Published: Sunday, April 3, 2011
Personal finance advisers confess their splurges
Spending smart isn't about just maximizing value on groceries, insurance and phone service. It can also be about knowing when to splurge.
We thought it would be fun to ask folks in the frugality and money-advice business what they splurge on -- and what they would never buy.
Jeff Yeager, author of "The Ultimate Cheapskate's Road Map to True Riches" and "The Cheapskate Next Door":
"A cheapskate neighbor of mine is aghast that I pay a service $85 every couple of years to clean out my septic tank. To him, that's a splurge. He cleans his septic tank out himself, by the bucketful. And he wonders why we never have him over for dinner."
Other things Yeager will splurge on include high-quality flower bulbs, Bontrager bicycle tires, Dewalt power tools and Philadelphia cream cheese.
The list of things Yeager would never buy is long, but it includes a cell phone, bottled water, a gym membership and "green" household cleaners. "Do you know about baking soda and vinegar?" he asks.
J.D. Roth, author of the popular GetRichSlowly.org blog and the book "Your Money: The Missing Manual":
"My general rule is to spend a lot on the things that matter to me and to cut corners on the things that don't."
For example, he'll splurge on a top-of-the-line Apple Mac laptop "because it just works."
He'll also spend money related to fitness, on travel and on travel gear.
He doesn't like spending on cars, clothes and recurring expenses.
Kimberly Palmer, author of the book "Generation Earn" and writer of the Alpha Consumer column for U.S. News & World Report:
"If it will protect my child or keep her free of toxins, then I usually buy it," she said. She'll also splurge for craft beer, Lululemon yoga pants and the occasional fancy restaurant meal.
She doesn't like spending money on baby clothes -- she'll buy second-hand -- and shipping charges.
Teri Gault, coupon expert and chief executive of TheGroceryGame.com:
Gault said she sometimes won't skimp on shoes. "They absolutely have to be comfortable," she said.
She'll spend more for sheets, pillows, asparagus and organic yogurt. She'll also shell out for decorator accessories. She won't pay full price for meat, clothes or organic milk.
Dave Ramsey, author of "The Total Money Makeover" and get-out-of-debt guru on radio and TV:
"I love to treat my family to over-the-top vacations," Ramsey said. "I work hard, and I vacation with the same intensity. We love to go on cruises and ski the best slopes. It's OK to splurge on whatever your passion is as long as you save up and pay cash for it."
We thought it would be fun to ask folks in the frugality and money-advice business what they splurge on -- and what they would never buy.
Jeff Yeager, author of "The Ultimate Cheapskate's Road Map to True Riches" and "The Cheapskate Next Door":
"A cheapskate neighbor of mine is aghast that I pay a service $85 every couple of years to clean out my septic tank. To him, that's a splurge. He cleans his septic tank out himself, by the bucketful. And he wonders why we never have him over for dinner."
Other things Yeager will splurge on include high-quality flower bulbs, Bontrager bicycle tires, Dewalt power tools and Philadelphia cream cheese.
The list of things Yeager would never buy is long, but it includes a cell phone, bottled water, a gym membership and "green" household cleaners. "Do you know about baking soda and vinegar?" he asks.
J.D. Roth, author of the popular GetRichSlowly.org blog and the book "Your Money: The Missing Manual":
"My general rule is to spend a lot on the things that matter to me and to cut corners on the things that don't."
For example, he'll splurge on a top-of-the-line Apple Mac laptop "because it just works."
He'll also spend money related to fitness, on travel and on travel gear.
He doesn't like spending on cars, clothes and recurring expenses.
Kimberly Palmer, author of the book "Generation Earn" and writer of the Alpha Consumer column for U.S. News & World Report:
"If it will protect my child or keep her free of toxins, then I usually buy it," she said. She'll also splurge for craft beer, Lululemon yoga pants and the occasional fancy restaurant meal.
She doesn't like spending money on baby clothes -- she'll buy second-hand -- and shipping charges.
Teri Gault, coupon expert and chief executive of TheGroceryGame.com:
Gault said she sometimes won't skimp on shoes. "They absolutely have to be comfortable," she said.
She'll spend more for sheets, pillows, asparagus and organic yogurt. She'll also shell out for decorator accessories. She won't pay full price for meat, clothes or organic milk.
Dave Ramsey, author of "The Total Money Makeover" and get-out-of-debt guru on radio and TV:
"I love to treat my family to over-the-top vacations," Ramsey said. "I work hard, and I vacation with the same intensity. We love to go on cruises and ski the best slopes. It's OK to splurge on whatever your passion is as long as you save up and pay cash for it."
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