I don’t live paycheck to paycheck. In fact, I have what I personally consider to be a healthy savings account lined up. In my current lease, my savings account will pay for more than 6 months of living expenses (and more if push came to shove). I also typically add to that savings cushion each month. This is well within the cushion most experts recommend. I achieve this by monitoring my spending. I don’t usually drink, I limit my meals out to 1-2 per week, and I’m not an extravagant shopper. In fact, the vast majority of my recent clothing purchases have been at the Salvation Army (recent scores: two Patagonia capilene shirts for $3 each, several pairs of jeans for $5 each, and a cute top for $3.50). I cook a lot of food from scratch. I think it's fun to pay my bills with paychecks from last month (I'd go even further back, but I transfer most of my savings into a high-yield online savings account). All in all, I definitely save money well and enjoy doing so.
Despite my fairly frugal lifestyle that allows me a fair amount of "discretionary income", I still have a hard time spending money on a non-necessary purchase. The clothing purchases were all things that I needed (okay, the capilene shirts were for ultimate Frisbee – not technically needed, but it is a big part of keeping me healthy and ultimately saving me money), and going out to eat, either by myself or with friends, keeps me mentally fit. But when it comes to making larger purchases, I have a hard time biting the bullet. I hem and haw. I question whether or not I really need a wanted item. Will I use it? Is this really the best deal? Can I make due with something I have?
For example, it took me forever to finally buy a digital SLR. I worried about price points and lenses, and I had a hard time justifying the camera even when the zoom on my old camera broke (which, by the way, I’ve now fixed). I didn’t really need to buy the new camera. I finally decided to buy it when my parents gave me some money for graduation. My mom stipulated that I spend the money on something fun and enjoyable for me; she didn’t want it to sit in my bank account and be saved for something “practical.” (She is probably remembering the fate of my college graduation money which was used to pay the deposit and first month’s rent on my first apartment.) I used the money to buy my Nikon D40, and it has become my baby. I love that thing, and I take it with me almost everywhere. It has become a source of joy in my life, and I kick myself for not buying one earlier. In this case, it was a reasonable purchase: I already knew that I took lots of photos, I always enjoyed my old manual cameras, and I knew I wanted a better camera for taking photos at my ultimate Frisbee games. It just took the present from my mom to finally push me into spending some money on myself.
Now, I’m deliberating on another big purchase. I did buy a bike a few months ago, but I’m sad to say that I just don’t ride it. It’s rusty and heavy and not really a lot of fun to ride. I had intended to bike to work almost every day, and I have not been doing that (in my defense, I also have been struggling with some minor injuries that make me hesitant to engage in more physical exercise, but physical therapy is helping calm my shin splints and sore lower legs). I had intended to use this bike in Ann Arbor and then buy a new bike when I got to Minnesota. In speaking with a friend tonight, however, I think I should probably just buy a new bike here. In the long run, it won’t really be that hard to move a bike with me; it’s not like I don’t have other stuff to move too, and a bike is not a significant addition to my possessions.
I’m still a bit torn on this decision. Unlike the camera, I am not completely sure that I will love and use this bike. After all, I don’t use the bike I currently own. Then again, I rode a bike daily during the time I lived in the Netherlands, and I have no reason to believe that I wouldn’t embrace using a nice bike here in Ann Arbor (and upon my move to Michigan). I’ve priced bikes out, and I see one I really like at REI -- and much thanks to my friend Mark for actually finding it for me! This gives me an additional 10% off, as I have an REI credit card that returns dividends for my REI purchases, which would bring the bike price to $315 before tax.
In reality, this probably is quite a small number for something I am hoping to enjoy. Using the bike will result in savings on gas and less wear and tear on my car. It will also improve my fitness level. Yet still I am having a difficult time giving myself permission to get over the price tag and just go for it. At the very least, I’m making progress; I’m going to go to REI and check out the bike this weekend. And if I like it, I’m going to try really hard to just hand over my credit card and enjoy the purchase without worrying.
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