This week’s Friday Financial Foul Up will feature a submission by Craig from Budget Pulse. BudgetPulse is a free online personal budgeting tool that offers the perfect combination of simplicity and functionality. It was designed so that anyone can quickly and easily take control of their personal finances. Craig can be seen all over twitter on both of his accounts (@budgetpulse & @craigkessler). He also hosts a weekly twitter chat about a specific personal finance topic on Wednesday’s at 7pm. Enjoy Craig’s foul up of making a purchase at a big discount, only to never use it.
If you would like to add your own financial foul up to this series, please contact me here.
The holiday times are a great way to come together with friends and family. More importantly, for the consumers of the world it is a great time to find super savings on items we want. Some deals can be over 50% off of the original price and this is for quality items and brand names. Especially with the recession, it’s a good time to take advantage if you need something. Well my problem is that I took advantage of the sale even though I had no need for the item I bought.
Two years ago I went to Best buy on Black Friday at 7am with the morning rush to get a Harman Kardon video receiver. It was on sale for $200, normally costing $300+ and since it was such a great deal, I though I needed it. My logic was that if I had the receiver, I then could save up for the top of the line speakers to pair it with, and as well save up for a big screen TV, creating my ultimate dream home entertainment center. Well what sounded good in theory, didn’t work so well in reality. I was living at home at the time and commuting to work which helped me save a ton of money. Eventually I was let go, and then took a job in a new city, and needed to move out on my own.
Where I Fouled Up:
Even thought I still managed to save for my big screen TV which took about 8 months, I could never save for the speakers I wanted. I actually had saved up the money, just my priorities switched for me. Between rent, bills, a possible vacation, my newly started Roth IRA and general investing funds, and personal expenses, I could not manage to pay for my top of the line speakers to go with my expensive video receiver.
What I Learned:
For now my video receiver sits in my apartment, collecting dust and serving no other purpose accept taking up space. I have never used it, and won’t any time soon. I should look into trying to sell it on ebay or craigslist, but I haven’t. So I am $200 in the dumps for a purchase I don’t have any use for.
I learned that I can’t be in such a rush for material items that come out, and certainly can’t buy something on the hopes that I may be able to afford attachment parts at a future date. I need to be more patient with my impulse buys and sleep on it to decide if it’s really worth the purchase or not. Usually it’s not. I hope you guys are smarter about your purchases than I was with this one.
Do you like this series? Check Out The Previous Foul Ups:
Foul Up #16 – Jesse (PF Firewall) – The Fine Print of Rental Properties
Foul Up #15 – Paul (Fiscal Geek) – Unsuccessfully Restoring American Muscle
Foul Up #14 – Mrs. Micah (Mrs. Micah – Finance For a Freelance Life) – How Getting Married Wrecked My Finances
Foul Up #13 – Evan (My Journey To Millions) – Speeding Up Payments on Loan Interest, Not Principal
Foul Up #12 – Elle (Couple Money) – Stretching Yourself to have a Comparable Car to Your Friends
Foul Up #11 – Revanche (A Gai Shan Life) – Sibling Bailouts Cost More than Just Money
Foul Up #10 – Brad (Enemy Of Debt) – There’s Nothing Interesting About Interest-Only Loans
Foul Up #9 – Jason (Redeeming Riches) – Buying a Car with a Balloon Payment at the End
Foul Up #8 – David (Money Under 30) – Being Too Eager to “Move Out” and “Move Up”
Foul Up #7 – Matt (Debt Free Adventure) – Upside Down and Paying The Price
Foul Up #6 – Brian (MyNextBuck) – Overdue Books Prevent Me From Renting an Apt
Foul Up #5 – Kelly Whalen (The Centsible Life) – Poorly Planned Vehicle Purchase Costs $24,000
Foul Up #4 – Stephanie (Poorer Than You) – Signed My Life Away at Age 17
Foul Up #3 – Deliver Away Debt – How I Wasted Over $10K and 11 Months
Foul Up #2 – Brian (MyNextBuck) – Quick Fixes to Weight Loss
Foul Up #1 – Brian (MyNextBuck) – How I Didn’t Earn $3000 in Free Money