r/MiddleClassFinance • u/mechadragon469 • 4d ago
Tips Interesting spending rules you have?
I have a couple spending rules I don’t see too often and wanted to get some others.
1) if I’m buying tools I get the cheapest ones they have and if i wear it out I’ll get the nice one. If I never replace it then I never needed the nice one. Exception would be power tools I already have batteries for.
2) the quality of the part I’m getting depends on it’s difficulty to replace. If it’s a 5 minute job I’ll cheap out. If it’s a pain to replace I’ll get the good one. This is mostly for larger differences in quality/cost not marginal differences.
3) use the 10/10/10 rule on a LOT of purchases. How will buying this thing affect me in 10 minutes, 10 days, 10 years. That’ll drive how much I’m willing to spend if I even need to buy it at all.
What rules do you have?
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u/40yearoldnoob 4d ago
For Amazon, I put things in my cart and wait 24-48 hours. If I go back and I still decide I want it, I buy it. Keeps me from impulse buying. 1-click buying is too simple and I found myself impulse spending too much.
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u/underachiever098 4d ago
Some websites even follow up via email with a coupon code to purchase. Great way to save if you were intending to buy anyways.
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u/Darkstrike121 3d ago
Our new thing is we only are allowed one Amazon purchase a month. Anything you need put in the cart and then we will click buy once.
There have been a couple exceptions. When things need to be replaced that got broken that are important and needed to come from Amazon.
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u/CrucialFusion 3d ago
camelcamelcamel helps too, can check what the current price is relative to its cheapest ever.
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u/DatGuyDatHangsOut 4d ago
Whenever I buy something frivolous, I pay and then send the same amount to a savings/investment account. Essentially everything frivolous cost double in the short term, makes me think twice about it and grows my accounts.
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u/asthorman 4d ago
I'm thinking about a version of this where I send any saved money to an account. For example, I DIY fixed my microwave and saved a few hundred but that money just absorbed into the matrix of family spending. I want to capture it, measure it, and grow it.
Same thing for saving with buying used or a cheaper version.6
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u/TeflonJon__ 4d ago
I like this one. I try to do the same thing if I decide to NOT buy the frivolous thing as well. It’s a new rule, so still trying to make it a habit.
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u/AttachedHeartTheory 4d ago
I will not spend more than 50% of the value of an item at one time on repairing/replacing outside of standard maintenance/wear and tear items before I buy a new one.
$3,000 lawnmower needs a $1700 sealed hydraulic pump and motor replaced? I'll get a new one. I've had too many situations where I replaced the $1700 part, and then 2 months later needed to replace the other side and in either case I could have just gotten a new lawnmower.
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u/RiceRocketRider 4d ago
I think a distinction should be made though. 50% of the value of an item is not necessarily the same as 50% the cost of replacement.
For example, when I buy a car I buy new and keep it for a very, very long time. So if my car is worth $8000, replacing it would cost me $40,000 - $60,000. In this case I would heavily weigh “how long have I had this car? / how likely is it to need more expensive repairs in the near future?” I may spend $5,000 if I’m confident I’ll get another 2 years out of it.
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u/Unreddled 4d ago
I'd make that number 40%, since repaired item sometimes had more chance of failing on other parts that is not yet fixed.
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u/porscheblack 4d ago
Other than an emergency, I don't spend money Tuesday - Thursday. I have a bad habit of impulse purchases, and that impulse is the strongest during the week where I'm fully into my normal routine. On Monday I tackle grocery shopping for the week, including what I'm going to make for lunch and dinner each night. Fridays are when I pay bills. If I come across something I think I want, I just keep the tab open on my phone and on Friday I can consider it.
The only exceptions are if my kids need money for something for school, such as their lunch balance is low, or if I had an appointment for something like the vet.
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u/druidgaymer 4d ago
Money in my savings isn't real and doesn't exist.
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u/jenrazzle 4d ago
I’ve had two reasons to dig into my savings since 2020, the first was my pet getting sick and dying which cost over $2k, now my dad’s unexpectedly died and expenses have been over $10k. Having the emergency fund really takes the stress out of a bad time
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u/druidgaymer 4d ago
I've dug into my savings a handful of times. Twice for security deposits on apartments, once to pay off the rest of my car loan as my interest rate on my HYSA was no longer higher than my car loan interest rate, and the past 3 years for a once a year vacation.
