The troubles of coming in under budget
November 16, 2012 11:14 AM Subscribe
I have $300. Do I buy a stand mixer, or dump it into my savings account? This is more about the principles of frugality/growing up than the specific item.
posted by itesser to Work & Money (42 answers total) 4 users marked this as a favorite
I'm in my late 20s. I have a decent job. I live on my own. I pay my bills on time and in full. I save 10% of my income automatically and have a 4-month emergency fund.
On the one hand, I'm due for a raise before the end of the year and want to be comfortable/established in my life. This points to buying quality tools and furniture and clothes. Things that will last.
On the other hand, I'm due to quit my job late next year and go to an expensive, private school. I expect to be shouldering 50k in loans before it's over. Financial aid depends in part on my portfolio.
Should I be dumping every spare dollar into savings in order to reduce my financial burdens for the 3 years I'm in school?
Or should I relax and let myself invest small surpluses in cooking equipment I'll use (really use!), new socks to replace the ones I've had for a dozen years, a wardrobe that makes me feel like a professional, and picture frames for my art?
I'm sure the answer is somewhere in the middle, but what should I be considering?
How did you approach this kind of financial quandary?