What’s Your Number?
April 4, 2011 18 Comments
I mentioned in my post about Financial Peace University: Week 6 that Dave was talking about what a “significant purchase” is – and said that for the “average” person the cost for a significant purchase is $300.
This obviously varies depending on what your income level is and what your debt load is. A $300 purchase is more significant when you’re only making $20,000/yr vs $80,000/yr. Also, $300 is more significant if you are making $40,000/yr with $10,000 worth of debt vs NO debt on that salary.
You can tell a significant purpose because you actually get a physiological response from buying it. There is a euphoric high associated with it. Also, there is a strong potential for “morning after” regret. There is a heart pounding response at the cash register of buying something SIGNIFICANT.
So I’m curious for personal finance bloggers – what is your number? At what point do you think a purchase is significant?
For me it is MUCH under $300, I’d say that any one item above $50 is significant for me. I didn’t buy a DVD player for the LONGEST time because I wanted one that was less than $50 so I wouldn’t feel guilty about getting one. I honestly have a hard time placing my finger on a purchase I’ve made over $50 that wasn’t rent, car repairs, or health care.
What is your number?