I’m definitely someone that likes gadgets. So much so that my boss even called me “a hardware type guy”. Back in college, I had a very frugal lifestyle in some ways – eat home cook meals, seldom go out, buy very little clothing. However, I bought expensive gadgets like PDAs, MP3 players, and golf clubs.
I didn’t think much of it at the time because I just thought that was how everybody lived. I didn’t really taste expensive food, so home cook meals were great. It still didn’t help my financial bottom line though, because I ended up spending all my money on luxuries.
Looking back, it was something I wish I didn’t do because I either could have lived a richer lifestyle or saved even more money. Just imagine if I didn’t buy all those PDAs, and or computers and bought stocks in Microsoft (MSFT), I probably would not need to work anymore by now
My situation is very typical though. There were many of my friends that did something similar. I’m not sure if they thought about whether or not it was the right choice but they did it nonetheless. They saved and saved and saved until they had enough money to purchase the next gadget.
When I started working, things were a little different because:
a) I had more cash coming in every month.
b) My thirst to buy things died down.
c) Not that going into debt is any good, but my credit limit got higher as well so if I really wanted to buy something, I could also buy it without much thought.
I’m sure many people can relate to this. How many of you live a otherwise frugal life but spend a huge amount of your money on luxuries? Is this trade off worth it? If not, how do you avoid the spending temptation?