Limited Spending Desires

[Major Tom]

Great and thoughtful responses - so much more interesting than anything I read on my Facebook account . Please forgive me if I don't reply to each post.

HFWR - I don't think we have a theater that cheap here (SF East Bay). I remember going to a second-run theater in Sparks, NV about 25 years ago, and that was $2 - $3 back then. More recently, there was a theater in LA when I lived there about 5 years ago that was $3, but it has since closed down.

2soon2tell - agreed about the middle road.

FIREd - I am currently living vicariously through you, with your new ownership of an X100S! You are perceptive - I believe there is actually some denied gratification going too. Your choice of the word puzzling almost took me aback, as that is the effect I think I have on others from time to time, in the way I can change from strong enthusiasm to fairly indifferent in a short space of time.

NWBound - Well what can I say? Jambalaya sounds so good right now. I should know better than to post when I'm hungry.

daylatedollarshort - Good point about having to buy some stuff eventually. I am not a complete Luddite though. I do love the modern world we live in, and like to support the economy by buying products from which I will get much value and pleasure. Of those products and services, I think my computer and internet connection rank pretty close to the very top. Thanks so much for the Discover and Go tip. I wasn't aware of that, but just signed up with my Oakland Library card. My SO has always wanted to go to the Asian Art Museum, and I wouldn't mind another visit to the California Academy Of Sciences. Thank you.

Retire2013 - not quite true, as I did indeed buy an engagement and wedding ring once. However, you are right on the mark with your assessment of my current dyed-in-the-wool bachelor status. My ideal relationship involves SO and I living in separate places, which is the arrangement now.

Jager - Oh my gosh - Leica gear. The frugal side of me just went into cardiac arrest! But yes - there is a fine line between prudent frugality and self-denial. Perhaps I do need a shrink.......(but they're too darned expensive )

H2ODude - I'd take you up on that offer were it not for the fact that the X100S seems to offer a very worthwhile step up over the X100, particularly in the areas of the menu arrangement and the AF.

Walt - Good point. As you say, the worst thing that can happen is I sell it and lose a few hundred. Actually, the worst thing that could happen is that I love it and am out ~$1650

 

[daylatedollarshort]

Thanks so much for the Discover and Go tip. I wasn't aware of that, but just signed up with my Oakland Library card. My SO has always wanted to go to the Asian Art Museum, and I wouldn't mind another visit to the California Academy Of Sciences. Thank you.

You are welcome. I love the Asian Art Museum. After DH left the megacorp job, the Asian Art Museum was one of our first new found freedom, week day outings. We saw a traveling exhibit called The Splendor of India that included jewels and a silver carriage -

MAHARAJA – The Splendor of India’s Royal Courts, at the Asian Art Museum | San Francisco Sentinel

You can also collect library card from surrounding cities and sometimes they have a different set of Discover and Go partner attractions to pick from.

The NARM, ROAM and AHA memberships with a Berkeley Garden membership are a good deal, too. It is $125 but then you get in free at over 700 museums and 270 gardens in the Bay Area and beyond -

UC Botanical Garden at Berkeley ::: Garden Membership

Throw in a couple of Entertainment books on sale for half price restaurant meals and some Goldstar event tickets now and then and we're set for entertainment for the year without spending much money at all.

 

[daylatedollarshort]

Walt - Good point. As you say, the worst thing that can happen is I sell it and lose a few hundred. Actually, the worst thing that could happen is that I love it and am out ~$1650

Have you thought about putting your pictures up on site where you could earn royalty income -

5 Sites Where You Can Sell Your Photos

Maybe you could have a self funding hobby or even an enjoyable side gig. If you have a photography business your equipment may be a tax deductible business expense.

 

[Ronstar]

I know what you're going through Major Tom. I've been wanting to upgrade my camera for a few months now. I keep thinking that I'll pull the trigger if I scrape up the money, but still haven't even after paying the taxman less than expected. Now I don't expect to upgrade my camera for a few years until I get my skills to the level of the camera. Same thing in other hobbies - I've created a few woodworking jigs/ workarounds that have saved me from spending hundreds of dollars on equipment that I can do without.