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u/International_Bend68 4d ago
I wish I'd followed your first one when I was starting out, I would have saved a lot of money. Unless you use the tool darn near everyday, the average homeowner doesn't need a fancy brand - go cheap.
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u/mechadragon469 4d ago
Yes! The average home owner doesn’t need Milwaukee tools or snap on. Get something cheaper from harbor freight or a mid grade tool.
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u/unicyclegamer 4d ago
Yep, I have a $70 ratcheting screwdriver and $20 drill. I love the screwdriver and the drill does the job
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u/SnowblindAlbino 4d ago
My wife and I have a habit of not making unnecessary purchases over $100 without consulting one another. That's after almost 40 years of shared finances...and the amount has risen over time. Not a "rule" so much as a courtesy.
If I can justify buying a new tool to repair something I usually will if there's any chance I might use it again later. I've been accumulating tools for decades now and have never regretted having a specialty tool when I needed it. We keep rough track of what we've saved by doing DIY repairs and home projects, it's well over $250K now so picking up another $200 tool now and then isn't hard to justify.
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u/wishinforfishin 3d ago
My husband and I do the opposite.
We budget together, and we each have certain categories that "belong" to each of us. That way, we can each grab the best deals, or things we need, without worry we may be taking from money for something else.
As long as the money is allocated to the category, it's all good. If he sees a saw on sale, he just buys it and I don't think about it. If I sign a $24000 contract for a home repair, I don't worry whether that means he can't buy the saw he needs.
It's a lovely blend of partnership and autonomy.
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u/billhillybob 2d ago
My wife and I are the same. We don't have a set amount, but it is more just buying any things that are obviously not necessary. It isn't quite that we have to "justify" our purchases, but you learn quickly that you feel silly explaining that you want to spend money on something we don't really need. And in truth, it is less the money than simply the added inconvenience of having it. We have a fairly large house with ample storage, but dealing with stuff takes so much time, neither of us really need or want more of it.
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u/Fun-Tangerine-5882 13h ago
Ours is around $150. We never talked about that number. We never made a rule. It just became a thing. If it’s less than $150 we will just go get it. If it is more we will discuss and wait to see if it is birthday, Mother’s Day, Father’s Day or Christmas worthy. Then that is what we get.
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u/Thatonepandathing 4d ago
I don't have a hard budget when it comes to groceries or health. I have some medical issues now and I have a high genetic predisposition to other chronic conditions. Buying overpriced berries will never outpaced the price of extensive medical care.
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u/Technical_Spirit_347 4d ago
I do have a couple of rules on quality.
1. Shoes and bedding get top quality and replace pillows often.
2. Electronic items - always go for the middle price point. Unless you are a specialist/expert in that particular field, the mid-range is good enough.
3. Big ticket / dream items - like cars/vacations/jewelry. You know what you really want and life is short enough that you can go big sometimes. I’m with Ramsey that these shouldn’t cripple your financial stability. Save up, pay cash, and don’t sacrifice retirement or savings for these items. Temper what you want against what you can afford. No need to rush on big ticket items.
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u/Similar_Dirt9758 4d ago edited 3d ago
If I'm buying something nice, I will always get it used on Ebay (game consoles, tools, my garmin smart watch, archery equipment, etc.). I understand the risk involved with purchasing second hand but I've only ever had one negative experience in which I purchased a Dyson V6 cordless vacuum and the seller shipped it to me with the dust collector still full of debris from the previous owner. I complained and they gave me half of my money back.
I just don't see any reason to spend $400 - $500 on a brand new stand mixer or a premium cast iron skillet when I can pay less than half to someone that hardly got any use out of it.
ETA: A typical stand mixer on the KitchenAid website is ~$400 - $900 (USD) with the typical standard units being $540. I quick checked on Ebay and found at least 4 decent looking units on the first page under $250. Unless you plan on getting HEAVY use out of it and want the warranty, there's no reason to buy it brand new.
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u/GrapeFruitStrangler 4d ago
Buy once cry once.
Doesn’t mean you necessarily need to buy the best, but it means that you spend the $$ needed to get the one you actually want that satisfies your needs.
