Sunday, July 29, 2007

Things I Don't Skimp On

Generally speaking, my wife and I try to lead modest lives and not to waste our money on stuff. We would rather save and invest our extra income than drive a fancy car or buy expensive clothing. Nevertheless there are a number of things that we don't skimp on:

1. Our Kids - our oldest will be turning 5 this week. We will hold his birthday party at a local kids' gym. The party itself will cost a couple of hundreds of dollars and we are also buying him a Nintendo Wii as a present (if I can find one. Apparently, all the stores in our area are out). All in all we'll probably be spending about $500 on the party and the present.

2. Our Vacations - we don't go on many vacations, but when we do, I have no intention of counting pennies. It's not that we'll stay at the fanciest hotels, but we'll stay somewhere nice, eat at good restaurants and get a few souvenirs.

3. Our Home Entertainment - with three kids you don't get to go out much. With that in mind, we pay a pretty penny for our cable and Internet packages, we subscribe to Netflix and we own a high-end Plasma TV. Next month I hope to also improve our sound system.

I guess what I am trying to say is that personal finance is all about making the right trade-offs, and by right I mean right for you. In my case, I am content with driving a dinged up Geo Prizm 1997, if I can spend some money on my next ski weekend.

As long as we are saving enough for our major life goals, such as retirement and education for our kids, I don't feel bad spending some money on the things that really give us pleasure.


squire said...

One of the best things about saving is that you know you can buy something but you choose not to.

Michele said...

I agree that you shouldn't skimp on your kids, but no 5 year old needs a wii. How about a bike or something to encourage him to be active? You can leave the video games until he has developed his interests more and really wants one.

Mom2fur said...

We probably pay too much for our cable TV and internet service, but we're like you...we don't go out much. I justify the cable bill each month by realizing we rarely go to the movies, or the amusement park, or whatever. Mine are older now (ranging from 17-24) but I still prefer to stay home on a Saturday night.
We don't go on many vacations, either, but I'm with you...I'm there to have fun, not pinch pennies. I save up for my vacation spending money! And then I enjoy myself without an ounce of guilt.