The American Dollar
One industrious American family's focus on a financial goal of freedom. Through worldly personal finance education, here is our story.
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Our Story: Both my wife and I are 27 years old and have gone through financial hell and back. Now we are on track to financial freedom, however we are not financial advisors or professionals, just everyday people. Share our journey from a negative networth and email us if you have questions or comments! :)


Thursday, January 05, 2006

Birthdays vs. Savings?

Am I crazy? Seriously after reading all these pf blogs and doing financials, I think more and more that we as saving individuals are a rare breed. Honestly if I'm saving approximately 73% of our take home pay to reduce debt and invest, I find it more difficult to break away from the saving routine. Not to say that its a bad thing but let me explain the situation. This week we had a birthday that was a huge hit to the savings funds. The debate was that since it was a very very close friend that we should spend a bit more on a gift, however our monies (AFTER savings) would not cover this. I explained that the disciplined saver would find a way to stretch the money we did have for the gift instead of dipping into our ritual savings. The wife stated that we can adjust our budget for next month. I necessarily don't agree with that bc I hate being off track and "adjusting". Its the pricing on my good friend's gift that was unforseen. In the moment, we purchased the gift and attended his party. Am I crazy for spending for a lavish gift or am I just being stingy? The cost of gift: $200


Blogger Hazzard said...

I have VERY good friends and would never dream of spending $200 on them. We've just always negotiated relationships with our friends that said, "Hey, let's take it easy on the spending for each other and just buy small token gifts, rather than expensive ones." A lot of times, we just buy each other bottles of wine and a card etc. Some of these same friends do spend a lot on gifts with some of their other friends, just because they always have. It's almost like they feel that once they started spending a bunch on each other, they need to continue to do so, but I don't think that's the case. If they are good friends, having an open and honest conversation about it should be easy.

That being said, don't forget to live a little while you meet your financial goals. I tend to have the problem of always thinking about saving and increasing our net worth and sometimes forget to spend a little now. Luckily my wife helps keep me in check (although she's also pretty good about staying within our budget)
Great Blog!!

3:49 PM  
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