hey, it could be chasin' women, drugs or alcohol.  My wife can't talk mutch, she is into beading $$$$$

My hubby and I are foodies so getting our grocery budget reeled in is a struggle every pay check. We cook at home, take our lunches to work, and haven't been on a date since January (for which we paid with gift cards from Christmas). Our budget allows for $30 per week on groceries, but we usually go over because of a bottle of wine, some goat cheese, a loaf of artisan bread or other little splurges.  We can't help ourselves!

Horses, which are a more expensive habit than drugs.  I shudder to think how much I spent on my last one (at $350/month, plus extra for vet bills, etc), and I only got $600 when I sold him (although I did get him for free).  I am currently between horses, but know I will get another at some point.

HA! Credit card payments!!  I've finally got myself on a budget I can really live with; I admit I'm a little generous with myself and my "allowance," but it works in my overall budget.  I have minimum payments of $425 on my credit cards and send in $1150 a month on them, in the name of paying these suckers off!!  By FAR what I spend too much on.

CVS-ing!  Oh, I spend so much $$ on things that I don't really need, just to get those extra bucks.  Now I've given myself an allowance of $100 a month for "fun money"-  basically anything that's a "want" compared to a "need".  I like wine.  I don't need wine, so that comes out of my allowance.  I like thrifting at Salvation Army, but I don't really "need" more clothing, so that comes out of my allowance too.  Sometimes it's hard to draw the line.  My husband is on board now and also gives himself $100 a month out of the budget.  He spends his on monthly haircuts, beer, and whatever else tickles his fancy.  The only thing that bothers me is cigarettes.  I quit smoking nearly 2 months ago and he still smokes.  The cigarettes are paid for by our regular budget and not his own money.  Hopefully one day he'll quit too, and that'll give us an extra $150 a month to throw into savings!!

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