Speaking from my own experience, I don’t think I actually ever feel *guilty* per se about spending money over a certain level. What I would describe it as having a “resistance to spending threshold” though. I can feel regret over wasting money, if that is what you mean by “guilt”.

Here’s the deal:

After reviewing my projected lifetime savings over the next 25 years (till age 65) and seeing that I am currently on track to be severely short of adequate financial resources in in my 60s, 70s, and 80s, I have decided to increase my income significantly and reduce my spending to only essentials (groceries, gas for the car if I need it, and anything else that would have a significant negative repercussion if I didn’t buy it. This is to bring my savings rate up to the necessary level.

I have decided that once and if I am on track to meet my retirement goals, I will consider increasing my spending, but only once that is the case.

Having that decision framework available to me has served as an effective tool when evaluating potential purchases. And it has made me much more effective at saying “no” to purchases, since it is clear that I don’t have spare money around for things that are not truly essential.

Another thing I do to help this is to shepherd excess money out of my checking account and into a separate savings account every month. I keep one and a half month’s expenses in my checking account, and once I make all of my deposits for the month, I shunt the rest to the separate account.

This prevents my checking account from appearing to be too flush with cash, making things look slighly articicially tight, to keep my frugal/ lean spending mentality in place.

Until my savings rate is in line, I have made it so that dollars *squeak* when I pull them out of my wallet.

Clothes- Thrift Store GURU here. I know all the thrift stores in my area, and what they have good at each of them. Spending more than $5 on an article is out of range, unless it’s a dress for prom/winter formal (two formal dances at my school, that require nice dresses, and I really want a new dress for each of them) My freshman year, my dress was only five dollars, sophomore formal was 7.50, junior formal was FREE (but I bought $20 shoes), junior prom was 7.50(but I wore those same shoes), this years formal was $8 (I shuddered at that, but will be wearing the same shoes) and prom hasn’t been decided yet.

Everything else is generally a $0 guilt level, except dollar tree. I shudder at buying more than ten things there (though some things are a great deal, so I will splurge then).

More than $2000 in the bank!

1. For large amounts I consider what the return might be if invested. For example, I bought a car about a year ago that cost close to 20K. Invested at a reliable 5% that could produce $1,000 per year forever. So this car is costing me a grand per year indefinitely. Serious guilt!

2. Academic and development opportunities for my kids: I don’t know the limit but it’s high.

3. Occasional dinner out to assuage the wife: $25.

4. Things I know I can get free, such as books from the public library: $1.00 or less.

5. Things I should be able to avoid buying due to conservation or reuse, such as glass storage jars (think spaghetti sauce), note paper (cut junk mail envelopes in half and write on the blank side): very low, maybe five cents.

6. Services I can do for myself, such as repairing a leaky sink drain: cost of the replacement parts.

I have no debt.

For clothes, my limit is $35. Unless I’m buying professional or formal wear, I see absolutely no need in buying expensive clothing.

Other than student loans, my debt is around $1,800. Is that pretty typical from your survey? Do $5 limit people tend to be at around that range?

My wife, on the other hand, has no problem spending $3 on something, but has a huge problem spending $2,000. So in some sense we help balance each other, and in some sense our spending habits get on each others nerves. =)

So my threshold is about $1 – $200. Anything above that is usually planned and doesn’t cause worry.

Maybe you should feel guilty about stealing.

I love your blog and read for updates multiple times per day.

The thought of “what is my guilty point” has been solved for most products, but not who you expect. It’s the marketers. Those that write the ads or determine how much something costs. They determine how much of a markup people would be willing to accept without trigger this threshold.