{budget}fab*

rich is relative

Posted on 18. Feb, 2009 by budgetfab in penny pinchin'

Every person has their own personal hierarchy, a ranking system that they use to determine what’s most important to them. Being rich may not necessarily be having a lot of money in the bank, for some it could be driving a Mercedes, or having a closet full of Jimmy Choos. Rich is totally relative.You could go through life trying desperately to eliminate debt (and by all means you should) but in the meantime, stop and smell the roses. Take time to enjoy these moments because no amount of money can buy them back. They’re priceless.

I took some time and thought about what my personal hierarchy entails…and I encourage you to do the same thing. To me…I am rich right now. I buy the clothes that I want and I pay somewhat good money for them, not always, but often. I drive a car that’s nice & reliable. My apartment makes me feel safe and it has a garage. I put 10% of my salary into my retirement, I belong to an investment group, and I save on a regular basis. And most importantly, I have great friends and a wonderful family. So in my eyes, I am rich. I have what I want out of life at this very moment in time. My hierarchy will of course change as the years come & go, but for now…I’m okay with where I am, and I’m also very proud.

I encourage you to decide what things are most important to you in life and strive to accomplish those things, whatever they may be realizing that at times these goals may shift & change.

A note before I end this thing…often friends give me a hard time about spending money on clothing. Keep in mind, that according to my personal hierarchy, that’s something that’s important to me, for which I’m willing to sacrifice. With that said, I nicely pointed out that I don’t go out to the club every weekend, tailgate throughout football season, go to a fast food spot everyday for lunch, or to Pennsylvania to go snowboarding every weekend. Those are all things that may be in someone else’s hierarchy, but they’re not in mine. So with that said, there really is no difference between myself and anyone else. I buy what I like…if I see something that I want and it’s unreasonably priced, I’ll wait until I have a coupon or it’s on sale. But I’m gonna get it! I also tend to wear most of my clothes to work as well as out on the weekends. They double, so that means I get more wear out of them. I don’t buy a bunch of jeans (which I can’t wear to work, not even on Fridays), I buy shoes and shirts and skirts that can be worn to work, church or play. (Note: I do not shop aimlessly and irresponsibly, see paragraph 3 for what I do before I play.)

One more thought…for those of us that have personal appearance matters somewhere in our personal hierarchies. When I pay more for something, I treat it better. I’m not endorsing or suggesting that we all go expensive possession crazy but I am saying that it’s okay to buy nice things for yourself, especially if you’re going to use them often. Sometimes expensive purchases can be justified on a cost per use basis. Here’s an example that I borrowed from You’re So Money but can also see illustrated in my personal experience. Boyfriend has about 5-6 pairs of sunglasses, all of which he paid no more than $20 for…I have one pair of designer shades (and I’m not buying anymore). However, when he breaks a pair or loses a pair, he’s like no biggie…they were only $15, but then he goes out and buys another pair for $15. And this happens over & over. Now, let’s examine my side…I’ve had my one pair of Diors for 3 years now, and they still look brand new. Plus I KNOW they have true UV protection. Therefore, I don’t feel bad about wearing them while he’s piddling away between $10-20 on random shades, my pair is still kicking and fabulously fly I might add. You only have one set of eyes and it’s important to truly protect them (who wants crow’s feet around their eyes?!). Lots of people have said that they’d break their sunglasses and this is most likely true for some of us. It all depends on your hierarchy. But this example can be applied to whatever it is, that IS important to you.

So…
Be rich
Be fabulous
Be young

After all…it’s relative, right?

Tags: being young and saving money, how to be rich, money, rich, saving smart