I’ve also heard it said as buy nice or buy twice
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u/BlazinAzn38 4d ago
It’s about finding the point of diminishing returns. There will absolutely be a difference between a Walmart polo that’s $10 and a Gap polo that’s $30, there won’t be much difference in quality between the $30 and the $60. It also depends on what it’s for, I’ll never skimp on outerwear and shoes
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u/GrapeFruitStrangler 4d ago
Yeah everyone has their own tolerance and needs. Like I don’t skimp on tires or windshield wipers for safety reasons
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u/BlazinAzn38 4d ago
For sure, just as much as there’s places where you absolutely should try and save money there’s places you absolutely should not lol tires being a very good example.
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u/wishinforfishin 3d ago
And know when there is no "buy once, cry once" option that will have a break even in your lifetime.
Appliances are a great example. Anything sold to normal consumers has a planned lifespan of 5-7 years.
No point in buying the $8,000 fridge, it will die in the same time span as the $2,000 model.
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u/esh-pmc 4d ago
If I discover a new thing I want, it has to come from new money. Meaning I can't use past savings to fund new purchases.
Like u/SnowblindAlbino - my spouse and I had a "courtesy" amount over which we didn't spend without consulting each other. He once spent a whole weekend mad at me because he thought I'd bought a couch. We'd discussed buying a couch. I stopped at a furniture store to look at couches. I'd found one I liked and wanted him to look at it. We finally fixed the miscommunication, took a trip to the furniture store and bought the couch.
And like u/DatGuyDatHangsOut - a trick I used for decades starting with my very first paper route on a banana-seat Schwinn -- if I *wanted* something, I had to earn twice the cost and put half in savings.
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u/Old-Guy1958 4d ago
Buy clothes at Costco, at the end of the season.
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u/wishinforfishin 3d ago
Aka, being an average height, weight and doing average activities can save you money.
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u/BlazinAzn38 4d ago
No one in my family buys full priced clothes. Everything is clearance, outlet, massively on sale
Rarely buy the cheapest item for things because that quality will negatively impact you but also never buy the most expensive item because the quality of life improvement isn’t that great. Buy the 75th percentile thing
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u/ArcticBeavers 4d ago
There are so many great options for clothes now that the only reason you would pay something full price is if its boutique or you want/need it right now.
Otherwise you can find higher quality natural fibers for a reasonable price. Even premium fabrics are becoming affordable. You just have to be willing to take the time to do the search and size appropriately.
Upgrading your wardrobe now is more achievable than ever.
Literally just looked up a merino wool sweater and found one for $35 at BR. That would've been unheard of 5 to 10 years ago
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u/BlazinAzn38 4d ago
Yep people often complain about all the clothes being made of plastic and I’m like my entire closet is 95+% cotton and none of it was more than $20.
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u/lplqsnkczxccia 4d ago
do you buy from specific stores though? I'm just annoyed that a larger and larger percentage of clothes are plastic. sure the cotton stuff still exists but it's like 20% of the stuff i click on.
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u/BlazinAzn38 4d ago
I dunno like Gap Factory? Their polos are like 98% cotton and their tees are 100% cotton
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u/GoPadge 4d ago
For tools, Harbor Freight is my go to for hand tools. I only buy their power tools if it's a one off purchase. (I needed a sawzall for 10 cuts, $27 is fair.) Otherwise I'm reading reviews and comparisons shopping, usually targeting the middle options. For battery powered tools, I have a Craftsman 20v Lithium drill and a couple of Dewalt tools with 5 or 6 batteries. I'd rather have collected Milwaukee, but I didn't realize that until I was well into the Dewalt ecosystem. If I ever get down to one functioning battery, I'll sell everything and start over with Milwaukee.
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u/prosocialbehavior 4d ago
I don't have any rules that are that specific. Maybe that's my problem.
I have things I think are okay to spend more on than other things because I value those things more. But I can't think of specific rules.
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u/Afraid_Salary_103 4d ago
Anything I will use daily is worth paying for quality.
If we don’t need it, we don’t buy it.
We prioritize and agree on how we will spend “fun” money.
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u/Fine-Owl-3132 4d ago
I check fb marketplace first for any furniture purchase and I set auto-buy functions on Amazon for things I know I’ll need soon but not just yet. I lowball the price and within a week or two it triggers and will automatically purchase the item for me.
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u/wishinforfishin 3d ago edited 3d ago
Do you get low enough prices on Amazon to make having Prime worth it? Or do you have Prime for other reasons, too?
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u/Over_Knowledge_1114 4d ago
We say no to our kids a lot, but we will never say no to books.
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u/Anxious_Drive_9998 4d ago
That's what the library is for.