 

[Valen]

One of my fears about retiring was would I be able to start spending some of the money I had saved over all those years. Saving my money was always so natural for me, especially when I started thinking about retiring early. I knew my goal was to enjoy retirement but I didn't really know how to spend money like that. My DH and I now have a "spending plan." We have a pot of money that is just discretionary money and we take 4% (always 4%) out each year (based on Jan. 1) and spend it throughout the year. This year we're getting some new French doors and windows for the house and maybe some landscaping. At the end of the year if we have money left over in this fund then we can be a little more generous to the kids/grandkids, fund college accounts, larger donations to charities, whatever. Of course, if it's a really bad year financially then I assume we wouldn't take as much.

We came up with this plan when my father-in-law died. Turns out he had a sh*tload of money saved/invested and wouldn't spend a dime! No one knew. He lived with my SIL and never contributed to her household. Everyone always pitched in to help pay for his share of family vacations and holidays. He told us how bad he felt that he didn't travel more when his wife was still alive. It's nice that we've inherited a nice chunk from him but we really wished he would have enjoyed it more while he was alive.

 

[ItDontMeanAThing]

Thanks to the OP, you helped clarify my current struggles on the same issue, one I've been slowly modifying since the mid 80s.

> Unspent money represents potential to me - and I like the thought of all those possibilities just sitting there.
That value was firmly wedged into my brain by my parents who entered their teens in the Great Depression.

> I begin to cease feeling the desire to actually do it. ... This process doesn't leave me feeling unhappy or frustrated.
For me what killed the want (desire is too strong of a word) was a rational assessment of how much use or fun I'd get out of the purchase.

Then 3 wake up calls began pulling me away from this value system.

First was my passion for sports, specifically snow skiing and off road motorcycle racing. Except for safety related items, I started with low cost equipment which was unfit for my skills or obsolete. Friends said equipment was holding me back. I took their advice, skills increased. More importantly, my enjoyment increased because I was no longer fighting my gear.

ER meant making taxable accounts last. Spending less was embarrassingly easy. Second wake up call was the January 2013 version of the chart below. It tracks what I could and did spend per day without emptying the taxable account. Result was a 35% spending increase over the previous year, mostly on travel.



The third, and maybe final, wake up call was realizing I turn 60 in a few months. I ERd so I could enjoy retirement while most of my body still worked most of the time. I've wasted too much time because of reluctant spending. Let it begin - in a considered but fulfilling manner.

First target is an Olympus OM-D camera and some high quality lenses. Hong Kong is said to be the best place on the planet to buy new and used cameras and lenses. Round trip airfare is less than $300, visiting is on my bucket list and Olympus has a global warranty ....

 

[livingalmostlarge]

I am one of those people seeing those movies. In fact I just went to see Winter Soldier. I love blockbusters on the big screen. But now time is more important than money since I can't get away rarely to see a movie. Last one was Avengers? Was that last may? Date night is far and few between so I try to do something that taking my kids too impossible. We never watched movies in theaters before kids. Always rented at home because we figured we'd save the money. NOW we can't watch with kids at home and we rarely watch tv/movies period. So color me indulgent.

 

[photoguy]

I have the same butterflies/second thoughts as Major Tom as I'm coming up to a major purchase (usually photo or computer gear). I also do extensive research and often delay the purchase for months (even years). This is driven partly by my fear is that I'll run out of money, but second biggest fear is that I will be too frugal and become a miser not willing to spend on anything that brings enjoyment.

However, I realized a couple things:

(1) Even though the equipment is expensive, I use these items all the time and get many many hours of enjoyment. 2k for a laptop is a lot, but amortized over the time I use it, it doesn't turn out to be much.

(2) I don't spend much money on anything else. I have no interest in fancy cars, expensive wines, luxury hotels, gourmet dinning, etc. This means that the very few things I want, I can purchase them without blowing the budget.

(3) I don't like to see numbers go down in my bank accounts after making a big purchase. So I play an accounting/accrual game where I start building a reserve for planned purchases which I add to monthly. When I make the purchase it just comes out of the reserve and doesn't impact the net worth number.

(4) I've also coveted the x100s. But I've delayed getting it because I'm not currently in a location that's great for street photography. I'm also waiting a bit because I want to see how the full frame mirrorless (e.g. sony A7R) and upcoming high MP full frame cameras from canon evolve. I suppose Fuji will also release a successor as the x100s has been out for a while.

