Summary

The article discusses a strategic approach to spending money wisely by investing in quality items that offer long-term value, using the phrase "A rich man buys it once, a poor man buys it twice" as a guiding principle.

Abstract

The author reflects on their experience with frugality and emphasizes the importance of not letting the pursuit of savings diminish one's quality of life. The key takeaway is to invest in high-quality items that have a longer lifespan, thereby avoiding the need to replace them frequently. This approach is encapsulated in the phrase, "A rich man buys it once, a poor man buys it twice," which serves as a reminder to consider the long-term value of purchases. The article advises readers to take time to evaluate the necessity and value of a potential purchase, to research alternatives for a better cost-benefit balance, and to calculate the cost per use to determine if the investment is justified. By adopting these strategies, one can strike a balance between frugality and enjoyment, becoming what the author refers to as the "comfortable man."

Opinions

The author identifies as a "Fussy Frugal Queen" and acknowledges that excessive frugality can lead to buying lower quality items that need frequent replacement.
Quality and longevity should be considered when making purchases, as investing in better products can be more economical in the long run.
It is important to differentiate between what is worth splurging on and what is not, to become the "comfortable man" who makes informed purchasing decisions.
Taking time to think over a purchase can help distinguish between wants and needs, allowing the subconscious to process the decision.
Researching competitors and understanding trade-offs is crucial when looking for more affordable alternatives to a desired product.
Calculating the cost per use of a product can provide insight into its true value and help determine if the purchase is financially justifiable.
The author believes there is no strict rule for what constitutes a good cost per use; it is subjective and depends on the individual's comfort level with the expense.

The Phrase That Changed How I Spend Money

It’s easy to get so caught up in the thrill of frugality that your lease on life seems to shorten. Being frugal shouldn’t come at the expense of your enjoyment of life, but far too often, it’s hard to keep from slapping your own wrist when you see something you just want, for no other reason than wanting it.

But through all of my experience as a FFQ (fussy frugal queen), I have seen time and time again how this frugal affliction of mine has come to stab me in the back.

So I’ve come to take this phrase into account:

“A rich man buys it once, a poor man buys it twice.”

Let that just sink in for a minute.

A rich man, deciding to spend more of his money on a quality item, buys something that lasts. He invests in the product, and in turn, he invests in its longevity.

A poor man skirts around the price tag and buys lower quality items with a shorter lifespan, thus forcing him to repurchase items when they inevitably fail him.

The challenge is to decide what’s worth the splurge. Only then can you become the happy medium — the “comfortable man”? To do that, you have to decide for yourself what is worth your money.

Sleep on it

If you aren’t sure if that item is truly splurge-worthy or simply an infatuation, try taking some time to think it over. You don’t even need to think about it consciously while you do this, in fact, it might be better if you don’t. The goal is to create space between your “I want this” brain and your “I need this” brain.

Give yourself a few days at least to let your subconscious mull it over. If you’re still thinking about the product after a few days have passed, there’s a fair chance it could improve your quality of life in some way.

Consider your alternatives

Do some research into the product’s competitors. Are there comparable options available?

You have to decide what you’re willing to trade-in for a cheaper price. Say you’re looking for a lawnmower and the one you want is a perfect size, good on gas, but it’s a bit out of your budget. Perhaps there are similar lawn mowers on the market that are cheaper, but you have to sacrifice the fuel efficiency or compact size of the more expensive machine. Prioritize the features you need and sacrifice the bits you can live without.

Cost per use

If you’ve gotten this far and still think you want the item, here’s one last question to consider before clicking “order now”. How often will you really use it? More specifically, what will your cost per use be?

Take the lawnmower example again; you decide you’re not willing to compromise for a cheaper price, but you’re still a bit weary of the overall cost. Let’s pretend the lawnmower costs $500, tax in.

Now, calculate how often you’re likely to use it.

Maybe you live in a colder climate and as such, it’ll only be in use for four months of the year. Of those four months, you plan to mow your lawn once per week. That makes 16 lawn mowing sessions each year. And let’s say you imagine the lawnmower will last you 10 years, thus equaling 160 uses total.

If you then divide the overall cost of the item ($500) by the number of uses it will get over its lifetime (160), you will get its cost-per-use. In this case, it will cost you $3.13 every time you use your lawnmower — whether you’re comfortable with that number of not is up to you.

This is a great mental trick to use when you’re considering a splurge purchase because it works well for just about every item. I find this trick especially helpful when I’m looking to splurge on clothing. If I find a top that I love and costs $50, but I’m only likely to wear it once or twice, I don’t buy it. Why? Because my cost per use would be $25, and that’s pretty steep. Ultimately, there’s no hard and fast rule about what is a “good” cost per use, it all comes down to what you’re comfortable with.

Happy hunting, everyone!

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.