Just an example:

In our washroom, we have a light fixture with 5 incandescent regular base lights that consume 60 watts each. Switching to CFL that consume 13 watts (equivalent to 60 Watts incandescent lights) would save 47 watt/hour per light. We use the washroom about 2 hours in the morning and 2 hours at night so about 4 hours per day (we only have 1 bathroom for the entire family).

Take the 4 hours per day, multiply by power saving and multiply by days in the month:

4 hours x 5 light x 47 watts/hours x 30 days = 28,200 watts or 28.2 KW. That is the amount of power saved.

If you use air conditionning during the summer, you actually need to multiply this figure by two (or more depending on the efficiency of your AC unit) to account for cooling cost associated with the heat generated by the incandescent lights (whatever energy is not converted to light is lost as heat).

Since electricity is about 10 cents per KW on average in the USA:

28.2 KW x 0.10 $/KW = 2.82$ saved per month by switching 5 lights or 5.64$ saved if you include the cooling costs.

as you can see, it is not unreasonable to save 10$(or even more) by switching to CFL lights. Of course, the more used a light is, the better the effect of switching it.

Another example:

In our rather large basement ALL the 12 lights are controlled by one switch (! poor design indeed!). We use the basement to workout 2 hours per day x 7 days a week. Switching those 12 lights to CFLs is a very good investment.

would Ramit say that it’s better to pick up a side job when you want to buy a laptop rather than decreasing your spending for the amount of time needed to save money for said laptop? Because that’s what I typically do. If I want an expensive splurge, I go earn the money. I finished teaching my college semester and then immediately subbed for three weeks to make the money for my new computer.

On the flip side of this coin, by spending that $10 you are supporting a small business owner, a charity, a consigner who is trying to declutter and make some extra cash, or a shop employee who depends on an hourly wage when you make that purchase (depending on what kind of thrift store you visited). You are also supporting a community institution–if no one bought those party dresses, the store wouldn’t be able to afford to stay open, and it would close its doors. You and your fellow neighbors wouldn’t be able to shop at a quirky thrift store anymore and would have to shop at another chain instead–more expensive, more resource-heavy, and probably more money that goes to a corporation rather than staying in the community. So think about that the next time you think about “splurging”.

I hate shopping with other people because 1. I don’t like others to know my shopping habits–how much things cost, etc. and 2. I don’t need anything.

Yard saling would be different, however.

I’ve always felt that the “just earn more” mindset was foolhardy. Almost everyone struggles with lifestyle inflation – the more you earn, the more you spend. Not learning to put a cap on your habits is a problem.

To this, you’ve added the critiques that 1) if we’re in the habit of buying small things thoughtlessly, we’re MUCH more likely to buy big things thoughtlessly, and 2) the big wins are rare, and you can’t always count on them.

I think Ramit’s trying to solidify a single financial platform, and I think it’s weakening his advice.

I don’t consider myself financially independent, but I still really value that freedom.

It looks like you *thought* she was saying that Mr. Mordecai is “someone who is susceptible to statements like, “Look, it’s $8.25 cents worth of fun.””

I don’t think that’s how it was intended, and your response was definitely out of line. Just my $.02.

$8.25 is a joke. It isn’t worth thinking about much less posting about. If you have to resort to an allowance of $10, then you have bigger problems than “fun” spending.

This brings us to today’s issue: splurges. It is very hard for us to imagine a financially sound household worrying itself to the point of guilt and self-loathing over an $8 party dress from a second-hand store. In such a case frugality has migrated into neurosis.

This, however, is all too easy unless you adopt certain strategies. “Mad money,” an “adult allowance” what have you. I think these terms are somewhat demeaning. Why not just have a “fun” budget, if you need a name for a line on a budget planner.

We used to worry about the cost of vacations (when there was really nothing to worry about as we were ahead of our saving goals). We solved the problem comepltely by adding a line in the budget for “vacations”. The problem shifted immediately from “Oh, God, $4K for a vacation we don’t NEED!” to “how can we spend out the vacation budget line?” This was a more pleasant problem, and it added nothing to our spending.

I use mine for video games, books, and computer-related items.
She uses hers for craft projects, movie tickets, and Slurpees.

I haven’t had the time to have fun lately, so I ended up buying some stocks (as a trial experiment). Everyone needs a little excitement, but making it an official number means that you find ways to cut corners (waiting for video games, using coupons for craft supplies), and generally spend less than the “buy whatever I want” plan. The adult allowance is an expense-limitting program, rather than increasing.

-Mike

It seems like bullying to me. I generally think of this as a nice community that I have enjoyed being part of. I’m disappointed.

But no, I’m not in dire financial straits. I do have a lot of this figured out. I didn’t realize that was a problem. If only folks with money problems are allowed to comment, then I do think that eliminates a good portion of the GRS community.

So, there, put a checkmark in your list of “life goals accomplished”. Now make sure to wear it and have fun or organize some sort of 20′s summer party and you’re gold.

Now, that party could be a splurge, so you’d better plan it– there’s always next summer if you don’t have time this one.

I think I need to buy a grill. Costco has some nice ones for $300 right now.

Should I splurge, O GRS?

Or should I save for a Minnesota-Toronto road trip?

Eeeehhhhhhh?

The trip is tax-deductible BTW. Oh I gotta get out of here and make some gin & tonics. The summer is terrible for my work ethic.

Enjoy your dress. Don’t wait for a special occasion, make the occasion special by wearing your dress. Maybe an at home date night or just because. The frugal thing is to get $16.50 of enjoyment out it

For me, an occasional splurge reminds me of how in control of my money I’ve become, and that psychological value is an important bonus beyond whatever pleasure I’d get from the puchase.

I recently bought a $35 used book. I’d read the book years ago and had wanted a copy for a long time, but used copies were running $50-$75, which seemed too high to me. (It’s an out-of-print title with lots of glossy pictures–thus the cost!) Was buying it logical? Did I need it? Probably not, but it felt good to finally own it and to know that I exercised financial mindfulness in acquiring it. And, with my finances in good shape, the splurge won’t ruin my life.

One of my problems is that when we do go out, it sometimes turns into a bunch of get togethers in quick succession. Take last weekend:
Friday – $16 dinner, $12 drinks
Saturday – impromptu “girls night out” $30 drinks
Sunday – $8 breakfast (a friend crashed after girls night), $20 in random shopping
Total: $86, or most of my monthly budget in 48 hours!

Now, this is definitely not typical for me. I can’t remember the last time I went out two nights in one weekend. Also, I agree that going with friends who enjoy shopping can influence decisions I would probably say no to if I was alone.

Do you ever feel like if you start spending, it becomes easier and easier to let money fly out the door? Maybe that’s why some of us keep such a tight grip on our wallets… worrying over every little purchase keeps the floodgates from opening.

That’s what I got out of it, at least.

It only took a week or two of “oh, I’ll just buy three bottles of that nice wine since I like it soo so much” or “Shoes. This week. Today”, and having to eat the last-resort stuff in my pantry, to convince me to be more careful about mindless splurges.

One mindfully purchased $8 dress a month–or a week, hey, why not, if that’s what floats your boat–seems fine to me, as long as you have savings and stuff. Which this person does.

The consequences of a purchase can be further reaching than just $8.25 out of your pocket. But who can ever foresee all the possibilities?