(5) I always sell my old camera / computer gear when I upgrade. For computers and digital camera bodies, I can usually recoup anywhere from 30-50% of the purchase price even for stuff that is 5 years old (apple computers have high resale prices). For lenses, I've actually sold some for more than the purchase price after several years of use (pro-grade lenses keep their value exceptionally well, kit lenses however don't sell for much -- perhaps 50%). This significantly reduces the overall cost of ownership.

 

[Major Tom]

Have you thought about putting your pictures up on site where you could earn royalty income -

I casually considered it a few years ago, but the amount of thought and effort I would need to put into it vs the amount of income I'd be likely to receive would make it not worth it to me. It would feel too much like a job!

photoguy - Your points struck a chord. Like you, I have few other items of significant expenditure. I derive a great deal of enjoyment and pleasure from my cameras. The last one I bought was in 2005 and I expect this next one to also last me quite some time. I also play the accounting/accrual game. Hey - whatever we need to do to justify the purchase and fool ourselves eh?

I have enjoyed reading every single post in this thread.

 

[martyp]

When I was growing up I would ask my mom for something and she would say, "Let's wait until next week and see if you still want it". It was a perfect lesson in delayed gratification that I still retain to this day. The general thoughts about purchases is that buying stuff ultimately won't make you happier. Purchasing experiences can or will lead to happiness.

So is buying your camera buying stuff? or is it buying experiences? Going on vacation is buying an experience. However, I've found that a camera can give you an excuse to travel places in which you would take pictures. My motorcycle gives me an excuse to explore parts of the Bay Area I've never been to before.

Since you are in Oakland I will say that there are lots of free events on the UC Berkeley campus. Check out their events calendar.

 

[Major Tom]

Since you are in Oakland I will say that there are lots of free events on the UC Berkeley campus. Check out their events calendar.

Funny you should say that. My SO just scored free tickets from the radio station on the UC Berkeley campus for us to see a classically-trained Japanese pianist by the name of Yoshiki play at the Davies Symphony Hall on Monday.

 

[Mo Money]

Tom -- I do a lot of woodworking, and occasionally a good tool can make all the difference. While I know little about photography, it may be similar to playing with wood: great tools can sometimes make a difference.

But when I want to buy a new tool, I sometimes conclude, after a good bit of reflection, that I just want a new toy to play with. If I can use one of my current tools to get the same end result using a bit more work/patience than the new toy might require, I stick with the old tool.

If you can take an exquisite photo with your current camera(s), will the new menu on the Fuji camera and the extra megapixels really materially make you a better photographer? Maybe you should focus on using the tools you already have to meet the challenge of making a few great photos, rather than spending more money.

To reward yourself for not buying the camera, go to the movie!

 

[frayne]

Tom, I think it is pretty much a given that most people on this forum go through similar type emotions when it comes to spending money on things one wants but doesn't necessarily need. For some strange reason I get as much enjoyment out of researching and looking for the best deal for any kind of discretionary purchase. Once I find what I am looking for I usually wait two weeks, and after that time if I want it, I buy it. Fortunately my toys are relatively cheap as compared to others.

 

[robertplattbell]

An RV or a boat is something one should definitely do a lot of soul searching before buying, particularly if it is new. I just read the following entry of a blog that was mentioned by a poster on a recent thread. It should be a required reading for boat and RV buyers.

See: Living Stingy: Hobbies Run Amok!

and this: Vehicle Madness - Knowing When to Unload

The above said, I have really enjoyed my second-hand class C motorhome. People said I was crazy to buy an RV + toad after having bought a 2nd home which cost more than my main home. However, for the motorhome I paid only a bit over 1/4 of its new price, and it had a mere 25,000 miles.

Once I discovered that I liked this traveling mode, I thought often of upgrading, but in the end decided against that. What I already have works great, turns out to be of the right size for me (25'), and I know it inside and out and already spent a few $K for upgrade and customization.

Yes, sometimes we have to make a jump and spend some money. Nothing ventured, nothing gained.

This reminded me that I need to change out the coolant in that RV and its engine oil. The travel season is but a month or two away. Spanking new set of 6 tires was already installed.

Thanks for the links to my blog.

To get back to the OP's conundrum regarding the $1600 camera, my advice would be to wait around a bit and look for a used one. If it is a nice camera today, it will be a nice camera tomorrow, but only $800 by then.

