Last May, we held our annual garage sale on the same weekend that the Nintendo Wii was revealed. As I sat in my driveway, selling old stuff, I followed online coverage of the Wii on my laptop. I wanted one. “I'm putting this money in the bank and saving it to buy a Nintendo,” I told Kris.
I opened a separate targeted savings account at my credit union specifically for this goal. But I was wary of making a foolish purchase. I didn't want this to be an impulse buy. Using the principles of the 30-Day Rule, I told myself that if, after six months, I still wanted a Wii, I would buy it; otherwise I would use the money to buy Christmas presents.
Time passed. I added a little to my Wii account. (I couldn't justify adding too much when there are other much more sensible uses for the money.) Last week I decided that I did want the Wii after all, so I got up early Sunday morning to stand in line at a local department store. As I waited, I listened to a group of young men joke about how broke they were, and how glad they were to have credit cards so they could afford to buy video games.
I'm happy to say that I do not regret my purchase — the Wii is very fun. I'm even happier that I exercised discipline and planning with my money, and that I paid cash. After I bought an iPod on impulse recently, I felt guilty. I feel no such guilt over this purchase.
If there's some expensive frivolous thing that you desire — a pair of shoes, a new computer, a new bike — then plan for it. Save your money. Incorporate the item into your budget. When you make your purchase, do so with money that you have, and not with debt. It's possible to be wise with your money and to have a little fun at the same time.
Author: J.D. Roth
In 2006, J.D. founded Get Rich Slowly to document his quest to get out of debt. Over time, he learned how to save and how to invest. Today, he's managed to reach early retirement! He wants to help you master your money — and your life. No scams. No gimmicks. Just smart money advice to help you reach your goals.
I actually had a very similar story. I have been reading this site for awhile and have been putting some of the principles to practice. I too wanted a Wii when I started seeing all of the articles about it, so that was about 6 months ago. A little over a month ago they announced the price and Gamestop started pre-orders. I decided then that I still wanted one so I put a plan in place to get one. I saved money for the Pre-order and then began trading in games I never played anymore as well as selling several… Read more »
A few months ago I sold my old Sega Genesis, SNES, and some other miscellaneous video game systems and accessories I had around the house. All told I made around $300 (after eBay fees and such). It worked out perfectly for the Wii, although I’m planning to wait a few months in the hope that they come out with it in black soon. Until then, the money will just have to bide its time in the bank.
J.D.,
I like the way you think. Great Article. I think we can totally relate to broke guys waiting in line to put the video game system on the charge cards. Man some people just don’t get it.
I’ve got an Xbox 360. Did kind of the same thing. Too bad we can’t play online. You should write a review on the Wii. It’s not getting enough press.
– Bryan
http://www.BryanCFleming.com
Great article. I also waited many months to make sure that getting the Nintendo Wii was not an impulse buy. I ended up buying both the Wii and the PlayStation 3. I sold the latter on Ebay, making enough profit to more than pay for the former.
I’ve been doing something similar, though for a digital camera, not a Wii or playstation. After a brief stint of extra work in June, I set aside some money to buy a digital camera. Since then I’ve been trying to figure out what to get, but I’ve been so busy at work at that I’ll probably have to wait until after Xmas to make the purhcase. Perhaps there will be some good sales then….
I use a similar approach with music, which is my passion (hobby isn’t a strong enough word). I try to make it a self-sustaining habit, using the money I make from occasional gigs and teaching to pay for CDs, instruments, and other music-related expenses. Having this “self-sustaining” rule prevents me from impulse buying, and I’m a lot more careful about my choices. I keep track of my music-related income in Quicken, and once I’ve earned enough to buy some CDs or if I want to save up for a new instrument, I can keep track of it all there.
Bryan, I did write a brief review of the Wii, but I posted it elsewhere more appropriate. Slate has a review, as does PVR Blog. People are sharing their reactions at AskMetafilter, too.
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