PSA If you have to ask if something is “worth it”, you can’t afford it

[Anonymous]

I’m thinking of all those stupid foods like $1,000 pizza with caviar and gold leaf or the mediocre steaks in Vegas that are $50 for the steak and $350 for the look at me presentation. If you’re not asking the “is this worth it” question you’re a fool.

[Anonymous]

I think if you're honest with yourself, then you can determine if you can afford something before considering the purchase.

But whether something is worth its cost is another calculation that comes after deciding your budget. For example, when choosing seats to a Broadway show, I generally buy the best seats I can find in the second or third most expensive tier. I just can't bring myself to pay so much more for the best seats, knowing that I could see two shows in the cheaper seats for the price of one in the front row. While I could afford the more expensive seats, it's money that I would be spending unnecessarily. I don't feel the value is there for the price.

Same thing with luggage. I've been replacing some old suitcases, and I'm determined only to buy things with good warranties. I bought a couple of Briggs and Riley pieces, and they're awesome, but then I realized that Travelpro is almost as good quality, and has a really good warranty as well (though not a lifetime warranty like B&R). I can get a Travelpro suitcase for about 30% the cost of a B&R. The B&R wouldn't make me twice as happy, so therefore it's not "worth it."

This is something you can teach your kids by putting them in charge of their own debit card. They'll ask for something, you'll check how much money they have, and they'll just sort of instinctively know if it's worth using up that much of their finite spending money on it.

So all this is to say that I don't really agree with your thesis. You should always determine if you can afford something first. But after that, you can still make value for money determinations. Even if you can afford first class or the front row or the luxury brand, there's an opportunity cost to that purchase . . . the money could have been put in savings or spent on a different bucket. So you should still determine whether it's worth it to you.

[Anonymous]

Anonymous wrote:Completely disagree. Some of us are just thrifty, despite being financially sound. And sometimes we just want the reassurance to splurge, because we're used to saving and saving and saving.

This. For one of the examples above, almost everything I choose to buy is something that would make me happier or more comfortable in the future. I’m not buying anything that’s frivolous, so everything is “worth it”.

[Anonymous]

Anonymous wrote:You figured something out about yourself and think it applies to all of humanity. Fascinating.

+1, plus OP believes this "insight" is worth sharing with the world

[Anonymous]

Anonymous wrote:I think if you're honest with yourself, then you can determine if you can afford something before considering the purchase.

But whether something is worth its cost is another calculation that comes after deciding your budget. For example, when choosing seats to a Broadway show, I generally buy the best seats I can find in the second or third most expensive tier. I just can't bring myself to pay so much more for the best seats, knowing that I could see two shows in the cheaper seats for the price of one in the front row. While I could afford the more expensive seats, it's money that I would be spending unnecessarily. I don't feel the value is there for the price.

Same thing with luggage. I've been replacing some old suitcases, and I'm determined only to buy things with good warranties. I bought a couple of Briggs and Riley pieces, and they're awesome, but then I realized that Travelpro is almost as good quality, and has a really good warranty as well (though not a lifetime warranty like B&R). I can get a Travelpro suitcase for about 30% the cost of a B&R. The B&R wouldn't make me twice as happy, so therefore it's not "worth it."

This is something you can teach your kids by putting them in charge of their own debit card. They'll ask for something, you'll check how much money they have, and they'll just sort of instinctively know if it's worth using up that much of their finite spending money on it.

So all this is to say that I don't really agree with your thesis. You should always determine if you can afford something first. But after that, you can still make value for money determinations. Even if you can afford first class or the front row or the luxury brand, there's an opportunity cost to that purchase . . . the money could have been put in savings or spent on a different bucket. So you should still determine whether it's worth it to you.

This.

“Can I afford it?” comes first. Then “Is it worth it?”

[Anonymous]

Even the ultra rich should consider if something is "worth it" because the considerations can be about more than money, such as use of limited natural resources or other environmental impact. Also, there's no need to be wasteful even if you can financially afford something. So in the OP's example maybe the $200 gym provides something they can't get elsewhere but maybe they can get the same exact thing for $100.

[Anonymous]

Anonymous wrote:That's silly. I can easily afford to give a favorite (pricey) snack to the kids who come to my house, but they inevitably leave them half finished so it's not "worth it" and I dont. Under your theory I shouldn't buy those snacks, or perhaps shouldn't host.

I can afford to travel, but some trips are "worth it" to me and some are not. Under your theory I should not travel at all. Silly.

This.

Also, when I shop for clothes and I look at some pricey options but see the quality doesn't match the proce tag - it goes right back on the rack. If I'm going to spend hundreds on an article of clothing, it better have top quality too.

[Anonymous]

Anonymous wrote:Completely disagree. Some of us are just thrifty, despite being financially sound. And sometimes we just want the reassurance to splurge, because we're used to saving and saving and saving.

This is us as we are, I guess, ultra high net worth. High end travel is worth it to us, but a high end car isn’t. I’m always asking myself is it worth it.

[Anonymous]

Anonymous wrote:Speaking from personal experience. I used to post about whether a $200/month gym was “worth it” 5 years ago. Now I realize I just couldn’t comfortably afford it then and needed to justify the expenditure in my mind with some tangible or intangible return. If you can easily afford something, you don’t have to ask if it’s worth it, you won’t even consider the cheaper options.

This is also how I know I still can’t afford a summer house or night nurse.. I have to wonder if using it 4 months a year / the extra 8 hours of uninterrupted sleep will be “worth it”.

Not necessarily. We have $10+mil net worth and still own a 20+ yo minivan that's worth maybe $500. It's used once in a while to haul older parents around or long distance trips. I can afford to buy two of every 3-row SUV/minivans out there but it's not 'worth it' for us. Sometimes it's not just about the money.

[Anonymous]

Does not make sense to me. I could afford to spend a lot without it affecting anything, but I still will ask myself if a $10 item is worth it. I don't like to spend without a good reason, and I want my purchase, whatever it is, to be a good use of money.

[Anonymous]

Really? Worth it has a time factor for me that if anything is more important than money. I don’t waste my time.

[Anonymous]

A lot of generalizing and projection there lol

[Anonymous]

Anonymous wrote:

Anonymous wrote:That's silly. I can easily afford to give a favorite (pricey) snack to the kids who come to my house, but they inevitably leave them half finished so it's not "worth it" and I dont. Under your theory I shouldn't buy those snacks, or perhaps shouldn't host.

I can afford to travel, but some trips are "worth it" to me and some are not. Under your theory I should not travel at all. Silly.

Travel doesn't just cost money; it also costs time. That's not an apples to apples comparison.

The example in the OP was a beach house, aka travel. And a night nurse, aka time to rest.

[Anonymous]

Anonymous wrote:Speaking from personal experience. I used to post about whether a $200/month gym was “worth it” 5 years ago. Now I realize I just couldn’t comfortably afford it then and needed to justify the expenditure in my mind with some tangible or intangible return. If you can easily afford something, you don’t have to ask if it’s worth it, you won’t even consider the cheaper options.

This is also how I know I still can’t afford a summer house or night nurse.. I have to wonder if using it 4 months a year / the extra 8 hours of uninterrupted sleep will be “worth it”.

I disagree. Could have purchased car I could have paid for with cash with plenty of $ remaining and considered whether it was worth it to me.

[Anonymous]

No. I am forever frugal and conservative and splurge on simple pleasures.

So I’ll drive my used Subaru into the ground but am treating myself to luxury linens and weekly manicures and massages.