Accountability and Responsibility

What do you splurge on?

I know some of us regulars here are thrifty to the point of being cheap, but when it comes to “splurging” on items, what item do you spend more on than “normal” people do? Is there an item or a bunch of items where cost is less important than quality or need fulfillment?

I have 5 items that I will spend money on IF quality is there. Some of these items actually pay for themselves ten times over very quickly, so they’re an investment rather than a loss.

For me, the 6 items are:

1. A carry-all bag
2. A man-bag
3. A set of appointments (”pens”)
4. Paper and envelopes
5. Shoes/belt/cufflinks
6. Watch

I carry a lot of stuff that is very important to my business and my persona. I can be “always on the go,” needing to get on a flight out of town in hours, making it important to have my necessary items with me all the time.

The items I carry all the time are: cell phones (2), laptop, PDA, GPS antenna, chargers, appointments (pens), ink, paper, envelopes, business cards, bill-payment file, day-timer and USB cables of all sorts. I use all these items every day, so being without them could literally kill a job or contract if the item I need isn’t available. I can sell a project immediately by having the tools with me — my PDA has won me jobs because of quick access to information. The carry-all I use now is a Swiss Army logod fabric bag, about US$80 at Best Buy or any big box store. The thing is bullet proof and has enough pockets to fit everything conveniently, plus the laptop area is well padded and can be opened so that I can use the laptop without taking it out. The only downside to the Swiss Army bag is that there is no appointment holder — I like to keep my fountain pens vertical. I had to have one stitched in to hold my writing tools.

Sometimes I don’t want to carry all this heavy stuff when I’m just local, so I generally leave my carry-all in the car. For the basic stuff (appointments, paper, ink, envelopes, business cards, PDA and cell phone), I have a man-bag that I carry with me. It offers me very fast access to all that I need in a tiny bag that really fits my person well. My man-bag is a Cole Haan leather bag (picture coming) that runs about US$400. It is actually made by Medium, a customer leather shop, and sold at some Cole Haan stores. Each bag is fairly unique — you’ll never see the same one twice. While expensive, it is so well made that you can’t find anything at any price that matches. It is also the only man-bag I have seen with a proper design — the cell phone holder is actually on the strap and sits at about pec-level. It holds my writing tools and has numerous file separators so that I can sort my paperwork quickly. It even has a PDA holder and a variety of small pockets for the little junk that accumulates. The bag is VERY sharp and very masculine and suits my body structure perfectly.

A good appointment or pen is important for any entrepreneur or upcoming man. I strongly recommend going all out once you find a design that fits you; learning to write well is also very important for continuing relationships with business and friends. My current pen is a Parker Duofold which runs around US$350 for the newest model. Parker came out with the Duofold line in the 20s, and this pen fits my hand perfectly and the 18 karat nib lets me write smoothly with absolutely no hand cramping or delay. I can write for hours without tiring out my hand. I use the Pelikan blue ink with a little addition (secret) color to make a unique ink color that everyone recognizes as me.

I also carry custom paper and envelopes that I purchase from Paper Source. I use this amazing gold paper and envelope set (about 50 cents for a single sheet of card stock and the matching envelope). Because I’m known as a gold bug, the gold paper fits me well. I write about 1 letter a day average and I stick to it. I went shopping today for a new set of shoes and a belt, and the salesman was amazing. Once I got home I wrote a thank you note on my paper and addressed it to the store manager. Taking care of those who take care of you is very important, more so than a tip or just a voiced thank-you. I also follow up with thank you cards to customers and anyone I meet who helped my day or my life. I would estimate that the thank you cards have accounted for more income than anything else in my life.

Good shoes and a matching belt are really important for me in business. I dress “alternative” or “trendy-trash” most of the time (jeans, T-shirt, beanie, etc). Having some nice business shoes and a belt really finishes the look, and I’ve been complimented many times by customers with a lot more wealth than I have. They say that clothes make the man, but I believe it is more about accessories than just dress. I’ve been in meetings with some very powerful businessmen, still dressed in jeans and a (nice) T-shirt. I’ve always been invited back, and even though it is my business knowledge that gets me in the door, it is the visible display of class that seems to put me in the heads of those making the final decision on a project. My favorite leather shoes are from Aldo and are very reasonable, my recent purchase was around US$125 for a matching set of shoes and a belt.

When I wear dress shirts, I always wear them with French cuffs — the kind of short you need to wear cufflinks with. I love a good tailored shirt and I rarely by off-the-rack (my physique requires slim-fit shirts which are harder and harder to come by thanks to the obesity of Americans). I can buy a great shirt cheap, but accenting it with cufflinks really makes the look. I’m an oddity even beyond cufflinks, though, as I prefer the silk knot over metal cufflinks. Most metal cufflinks are cheap and wear down very quickly, looking terrible in just a few wears. When I purchase cufflinks I buy them for life — usually 18K solid gold or even platinum. A good set of cufflinks will set you back US$250 for a good 12 gram set, but the prices go up as the price of gold goes up. 22K solid gold cufflinks run about US$350 and are an even better purchase, but they can wear a bit quicker. I like the look of the wear and I love the value of the gold within. Platinum cufflinks are my least favorite but they’re very sharp — also very expensive. My only set of platinum cufflinks would cost around US$700, today, but are a great accessory that will last forever and mostly hold its value. All my cufflinks have appreciated between 200 and 300% in a few years. I still prefer the silk knot, but it depends on the overall outfit.

