Put those $300 in your emergency fund. Stop spending money you don´t have. Interest free credit is great, but using it when paying cash is not an option is still just a simple fast gratification trick. One should have cash for replacing a broken fridge. In your situation (on the right track to a stronger economy) the fridge on credit card might be fine - but a new sofa? Thats luxury consumption with money you don´t have.

I know I sound irresponsible, and for the couch (which is a want, and not a need) we may have been irresponsible, in that we purchased it before we had specifically saved for it. Technically we do have the money. We have an efund, which I put $100 a month into, and we will use to pay off the balance on the fridge -(putting it on the new card gave us an additional 15% in savings; it would have cost more money if we paid directly in cash).
For the couch, you have a point. we talked ourselves into that one, because we have a "house fund." We were originally going to use it to renovate the attic, but since we don't have enough money for that, we started talking about using that money instead to make the first floor or our house more user friendly. But in retrospect, that does sound like a rationalization, and we should use those two funds for either a) genuine emergencies, or b) real home improvement/repair costs (not decorating!). I do
want a sleeper type couch in the tv room for when family visits, and also furniture to make the office more useful. But we will have to wait until we have the money for it.

After the transfers, with both the fridge card and the general cc paid off; the house fund will be a little over 14K, the efund will be at 11K.

There will still be 1300 on the "couch" card. After the holidays, we will need to allocate $160 a month for the next 8-9 months, to pay off the couch in the remaining interest-free time.

I sometimes don't get this attitude. Surely, for a lot people, debt is a toxic thing. But, it can also be an excellent tool. And for those people, it is surely dangerous to play this game.

And while we're on the topic, what is "luxury" consumption? PG1 seems to be on their feet and have some funds. Are we to forgo the finer things in life, such as a new couch, if other goals aren't met? They have the money, it's a hiccup for their savings goal. They're not circling the drain.

Thanks Bichon, I appreciate the other perspective. I was someone that for a long time was more on the extreme end of being frugal. Now that we are loosening up, hard to know if loosening too much? So I appreciate hearing all perspectives.

I think it is important to remember what we are saving for. We are always balancing gratification today for gratification tomorrow. And we never know how or if we will be able to enjoy the things we want to in the future. For that reason alone, I tend to side more with enjoying life today than tomorrow. Of course, I have a more than healthy nest egg and I don't really even need to worry about major purchases, as my regular cash flow will cover it. So, it is much easier for me to say that than perhaps some others...

Yes. Money is for spending. The only questions are WHEN to spend it and on what. Some people spend their money on interest so the can get gratified sooner. Other wait and save so they can spend more on the gratification itself or buy more gratifications. I'd rather enjoy life with a few luxuries now and then while living modestly most of the time. We all have things we like to spend money on and things we don't think are worth it. But those are personal choices.

Debt is consuming your future income. Most often it comes with a cost (interest) but even if it don´t - what´s the rush? If you can invest it and gain more money than the cost, or you need it in order to obtain an income - fine. How does a sofa (when you have an old one) fit that description?


Buying things you don't need with money you don't have to impress people you don't know?

I don't necissarily agree with this. Sure it is buying things you don't need, but the last two points in your answer are not always the case. Food is a need, but I would consider the filet mignon I had the other night to be a "luxury consumption." I didn't need it, but I did have the money for it and the only thing I was trying to impress were my taste buds.

I agree with you though. The quote was more like "semi true" joke. Buying things you don´t need is luxury. I don´t see this changing just because a huge middle class in the western world would have to define 2/3 of their consumption as "luxury". In my point of view the definition of "western middle class" might as well be "the ability to use large portion of their income on luxuries". This is something good - we should be glad to belong to this group.

The problem, and what this forum is most about, is when you not only consume a large part of your income on luxuries, but more than your income (todays and future).

Still, even though I might not define a sofa as a luxury, buying a new one when the old one "still works" undoubtedly is. I did that a couple of years back. With cash.

Well, depends on what you would call "used". One of our dogs died in 2008, and before dying, "hung out" on the couch quite a bit. We did replace the carpet at that time, but not the couch. I do not think people who use the couch would know (it is amazing what upholstery cleaner can do), but at the same time there was fabric staining we could not get rid of, and WE knew.
We had alot of other financial commitments going on at the time, so the couch was not a priority. And it was still structually sound.

But when discussing plans for the house in the future and realizing couch replacement was an option, my husband and I both agreed to do so. And if you knew my husband, these are not the kind of purchases he readily agrees to.

As far as luxury versus regular purchases, one could make the argument that virtually all of western culture consumption is luxury (one needs shelter, but not to own one's home, etc). So I don't find that distinction very illuminating, and it can get very "judgey" quickly (your necessity may be my luxury, or vice versa). But it is a good rule of thumb to not buy something before one has the money in the bank for it.

I would not hesitate to say that a sofa full of dogs urine could be considered as "consumed", and a new sofa could be bought without lebeling it as luxury consumption.

The cost for express write off of the sofa would end up in the "dog account". Also a luxury for anyone but shepards and blind people by the way.

(Doing the Snoopy happy dance). Not including presentations (which number around 16) my publication count has hovered at 19, for a long time. While I always thought it would be nice to have hit a nice round number (like 20), it didn't look in the cards, as I have moved from doing my own research to working on other people's research where I may or may not recognized paper-wise). But, a manuscript that is from graduate school has finally been accepted for publication! A long story, where it was a seperate project that wasn't even part of my dissertation, so I never had official time to work on it, either in graduate school or on any jobs after that, coupled with the fact the only other author has two full time jobs and lives on another continent, made it say, a little difficult to work on. But we perserved, and it will be in print!
And another paper in where I'm listed as author got published this fall, so the official count is 21.
While the count is arbitrary, the accomplishment I feel from seeing the "impossible" graduate school paper through, is real.

(A favorite quote) Understanding the nature of desire- Chuang Tzu

When he tries to extend his power over objects,
those objects gain control of him.
He who is controlled by objects loses possession of his inner self...
Prisoners in the world of object,
they have no choice but to submit to the demands of matter!
They are pressed down and crushed by external forces:
fashion, the market, events, public opinion.
Never in a whole lifetime do they recover their right mind!...
What a pity!

Our stove has had problems with the handle to the oven door coming off. Over the past year or so, husband has done various fixes to it. A few days ago all the retrofitting wore out and the entire exterior front of the oven door came off (door handle, trim, and front sheet of glass). The oven is less than 10 years old.
Part of me feels discouraged. It makes me wonder is this a consequence of buying appliances in the low middle end? All we want is something reliable and functional (don't need the bells and whistles). Is it too much for us to expect a door handle not to fall off? I sound like an old person but I swear appliances used to be more sturdy.

Husband wants to fix it. So, went to Sears repair site and ordered the replacement parts. It is crazy how much these parts are marked up ($50 for handle, $50 for trim, $7 for a washer)!!! The total with shipping came to $185 and there are 2 screws hubby will need to match at a hardware store. But, if this works, we would have saved over buying a new range and kept one more thing out of the landfill. I want to have a holiday party that is planned before the parts arrive, so it will have to look unslightly until then.