I wanted to try making some videos using a GoPro camera, but they were very expensive. I found one on eBay for $200 (GoPro Hero 2) with all the accessories, which is where the real costs are. I made a few videos on YouTube and had fun with it. I might end up putting it back on eBay as I realized that I am no Martin Scorsese. Probably get a hundred bucks for it.

See:

Now, granted, it was "last year's model" and all, but it worked OK, and frankly, it satiated my interest in making videos. I am not sure spending $500 or more would have made the experience more satisfying.

I have seen again and again where people decide to take their hobby to the "Ultimate" level and end up unhappy as a result. There is a law of diminishing returns, and the more you spend produces less and less satisfaction. You don't have twice as much fun in a boat or an RV that costs twice as much. In fact, they can be less fun, as you worry more about the costs, depreciation, and getting a scratch on an expensive toy.

Sometimes less is more. I'd rather use my money to LIVE (and not have to work) than to own things.

Possessions are slavery.

P.S. - when it comes to RVing, towable RVs (trailers) are far less costly than motorhomes. Anything with a motor in it depreciates by about 50% every five years. A well-maintained trailer, on the other hand (bought used) can hold its value for many years.

[mod edit]

If the theme of this site is "early retirement" I can only say that owning THINGS is the largest obstacle for most folks in seeking early retirement.

And I say this based on experience. [mod edit] I had two homes, four BMWs (three of them convertibles!) two boats, an antique tractor, a pickup truck, a 1948 Willys Jeep, and a host of other "stuff" that was costing me a lot of money (not to mention recurring subscription-service charges like cell phones and junk).

I was making "good money" (the vaunted six figures) but not getting anywhere. And my retirement savings was nowhere near enough to sustain such a lifestyle in retirement.

I realized it was a see-saw. I could cut my lifestyle and retire on a lot less money, or run the hamster wheel until I was dead, trying to pay for it all. And I realized that owning "things" wasn't making me happy, but in fact was a horrendous amount of work.

[mod edit]

Today, we have one house, no boats, two cars (one still a BMW convertible, now 15 years old!) and our little RV (which is also 15 years old!). We can't afford to retire completely just yet, but we do take about four months off a year to explore in our little camper.

It is so much nicer than owning "stuff".

So, buy the camera - but look around first and see if you can find someone else who bought it first - and decided they weren't using it as much as they thought they would. Chances are, you'll get that, with a camera bag, lenses, tripod, accessories, for about half what you'd pay for the camera body alone, new.

And it if turns out that owning a fancy camera wasn't what you thought it would be (and it will likely turn out that way) at least you aren't out much money....

Good Luck!

 

[Ally]

I study things I want forever, then when I get some unexpected money, I still delay buying it. I put the cash into savings instead. I've been doing this for years over getting an IPad. I couldn't pull the trigger. Imagine my delight when my husband won one at a conference and gave it to me! It's a new IPad Air. Lucky, I waited.

 

[Major Tom]

If you can take an exquisite photo with your current camera(s), will the new menu on the Fuji camera and the extra megapixels really materially make you a better photographer? Maybe you should focus on using the tools you already have to meet the challenge of making a few great photos, rather than spending more money.

To reward yourself for not buying the camera, go to the movie!

Mo Money - there is one thing this new camera can do that my current one can't. Due to it's leaf shutter, it can flash synchronize at much higher shutter speeds than can a focal plane shutter. This makes it possible to shoot outdoors in sunlight at 1000th sec and f/2 with a small handheld flash, opening the door to some fun creative possibilities. You're right that my existing camera is perfectly capable of taking great pictures, but this one is much more compact. I'm getting fed-up of lugging the heavier gear around with me and think that a smaller, lighter camera will result in more photos, as I'll take it with me more often.

I am under no illusions that the mere act of owning it will make me happier, but I think it will lead to more fun and creative outings and encounters. If (or when) I purchase it, I'll probably end up selling the old camera and lenses, significantly reducing the effective cost. Given that I get a lot of use and enjoyment from my camera, I don't think this is an imprudent purchase.

However, having said all of this, it could well be another 6 months or more before I pull the trigger. Hard to say whether I'll buy it next week or next year. As stated in my OP, I am more concerned about my well-developed ability to talk myself out of buying things, than the other way around.

 

[FIREd]

I'm getting fed-up of lugging the heavier gear around with me and think that a smaller, lighter camera will result in more photos, as I'll take it with me more often.

