Comments on: Spending With an Impact

By: Mom/CEO of one busy house!

Mom/CEO of one busy house! — Fri, 22 Jan 2010 02:32:30 +0000

You have put into words what my actions have been these past six months!! Thank you! And I love your Time out before check-out, I do that every time I grocery shop, esp when I have my 4 little helpers with me:) The check-out peeps hate me I know because I’m always returning things, but I usually save . . . lots!

By: Wojciech Kulicki

Wojciech Kulicki — Tue, 19 Jan 2010 23:17:47 +0000

Thanks for the great examples from your personal life! They really bring this concept alive.

By: Abigail

Abigail — Tue, 19 Jan 2010 22:26:58 +0000

I think this is the key to long-term frugality. You have to pick and choose your battles. My husband and I have chronic health problems, so we’ll always have to order in a little more than we’d like. But it’s a sanity saver.

We also made the decision (painful, for me) to forgo about $250 of extra debt payments to invest in a heavy bag, stand and gloves. This gives my husband a way to vent frustration and anxiety. He’s been teaching me some moves too. Most importantly, it was something he had been asking for for three years. Since we won’t be completely out of debt for at least another year and a half, I realized I shouldn’t make his priorities always wait on mine.

Similarly, rather than use our rewards program points for day-to-day purchases, we’re saving them up for an iPod Touch for my husband. His ADD makes it hard to stay organized and focused. This will act as a PDA to help keep him on target. He can make to-do lists, track expenses and schedule out his whole day/set alarms for reminders. That’s something I’d be willing to spend money on, if we had to. Luckily, we don’t.

We all tend to say that we have different priorities. But it’s not just priorities. It’s making our money work for us. Thanks for the reminder!
Abigail´s last post: Should you correct others’ mistakes?

By: Wojciech Kulicki

Wojciech Kulicki — Tue, 19 Jan 2010 21:20:16 +0000

Thanks! I tend to think of purchases in terms of opportunity cost too, and we’ve gotten really good at making sure we consider this with every purchase.

By: Wojciech Kulicki

Wojciech Kulicki — Tue, 19 Jan 2010 21:11:10 +0000

That’s an awesome suggestion, and it’s probably the easiest approach for “mid-level” prioritizing (high-level being looking at long-term goals and low-level being point-of-sale decisions).

I think a balance of a lot of different strategies that address various components of your financial life is the best way to go…

By: Wojciech Kulicki

Wojciech Kulicki — Tue, 19 Jan 2010 20:40:12 +0000

Very true–sometimes, it’s “low-impact” we’re after.

By: ConsciouslyFrugal

ConsciouslyFrugal — Tue, 19 Jan 2010 17:46:35 +0000

I use a similar concept– “values-based spending.” But I like the usage of “impact” in your model. For the do-gooders among us, it’s a great word to make us stop and think before spending–what impact does this have on the environment, workers’ rights and my financial health?
ConsciouslyFrugal´s last post: Food, Inc.

By: Paul @ FiscalGeek

Paul @ FiscalGeek — Tue, 19 Jan 2010 17:06:38 +0000

I like the concept of High Impact Spending. It’s something my wife and I have considered carefully over the last year working our way out of debt. I have thought of it more as an opportunity cost. By spending this money what opportunities am I choosing to forgo? Getting out of debt quicker? Retiring early? Giving my kids a college education? Some consideration with every decision is a worthwhile exercise. My spending patterns to some extent define what it is I value, and I don’t want that to be meaningless trips to Target or another mediocre meal dining out. Once again Woj, nice post.
Paul @ FiscalGeek´s last post: The Career Diaries: Concierge, Front Desk, Doorman, Greeter

By: 2 Cents

2 Cents — Tue, 19 Jan 2010 14:13:30 +0000

I think your definition of high-impact spending is a good one. It would be interesting to know how many people look at their spending and decide that it doesn’t really fit their value system.

I use the budgeting process to ensure that our spending is high impact. I don’t want to put any money where I don’t want it to be, so I revisit the budget at least quarterly or whenever something changes in our financial life. Our spending is probably never perfectly optimized, but at least it’s as close as I can humanly get it.
2 Cents´s last post: How to Make a Budget: Your One-Stop Shop