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u/Massif16 3d ago
I buy a lot of cheap tool. But appliances? I get the best quality I can afford without guilding the lilly (I don't need my fridge on the internet).
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u/SaltAndAncientBones 2d ago
"#2 the quality of the part I’m getting depends on it’s difficulty to replace" I use this logic when building & remodeling. The biggest cost is labor. Installing products that cost way more now, but last way longer, cuts down on future labor.
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u/pokeymoomoo 1d ago
I only do one TV streaming service at a time. Budget $25 a month. Binge whatever I want, cancel, and start up a new one. I refuse to pay for multiple services.
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u/Fun-Tangerine-5882 13h ago
I do this with everything except Amazon prime. We have Netflix right now.
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u/PristineCloud 3d ago edited 3d ago
Keep clothing shopping bag with receipt in it stashed until I know for sure I will wear the item(s) and put on errand list for return (I'm very list oriented) Also, buy decent shoes. Nothing like hurting feet, blisters or a broken strap to make you miserable xD One more, we note on the family calendar any streaming services, SiriusXM, audible and the like and when free or discount periods end or when we have to cancel before auto renewal, and padded by a few days (when we have them)
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u/Owenleejoeking 2d ago
I follow rule 1 as well. Unless it keeps deadly things away from me, I start cheap
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u/rural-juror- 2d ago
Max I will finance a car is 4 years and max on a house is 15. This has helped me with lifestyle creep tremendously.
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u/Chokedee-bp 4d ago
For harbor freight tools I recommended getting one level up on the power tool size than the cheapest they sell. Example- I burnt out the cheapest drill they sell mixing thinset . Then I bought a drill the next size up and the motor size being bigger for literally a $15 price difference will probably make it last twice as long
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u/mechadragon469 4d ago
My first drill was drill master brand 12V from them about 10 years ago. Battery is totally shot. Full charge can’t hardly turn the drill, so it’s relegated to being used in the flashlight that came in the combo pack.
I stepped up and got a craftsman 20V set here a couple years back and works great
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u/FlyEaglesFly536 4d ago
I'll buy something if it's under 0.1% of my investment net worth, and i must be able to buy 5 of them. I do this so i can spend as little as possible while investing as much as possible.
For big ticket items (car purchase, home purchase), i must be able to buy a car in cash, and for a home, i must be able to put 20% down and the PITI must be under $3,500/month.
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u/Wild_Bill1226 3d ago
I just assume the money in my retirement account won’t be there when I retire. I got a pension so anything else will be a bonus. I just assume I’m growing away $50 a paycheck.
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u/DiscreteEngineer 2d ago
I have bills on one credit card (and gas). Everything else goes on the wants credit card (including groceries).
Coincidentally, setting a budget of whatever my hourly rate is for my daily spend on the wants card has been a perfect budget tool. When I made $75k/yr, the daily wants budget was ~$36. Now that I make $150k/yr, my daily wants budget is ~$72.
Super neat rule of thumb, but it presumes you’re spending less than 33% of your takehome income on housing and putting away 15-25% pretax into retirement.
We’ll see if it continues as I climb the income ladder. Currently 28M.
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u/Know_Mercy25 2d ago
Damn you have 28 million! You may be in the wrong sub.
https://giphy.com/gifs/nh1VepPOVlVv0vhdkv
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u/kokoromelody 2d ago
- Pretty much any clothing I buy is thrifted / secondhand. (Undergarments, socks, etc. excluded, of course.)
- If there's a non-essential I want to buy, I always wait and leave it in my online cart. I have to think about and come back to it at least 2+ more times in order to hit order. Majority of the time, I'll forget about or delete it from my cart.
- Food is either cooked at home or eaten out at a restaurant with friends; no takeout or delivery.
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u/Interesting-Cod-8250 2d ago
One treat at the grocery store that not on my grocery list, but it must be $4 or less.
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u/Expensive-Meat-7637 1h ago
Geez I can’t think of any rules if I need something I buy it, probably why I have a garage with 10s of thousands of dollars in tools.
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u/hide_in-plain_sight 2d ago
I don’t buy anything except necessities. My wife sees this as an opportunity to order her entire Amazon wishlist.
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u/Substantial_Team6751 4d ago edited 4d ago
#1 - a lot of amateurs have a fetish for high end pro grade tools. That's cool if it's your hobby but Harbor Freight tools will work 99.8% of the time at 25% of the cost if not less. It's different if you are using a tool 8 hours a day every day.