Now, I’m pretty sure I look fairly silly wearing this particular accessory. But that doesn’t change the fact I feel strangely awesome in them. I’ve never had anything trendy before, and — as my sister-in-law pointed out — I kinda like it. I would never spend that much for sunglasses, but that doesn’t mean that when I get a free pair I’m not enjoying the feeling of wearing $300 shades. Which has me thinking again about material things and status.

Buying things and how we feel about ourselves

Often we spend money on things for status reasons. We want to keep up with the neighbors, or we want to show off for other purposes. Or we think we deserve something. The idea of deserving things is part of the reason we’re a nation that is in such severe debt. Materialism and consumerism tend to result in buying things we don’t need and maybe can’t really afford. (If you have to buy it with debt, you can’t afford it.)

I like to think that I’m not a materialistic person. I don’t particularly care if I have a TV that’s as big as the one down the street, and it doesn’t bother me to drive around town in a 7-year-old Saturn wagon. But sometimes I’m still tempted to define myself in some small way by my possessions. My husband says I have a whole new attitude when I put on the Oliver Peoples shades. So, I guess just knowing that I’ve got something expensive and trendy does have an effect. Hopefully, I won’t let that influence me to spend crazy amounts of money on things I don’t need.

Do you have a possession that defines you in some way?

Post from: EveryJoe

Money, Material Things and Status

At any rate, as I bought the sandwich stuff for lunch on Wednesday (my responsibility), my husband made a comment about spending money. Which made me laugh because I spent $20 on stuff to take. The camping trip (with gas + other costs) will be significantly less than our recent excursion to Boise. Indeed, camping is one of those frugal vacation ideas. Provided, of course, that you get a tent and sleeping bags, rather than going a more expensive RV route. Here is how we will save money by camping over another type of vacation:

• Fix all of our own food, rather than eating out.
• Sleep in a tent (I do bring an old air mattress) rather than paying for a hotel. The campground costs between $5 and $20 per night.
• Swim in the lake, rather than having to pay for entrance elsewhere.
• Plenty of free activities for the kids and the adults (hiking, running around with each other, identifying plants and animals). My sister is bringing their portable DVD player — just in case.

We could make the camping trip even less expensive by having it closer to where I live, however. I’m going to have to drive about four hours to get the campsite. But still, a remarkably frugal way to have fun.

Image source: Laurel Fan via Flickr

Post from: EveryJoe

Frugal Vacation: Camping

SO, car update: We’ve been enjoying the Prius we ended up buying. I’m still working through my issues with buying a car and adding a new monthly payment, but that’s my m.o. (I always have buyer’s remorse on anything that costs more than $100; Josh never does because he only buys things he really thinks he wants/needs.) Eventually, when Josh starts taking it to work and I get more of MY work done (since I won’t be carting him around), I’ll feel better and less stressed, I think.

Post from: EveryJoe

Carnival of Personal Finance at Dollar Frugal

This, of course, has application in personal finances as well. Some of us have need of a gatekeeper for our personal finances. In business, a gatekeeper is defined as a decision-making unit that limits purchasing by controlling access to funds. The concept can work in personal finances. One example of a sort-of gatekeeper arrangement between life partners might be an agreement to consult together before making purchases that cost more than $100 (or $50 or $500 or whatever you think is reasonable for your situation). Or, you can use a financial planner or some other agent to help control access to your money in order to limit your spending. In some cases, a gatekeeper acts in the more official, court-appointed role of conservator.

No matter how it is set up, though, the function is the same. It is to encourage you to think about how you are spending your money, and determine whether it is something you need — or are willing — to pay for. A gatekeeper forces you to really consider your purchases. In same cases, if you feel helpless to curb your spending — or even if you just need a little help to prevent splurging, a gatekeeper can be of tremendous benefit. My husband and I have an agreement not to spend more than $100 without consulting each other. It has worked well in our personal finances.

What are your thoughts? Do you have some sort of gatekeeper system for your personal finances?

Image source: Arpingstone on WikiMedia Commons

Post from: EveryJoe

Do You Need a Gatekeeper for Your Personal Finances?

At any rate, this is just more proof, I hope, that Americans are starting to look at their spending and saving habits and make some changes for the better. If anything good comes of the current financial crisis and recession, it will be that some Americans will do some introspection and change the way they think about money.

Do you think that this recession is causing people to re-evaluate their personal finances?

Post from: EveryJoe

State Lotteries Dropping in Popularity

Small purchases and your psyche

Whipping out the credit card for a small purchase doesn’t seem like a very big hit. I know that when I use a credit card for a large purchase, all I think about is how quickly I can pay it off. I worry about the big credit card purchase.

The small credit card purchase? Not so much.

Small amounts of between $10 and $75 don’t seem like such a big deal. You just put it on the card and forget about it. After all, it’s such a small amount. It’ll be cake to pay it back.

Unfortunately, these small purchases on credit cards tend to add up. Since we don’t really think about the small purchases, many of us don’t keep a running total of what we’ve put on these credit cards. So when the statement arrives, it can be a real shocker.

I remedy this problem by using personal finance software to track even the smallest of my purchases made on credit cards. That way, I can keep tabs on what I am spending throughout the month, and cut back where needed.

A friend of mine actually deducts what she spends on her credit card from her checking account. That way she can ensure that she does not overrun the money she actually has. Then she writes a check to cover the entire balance. She gets the reward points without paying the credit card interest.

Do you have any tricks you use to avoid over-spending with your credit cards?

image credit: sxc.hu

Post from: EveryJoe

Credit Cards: Watch Out For The Small Purchases