Reasons We Spend--Part One

One thing that has to be acknowledged is there are different levels of spending and frugality in this country. Some people celebrate the fact that they found a new comforter for $50 while others wouldn’t dream of sleeping under anything less than $150. I don’t think there are cooties on the less expensive comforter but the spenders think there are. Granted the quality of workmanship, materials used, the design all vary with the price but that doesn’t always mean if you pay more you will always get a better product. What you do get is other people looking at what you bought and a little boost to your ego because now they think you must be pretty successful for having such a nice bedspread.

It feels so good to look good to others.


There you are—successful, financially comfortable, enjoying the latest consumer products. Nice house, new car, well-dressed children—you’ve got it all. Or do you?
According to the Federal Reserve Board’s triennial survey of consumer finances:
Seven in 10 families own a credit card. Only six in 10 of them maintain a balance. But the average credit card balance increased 30 percent between 2004 and 2007 to $7,500. In 1989, the average balance was less than $3,000.

One reason credit card balances have grown may be because of that need to look successful. My late mother was a realtor and we saw this practice put to full use with some of the realtors she worked with. Some of her fellow realtors would buy a new car every year or so but their personal bank accounts never reflected the comfortableness for such an expenditure. They looked so good and that they felt would lead to financial success. It didn't always work quite that way.

Charging something to look successful will make you more successful.

WRONG!

What feels better? Spending money you don't have to keep up with the neighbors or thinking out your purchases and being able to sleep at night? You may not be under a deluxe down filled comforter but you just might sleep better under that bargain blanket.