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SMI Visitor's Blog
     Welcome to the SMI Visitor's Blog where you'll find selected excerpts from our Member's Blog, plus occasional posts created especially for our visitors. For SMI Web Members, click here to go to the SMI Member Blog. September 8, 2011$1,000 impulse buy?I recently blogged on the best spending decision we ever made. One of the key principles, if not THE key principle, is to spend with your goals in mind. The post explains why this principle is important. In fact, it's so important that I'm going to stop right now to give you a chance to read it. Go ahead, I'll wait right here... ... Back? See my point about being intentional with your spending? In the same way that you should invest with inside-out thinking, you should spend with inside-out thinking. Well, a recent spending opportunity came my way. Let me paint the picture for you:
It was a lovely Saturday afternoon and I'm at Costco with my 6-year-old doing some grocery shopping. Walk in, turn the corner past the TVs and there sits a nice, brown sectional. It's big. Seven different configurations. Child friendly micro-suede fabric. And only $999. Now it's our ideal family couch for the basement. In fact, we had talked about this very thing... a big, brown, sectional, perfect for a family night watching some Netflix with the kids. But, what we really need first is a couch for the living room. We still have a futon as the primary seating in the living room (also purchased from Costco) and it really needs the new furniture before any other area of the house. And while we could use this sectional in the living room, it's a little big for the space and not conducive for the arrangement we had in mind. By now you've figured that we did indeed buy the couch. And it currently occupies the living room and doesn't look completely terrible. The futon has been moved to the basement, which provides some much needed seating downstairs. But did we spend with our goals in mind?
So how intentional were we with our spending? Did we order the lobster? On one hand, I'd say no. Getting a couch like this was a part of our plan, it just wasn't top priority furniture-wise. It was an unbeatable value. We had the money for it. On the other hand, I'd say we botched it. The timing wasn't great. While it would have cost more to get a more comfortable one, we shouldn't let value trump comfort. And if the right living room couch does come our way, we may not yet have the funds to buy it because we sunk them on this couch. So I guess the question becomes, does a good spending decision have to meet ALL your goals. I'd say no, a good one does not. But good is the enemy of best and for that reason, I'd say it wasn't the best decision we could have made. But maybe you see it differently? What would you have done?
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Posted by Matthew at 11:39 AM
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It sounds like you made the decision right there on the spot to purchase the couch. A better approach would have been to take a few days to evaluate the couch compared to your needs and even to have shopped for other options for comparison purposes. You may have come back to it as the best deal at this time but would have done so knowing that you had fully evaluated it and compared to other options.
You're wrong and you're right. What I didn't mention in the post (for clarity purposes) is that we originally saw the couch on a Saturday. When we went back to look at it, they were all gone. Then a few days later, some more had arrived. So we did have time to think on it.
But you're right, we didn't compare other potential basement couches. We thought this was the perfect couch for the basement and then shuffled our priorities to get this good deal, which on one hand is surprising for me because I'm a researcher... who was battling my value-buy sensibilities.
Fair point.
I would have put the sectional in the basement, which was your original intention and left the futon in the living room until the right sofa for the living room came around.I am not really an impulse shopper, but I have learned that if it's something you really like AND NEED, go ahead and get it because if you don't you'll regret it. You would have gone back looking for it and it would have been gone. I'm also an all or nothing type of person also. I would rather leave my living room completely empty until I found what I wanted instead of buying something just because it was a good deal. So you have to be honest with yourself, was it what you really wanted or did you just buy it because it was cheap?
The wife wouldn't go for it, because that would have had two futons in the living room and a new couch in a basement that was having work done on it (getting a leak fixed, drywall replaced, and painted). I floated it by her though, so I know where you're coming from.
As for honesty, we did really want it, it was cheap, but we weren't in the market for it at the time and perhaps would have been better served waiting. Time will tell.
I understand about leaving a room empty instead of piece-mealing it together.
I would have spent a few weeks doing some research and tried out a few different couches first before the purchase.
You say you had a futon already, would a few more weeks with it matter?
Our thoughts were that in a few weeks, Costco may not have it. And I think that's where the feeling that is may have been an impulse by came in... we did it under a timetable, so it felt a little rushed, and therefore, wrong. Makes sense what you're saying.
I do not consider your decision an impulse buy. The sectional had been on your "list." The opportunity came available. Your family knew what they wanted. You family passed by it the first time and then when you went back to check they were all sold out. The third visit they restocked.
Setting goals and priorities are all about planning it out and then looking for opportunities to complete the plan. Flexibility has to be part of the equation or everyone will be very unhappy.
I love your statement, "Setting goals and priorities are all about planning it out and then looking for opportunities to complete the plan. Flexibility has to be part of the equation or everyone will be very unhappy." I'd like to think that's what we were doing, setting goals and being flexible.
I agree with C Johnson...and I love that statement also. One of our financial goals should be that we can be in a position financially where we can respond to a good opportunity when we see it. Doesn't mean we have to respond to the opportunity, but just that we at least have the option. It sounds like that's what you did. The only slight diversion in following your plan seems to be that you put the couch in the living room rather than the basement. But eventually, you'll find the perfect sofa for the living room, and hopefully you'll be in a position to capture that opportunity also. And then you can move this couch into the basement, and finally fulfill your seating plan.
That's a good way to put it Chris... "One of our financial goals should be that we can be in a position financially where we can respond to a good opportunity when we see it. Doesn't mean we have to respond to the opportunity, but just that we at least have the option."
intresting, have a great day!