What’s Your Spending Threshold?
At what point do you feel mental pain as a result of a purchase (or in the case of married folk physical pain?) How much money can you blow before you feel you need permission so your other half won’t “bring the pain?” If you’re single at what dollar amount do you feel guilty for buying something?
Since my wife and I are trying to reach some specific financial goals we are kind of strict about any money that we blow. The dollar amount that would trigger my wives fury while we were trying to eliminate our personal debts (I know this may sound insanely low to many of you) was around $25. Do remember though that my wife is a saver by nature and I’m the one that liked to spend. Also remember that I’m talking about spending money that wasn’t in our spending plan – I’m not talking about things like food, gas, needed things around the house, car maintenance etc. – I’m talking about things we hadn’t planned for like a cool $52 sweatshirt, or a $175 replacement for the broken cell phone – you know that sort of stuff.
Now that our debts have been cleared (with help from some learned behaviors like this one) our spending threshold has now been adjusted accordingly. We’re now closer to the $80-$100 range for “free” spending. Now that we’ve worked so hard to always discuss and share our finances we usually talk about most things over $50 anyway (note that we talk about it…not fight about it). Hopefully one day with enough hard work and discipline when I surprise my wife with the new Cadillac she wants and the only discussion we’ll have will be where we’re taking it for dinner that night and who gets to drive – now there’s the spending threshold I’m shooting for!
Agreed upon spending limits is where a couple’s shared finances can really help a couple succeed over the long term due to the unavoidable accountability. How’s the saying go? “At some point he’ll have to come home!”
What dollar amount do you feel you should have agreement with your spouse before buying something as to avoid your home turning into a bad Jerry Springer episode? If you’re single at what dollar amount do you feel you’ve let yourself down buy spending too much?
...."so when I got home we had a talk and decided this money situation had to change. I didn’t know how I was going to change it, we were barely making enough money to cover the monthly payments so how the H-E-double-hockey-sticks was I going to fix it?"
Right now we are in the phase where anything over $25 is a discussion. A rational quickie I like to call it. We usually mention other stuff too though. He went to Lowes the other day… for pseudo-necessities… and mentioned that he spent $11.46. May sound ridiculous to some, but once the lines of communication are open that is what happens! We don’t look at it as being stifling or controlling, just overly micro-managing our spending because lets face it… had we been managing them at all we wouldn’t be where we are right?
1My wife and I each get $20 per week as our blow money. EVERYTHING else is discussed first. By talking about it first we usually realize it would be a stupid purchase anyway and 90% of the time we don’t get it. This way there are no fights because we decide first.
2I can’t wait for that Cadillac with a big ribbon on it!
3