A Case for Buying What You Like, Even If It’s Expensive
Most people believe that personal finances are all they need to limit themselves and never succumb to the temptation to spend. Sure, there is room for that, but there are also arguments for buying things that you love. Financial expert Carl Richards refutes this version of The New York Times.
Richards makes a statement that you won’t hear from many financial experts: It’s okay to buy things you like. It would even be nice to buy things that you like.
For example, I once discussed with a reader the myth of buying a home as an investment . In the end, the reader acknowledged that buying a home was overvalued as an investment, but said that I hadn’t considered the emotional factor associated with it: love and pride in your home. This is absolutely true. Assuming you’re on the right track and not spending money you don’t have, what’s wrong with buying something just because you enjoy it?
We often feel we must justify these purchases. We call them guilty pleasures or pretend to be investments. But buying expensive things that you love is okay, and Richards uses a personal example. He talks about an incredibly expensive bike that he really wanted, but shrugged because it was too expensive. For several weeks he was looking for something similar and tried to dissuade himself from biting the bullet. He’s writing:
After going through the painful process of searching, comparing prices and looking at models that I really don’t need, I pulled the trigger. After a few weeks of a shopper’s remorse that sounded more like horror, I realized it sounded crazy. Buying this incredibly expensive bike was one of the best financial decisions I have ever made … It was a fantastic, rational and smart financial decision. And I know this is contrary to everything you’ve heard from all personal finance consultants. They always tell you how to save money, how to cut costs, how to buy cheaper … I say this is a short-sighted message that we need to change.
Honestly, there’s a reason these experts focus on frugality: because there are probably more overspending out there than resellers. But that doesn’t detract from Richards’ point of view that buying expensive things that you love is not inherently wrong . This is actually normal, and sometimes it makes more financial sense. If you like this item, you would rather keep it. If you keep it, you will be more inclined to use it for years to come.
Money is simply a tool for getting what you want out of life, be it financial security, a home, or a new bike. Thrift is also a tool. This will help you find more money to spend on what you want. The idea is to use both methods that will benefit you the most now and in the future.
To find out more about what Richards has to say on this topic, follow the link below.
The Financial Benefits Of Buying What You Love | New York Times