I am under no illusions that the mere act of owning it will make me happier, but I think it will lead to more fun and creative outings and encounters.

This has definitely been the case for me. Hunting for worthwhile shots is what makes photography fun for me. And when the equipment does not get in the way, it is even better.

 

[robertplattbell]

It took me 50-some-odd-years to learn that most of us will earn over a million dollars during our lifetime, and yet most of us will squander it on "stuff" like a fancy stereo, or a big-screen TeeVee, or a smart phone, or cable television or whatever.

Little bits, here and there, add up, and over time, we all dissipate wealth instead of saving it.

A good friend of my Dad's retired at age 40 - back in 1970. How did he do it? We worked for ARAMCO in Saudi Arabia and made a boatload of money for a few years - and banked it all. That was the first part.

The second part was SPENDING - he was cheap as all get out. He drove VW Beetles because they were cheap, not to be stylish. And he lived frugally and was able to "not work" the rest of his life as a result.

The rest of us trade financial freedom for bling - the beads and trinkets that the European settlers used to finagle Manhattan from the Indians. We lease a new car, not realizing it means we have to work a year longer before we retire. We get a fancy new smart phone with a data plan, not realizing that $100 a month, over 30 years at 7% interest comes to $121,287.65 missing from our 401(k) plan.

And a lot of this junk is just that - things our ancestors did without, just fine. I have no cable TV, no smart phone. Combined, that takes $2400 out of my annual budget, and that's a lot.

A $1600 camera is a lot of money for anyone in the middle class. But hey, we've all bought things like this, put it on a credit card, and kidded ourselves that we could "afford it" right? And when the credit card maxes out, we refinance the house and roll over the debt for 30 years. There's the financial meltdown of 2009 in a nutshell.

So, I applaud the OP for agonizing over what might seem to be a "trivial" purchase to some folks. $1600 is a lot of money. Heck, I've bought cars for less than that!

Find one used. Maybe eBay? If you really have to have one, that is.....

 

[frayne]

I think it all has to do with balance and perspective. I worked 32+ years for a major oil company and although I didn't live all that frugally, I didn't go overboard on material things either. Have never paid a penny of credit card interest, paid for my last two homes with cash and have been debt free for well over fifteen years. Dropping $1500 for a camera that I want, is simply no big deal. I think some times we all suffer analysis paralysis deciding on what is best to do. The bottom line is we are all nothing more than biological life forms with a limited time in this physical world and to stress over material purchases is really kind of silly in the over all scheme of things. Just my two cents.

 

[FIREd]

I think it all has to do with balance and perspective.

+1. Surely there is a middle ground between spendthrift and miser. And most of us here seem to have found it.

 

[robertplattbell]

I think it all has to do with balance and perspective. I worked 32+ years for a major oil company and although I didn't live all that frugally, I didn't go overboard on material things either. Have never paid a penny of credit card interest, paid for my last two homes with cash and have been debt free for well over fifteen years. Dropping $1500 for a camera that I want, is simply no big deal. I think some times we all suffer analysis paralysis deciding on what is best to do. The bottom line is we are all nothing more than biological life forms with a limited time in this physical world and to stress over material purchases is really kind of silly in the over all scheme of things. Just my two cents.

Well, if you have tons of money, spending is never an issue. Or is it?

Even when making the vaunted "six figure salary" much of one's income is taken up with mortgage, 401(k) savings, taxes, health insurance, auto expenses, kids college fund, etc. Most folks would be lucky to have $10,000 left over at the end of the day. $1600 for a camera represents 16% of disposable income for someone in that situation.

And the situation we are talking about is the OP's. Sure, maybe you can afford the camera, but how does that help the OP, unless you want to gift them one?

I live on a retirement island. Yea, my house is "paid for" and I have no credit card debt, either. But I would have to think long and hard about spending $1600 on a camera.

Why? Because I see my older neighbors and how that works out when they are 70 or 80 and run out of money. It ain't pretty, let me tell you.

Funny thing, when I was a kid, my Mom gave me her old German Leica camera and I took a class in B&W photography from a local artist (she had a battered Hasselblad, of course). Everyone said, "Oh, you should get a new Canon SLR, as that is the latest and greatest!"

35 years later and that old Leica is now a collector's item. Wish I hung onto it.

Sometimes having the "ultimate" whatever ends up being a disappointment.

