Continuing that discussion about the $3,000 handbag from earlier this week, I wanted to clarify something. If your finances are in order, you’re putting money away for your future, and you’ve been planning and saving for that $3,000 handbag because it’s a high-quality one and it’s something you’ve wanted for a long time, that’s great! Go for it!
My problem comes in when you have a young professional loaded down with debt racking another $3,000 on the ol’ credit card because he or she wants it.
Take me, for example. My splurges are on high-quality kitchen implements. Do I really need to spend a hundred dollars on a chef’s knife? No, probably not. But I use my chef’s knife almost every day and I know quite well how useful a quality chef’s knife can be.
The big catch here is that I can afford it and I am planning for it. I’m not going out and blowing $5,000 on everything I could possibly want in my kitchen. I’m looking at what I actually need and use and replacing my low-quality pans and knives and implements a piece at a time with high-quality items.
I’d rather have one great knife than ten junk ones. The kicker is that I actually know what the difference is.
On with some personal finance articles.
Can Webkinz Teach Kids Personal Finance? I really wish Webkinz (and other such companies that target children) would think outside the box a bit like this. It’d certainly help to convert someone like me from a highly hesitant parent to one that might be more involved and supportive of this interest in my child. (@ clever dude)
Do Cars Stop Depreciating After 200K Miles? I’m curious about your take on this. I do agree that after a certain point, depreciation of a car’s value is minimal. You’ll take it in to a “push pull drag” sale and get the same amount for it, no matter what. (@ pro bargain hunter)
Hybrid vs. Gasoline Vehicle Comparison – Are Hybrids Worth it? The most efficient car in terms of carbon emission and fuel efficiency isn’t a hybrid. It’s driving an old Toyota or Honda into the ground. (@ million dollar journey)
You Don’t Have to Be a Millionaire to Invest Like One Excellent advice for investors who don’t have much startup money. (@ usa today via free money finance)