Author Topic: "I'm frugal, really" - no, no you're not.  (Read 16983 times)

happy

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Re: "I'm frugal, really" - no, no you're not.
« Reply #100 on: January 04, 2018, 03:08:26 AM »
A bargain is not a bargain unless you need it!
Journalling at Happy Aussie Downshifter

kelvin

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Re: "I'm frugal, really" - no, no you're not.
« Reply #101 on: January 04, 2018, 08:55:33 AM »
A helicopter could be practical in certain doomsday scenarios like a zombie apocalypse . . . just sayin.
Just make sure you get the unlimited fuel variety... Or solar panels!

Our old Sea Kings are starting to be decommissioned.
http://www.cbc.ca/news/politics/sea-king-sale-1.4377408

golden1

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Re: "I'm frugal, really" - no, no you're not.
« Reply #102 on: January 04, 2018, 10:27:09 AM »
I got yelled at by my 22 year old coworker for debating whether I should buy a Nintendo Switch for my son for Christmas.  She was appalled that I would spend that much ($300) on Christmas presents for a kid.  That would be understandable if she hadnít bought a brand new Audi after getting a job offer, buys lunch every day and Starbucks, takes trips to Florida every day, has a trip to Dubai scheduled and has Mid 5 figures of student loans to pay off. 

PS: I decided not to buy the Switch.  But even if I had, it would not have been a big deal.  I just found it funny that Ms. McSpendy pants was trying to lecture me on being frugal.

dandarc

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Re: "I'm frugal, really" - no, no you're not.
« Reply #103 on: January 04, 2018, 10:31:53 AM »
. . .takes trips to Florida every day . . .
I do that too.  Granted, I also live in Florida so it is pretty cheap.

Dicey

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Re: "I'm frugal, really" - no, no you're not.
« Reply #104 on: January 05, 2018, 11:03:25 PM »
. . .takes trips to Florida every day . . .
I do that too.  Granted, I also live in Florida so it is pretty cheap.
Especially if you walk there.
I did it! I have a journal!
A Lot Like This
And hell yes, I am still moving confidently in the direction of my dreams...

Purple Economist

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Re: "I'm frugal, really" - no, no you're not.
« Reply #105 on: January 06, 2018, 10:51:28 PM »
The problem is the word "save" has two different, but legitimate, definitions. It can mean "putting money aside for later" and it can mean "paying less than full price" for a product.

No one would argue that putting money aside is a bad idea. And no one would argue paying less than full price is a bad idea. Both are legitimate and useful concepts. The problem comes when we confuse the two definitions. When you save money at the store, you are paying less than full price, which is a good thing. But it is not equal to putting money aside for later, but nobody said it was. I think most people can tell which meaning is intended, from the context.
I'm looking for X, and willing to spend Y on it.  The store has X for 1.5Y, but it's 1/3 off.  Did I save anything when I buy it?  That's my problem when they say here's how much you saved!!  I might have saved some of it, but I definitely didn't save the amount they are stating.

This is how I think now, the Mustachian way:
I really need X. The range of X products are priced from Y to X. When there is sale, you can usually buy an unfancy X for 1/2 Y. Therefore I am willing to pay 1/2 Y. In the shop, there is an X for 1/2 Y, an several other Xs for much more than Y. The one for 1/2 Y fits well and I buy it. I spend 1/2 Y, buy also save 1/2 Y, because for normal not reduced price is Y.

I have a different way of doing things. If I want something, I first think what it's worth to me and then set aside that amount from the budget.

If I think it's worth £50 But the price is £100, I don't buy it. If it comes on offer for £50, I buy it, but I haven't saved anything - I've paid what I consider a fair price.

If, however, I think it's worth £50 And it turns out they only cost £35 (even if that's "full price") then I've saved £15. I've paid £35 when I would have been happy to pay £50, and get to put £15 into savings.

There is a term for everything you describe.  It is consumer surplus.  Every single individual that purchases items operates this way.  The only difference between you and most people is that you probably have a lower valuation for goods and services than they do.

pegleglolita

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Re: "I'm frugal, really" - no, no you're not.
« Reply #106 on: January 09, 2018, 03:51:51 PM »
Talking robot ladies named Alexa are just one step on the way to that dystopian super-rad future where everyone has is androids.

I can't wait!  :D


Linda_Norway

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Re: "I'm frugal, really" - no, no you're not.
« Reply #107 on: January 12, 2018, 07:22:25 AM »
A bargain is not a bargain unless you need it!

Indeed! And many frugal people fall in the trap of forgetting that.

A thing in the same category is keeping everything you ever owned somewhere on your property in case you one time in the future need to use it again (hoarding). Eventually you would need a large house to store all this stuff. And maybe max 5% might ever come in handy again, and that is a very optimistic guess.

Dabnasty

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Re: "I'm frugal, really" - no, no you're not.
« Reply #108 on: January 12, 2018, 01:07:05 PM »
The problem is the word "save" has two different, but legitimate, definitions. It can mean "putting money aside for later" and it can mean "paying less than full price" for a product.

No one would argue that putting money aside is a bad idea. And no one would argue paying less than full price is a bad idea. Both are legitimate and useful concepts. The problem comes when we confuse the two definitions. When you save money at the store, you are paying less than full price, which is a good thing. But it is not equal to putting money aside for later, but nobody said it was. I think most people can tell which meaning is intended, from the context.
I'm looking for X, and willing to spend Y on it.  The store has X for 1.5Y, but it's 1/3 off.  Did I save anything when I buy it?  That's my problem when they say here's how much you saved!!  I might have saved some of it, but I definitely didn't save the amount they are stating.

This is how I think now, the Mustachian way:
I really need X. The range of X products are priced from Y to X. When there is sale, you can usually buy an unfancy X for 1/2 Y. Therefore I am willing to pay 1/2 Y. In the shop, there is an X for 1/2 Y, an several other Xs for much more than Y. The one for 1/2 Y fits well and I buy it. I spend 1/2 Y, buy also save 1/2 Y, because for normal not reduced price is Y.

I have a different way of doing things. If I want something, I first think what it's worth to me and then set aside that amount from the budget.

If I think it's worth £50 But the price is £100, I don't buy it. If it comes on offer for £50, I buy it, but I haven't saved anything - I've paid what I consider a fair price.

If, however, I think it's worth £50 And it turns out they only cost £35 (even if that's "full price") then I've saved £15. I've paid £35 when I would have been happy to pay £50, and get to put £15 into savings.

There is a term for everything you describe.  It is consumer surplus.  Every single individual that purchases items operates this way.  The only difference between you and most people is that you probably have a lower valuation for goods and services than they do.

I disagree, I don't think most people operate this way. It seems to me that people are more likely to put a value on something based on what they've been told it's worth rather than how much they value it. That's what branding is all about. Not to mention "sales" where the price of a product is increased so that it can be marked 30% off which is really the original price.

bacchi

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Re: "I'm frugal, really" - no, no you're not.
« Reply #109 on: January 12, 2018, 01:23:31 PM »
A helicopter could be practical in certain doomsday scenarios like a zombie apocalypse . . . just sayin.
Just make sure you get the unlimited fuel variety... Or solar panels!

Our old Sea Kings are starting to be decommissioned.
http://www.cbc.ca/news/politics/sea-king-sale-1.4377408

As a former flight WO told me, buy two so you can use one for parts.