This is a very odd forum. Most of the postings seem to be about SPENDING money, not saving it. If you really want to retire early, you either need to have a huge amount of savings, or find ways to spend less.

Since most of us don't have the former, the latter is the only option....

Just my two cents, which I want back so I can put into my savings.

 

[NW-Bound]

This is a very odd forum. Most of the postings seem to be about SPENDING money, not saving it. If you really want to retire early, you either need to have a huge amount of savings, or find ways to spend less...

No, it's not odd if you consider that perhaps 1/2 of the forum posters are already early retirees, and the rest ER wannabes. The ERs like myself have saved and scrimped through our life, and now we may want to let loose of our wallet a bit before our time runs out.

Signed someone who survives (so far) a life-threatening disease...

Sometimes having the "ultimate" whatever ends up being a disappointment...

I agree full-heartedly with this. That's why we never buy the "best" of anything. We normally buy just a-bit-above-average products, and figure that's the most cost-effective level. Well, quite often we cannot afford the best anyway, such as a 6-figure auto or HiFi loudspeakers.

 

[NW-Bound]

PS. Having been on this forum for a while, I know I am not the only one with a 7-figure investable asset (meaning not counting the homes) where that 1st digit is not a "1". I also know I am not the only one who can afford a $1600 camera, but not wanting one because we do not know what to do with it. But on the other hand, if it brings joy to someone who appreciates it, then it's different. A lot of the people here who tell someone else to spend the money are actually tightwads, hence the earlier talk about "delayed gratification" not being "denied gratification".

 

[frayne]

Well, if you have tons of money, spending is never an issue. Or is it?

Even when making the vaunted "six figure salary" much of one's income is taken up with mortgage, 401(k) savings, taxes, health insurance, auto expenses, kids college fund, etc. Most folks would be lucky to have $10,000 left over at the end of the day. $1600 for a camera represents 16% of disposable income for someone in that situation.

And the situation we are talking about is the OP's. Sure, maybe you can afford the camera, but how does that help the OP, unless you want to gift them one?

I live on a retirement island. Yea, my house is "paid for" and I have no credit card debt, either. But I would have to think long and hard about spending $1600 on a camera.

Why? Because I see my older neighbors and how that works out when they are 70 or 80 and run out of money. It ain't pretty, let me tell you.

Funny thing, when I was a kid, my Mom gave me her old German Leica camera and I took a class in B&W photography from a local artist (she had a battered Hasselblad, of course). Everyone said, "Oh, you should get a new Canon SLR, as that is the latest and greatest!"

35 years later and that old Leica is now a collector's item. Wish I hung onto it.

Sometimes having the "ultimate" whatever ends up being a disappointment.

This is a very odd forum. Most of the postings seem to be about SPENDING money, not saving it. If you really want to retire early, you either need to have a huge amount of savings, or find ways to spend less.

Since most of us don't have the former, the latter is the only option....

Just my two cents, which I want back so I can put into my savings.

Don't have tons of money and spending is something I have always watched. Yep, had the six figure salary but lived on much less and saved so I could exit the rat race a little bit earlier than many. If $1600 was 16% of my disposable income, I probably wouldn't even think about spending it on a camera. Again, my two cents, it is all about perspective and balance.

 

[Major Tom]

This is proving to be quite a spirited conversation. Like many threads, it hasn't gone in completely the direction I initially envisaged but hey - once you launch one of these things into the air, you kind of have to allow it to blow in whichever direction the wind takes it.

The main thrust of my OP was to wonder about the process by which I often end up persuading myself not to buy or do things. FIREd came closest when he said that there may be a bit of denied, as opposed to delayed, gratification going on. Some of you guys are discussing whether a $1600 camera is a prudent purchase and that's fine. In this vein, we could really be talking about the possible purchase of any consumer item, and each of us will have a different answer, ranging from, "That's far too much money to be spending on an Acme Widget", to "Buy it and enjoy it. Life is too short!"

Obviously, there is no one-size-fits-all answer, but our own personal answer will be guided by such considerations as the potential utility to the purchaser. Person A may have little interest in an Acme Widget and so even if it's purchase represents only 1% of his/her income, it will be considered an imprudent purchase. On the other hand, Person B may find this product to be of great use and the source of a lot of continued enjoyment. Even if Person B has a much lower income, and the purchase of the Widget represents a much larger proportion of their income. It may therefore be considered a prudent purchase for this person.