The last item is also an important item that doubles as an investment — the gold watch. I only wear 18K-22K solid gold watches, but I don’t like the typical “man” sized watch — way too big, and way too flashy. For me, I prefer to find a good woman’s sized watch with a man’s watchband (eel, leather, ostrich, alligator or snakeskin). My current watch is the “ladies” Corum $10 Gold Piece watch. This watch is around US$11,500 new but you can get it used on eBay for around US$3500-US$4500. This watch has appreciated in value like crazy as it was purchased new for about US$1500 just a decade ago. Any good gold watch should go up in value and should also set you apart from the rest of the business world. My reasoning for the smaller ladies watch is to not flaunt wealth but to also have something to talk about — the Corum men’s watch is way too big and flashy, but both watches have quite a history. Corum almost didn’t make the watch because the U.S. government made it illegal to modify or destroy gold coins. Corum negotiated with the U.S. government for a very long time in order to make these watches, which are made from 2 real U.S. gold coins that are milled out for the insides to be added. The coins are 22K with the frame in 18K solid gold.

These are items that I feel are important to splurge on — most of these items have paid for themselves 10 times over in jobs I’ve won because of the way I’ve embedded myself in the minds of others. I sell my jobs “outside the box” which gets me in the door, but it is creating the right image that helps to secure future business.

You won’t see me in a flashy car (I drive a 96 Corolla) or a flashy home. You won’t see me chasing brand name junk items that could be sold as a knockoff for 10% of the price but still be the same quality. You won’t see me splurging on items that don’t last forever and don’t usually increase in value. You will see me picking the items that make a difference in my business life, and spending what is needed to gain the quality and lifetime of service that comes along with it.

On top of all 6 items, though, nothing beats having a constant smile on your face. That would be the 7th item I would spend any amount of money on.

Discuss this article at the accountability and responsibility forum, and share what you “splurge” on.

I’ve always been what you’d call a thrifty shopper. I don’t necessarily clip coupons or skimp on lower quality products, but I do pay attention to what I consume, what I throw out, and what the sales signage REALLY says.

A recent trip to my local grocery store showed me that most shoppers don’t seem to know the basics of saving. For me, saving just US$20 a week means an extra week’s vacation at the end of the year. It is worth it to look deeper at the deals you think you’re getting.

The one big loser I see is when people try to take advantage of the “10 items for $20″ deal. This week it happened to be Chef Boyardee Ravioli cans — we don’t eat those, but the deal was “10 for $10.” If you consume 10, it is a good deal, but many stores will offer you the same individual price on just 1 or 2 cans ($1 a piece). I saw so many families stocking up on 10 pizzas, 10 cans of ravioli, 10 jars of pasta sauce, etc. Many of them figured they wouldn’t get the deal if they didn’t buy the number specified on the sale sign. If the family won’t consume the product before the next sale, they’re reducing their available cash AND using up more storage space that necessary. Even worse, if the items were to expire before used, the 10-20% savings is completely wasted.

Another big loser I see is when items go on sale, but the cost of the item is still not cheaper than buying in another size. They had smaller boxes of cereal on sale at the same grocery store, and I saw large families stocking up. But looking at the sale tag showed me that the smaller boxes of cereal were still more expensive per ounce than the slightly larger box! Comparing the price per ounce is a great way to confirm that you’re really making a savings. If you can use the entire larger box before your next purchase, you might not be saving anything at all by purchasing the smaller boxes, even if they’re on sale. I saw a similar “rush” for small boxes of fish sticks (another item I don’t purchase myself) — the small boxes, per ounce, were much more expensive than the family sized box per ounce, even after the sale as taken into account. The larger box was only 2-3 times the size of the smaller box, and most families could consume the box in short order. The sale sign grabbed attention — and sales — rather than offering a true savings.

Another area that I’ve found some savings is definitely in arranging your buying schedule better. One of my local grocery stores offers a double-coupon Wednesday, but they don’t really advertise it well. It is listed on the back of receipts, and sometimes you’ll see a sign in the back of the store, but most people don’t seem to notice it. I always grocery shop Wednesday, and the store is empty. I can see why they make this day the double-coupon day — no one was there. In the evenings it is still relatively empty.

I don’t spend a lot of time clipping coupons, but I’ve subscribed to a few newsletters that publish coupons that I can use. If anyone knows of a good service for notification of specific product coupons, please let me know. My local shops don’t differentiate between truly clipped coupons and those printed online — the barcodes are the same, and the manufacturer seems to accept them. In today’s purchase I saved about US$12 on coupons I downloaded in 5 minutes, and doubled that US$12 just by moving my purchase date to Wednesday. I also saved the headache of lines and crowds. That US$24 over a year adds another week’s vacation to my schedule, so the few minutes I spend on printing the coupons (and the 1/2 hour I save over the weekend lines) is well worth my time.

Most of this is common sense, yet it seems that the average consumer isn’t taking anything into account. Be cautious of sales signs, be aware that quantities don’t have to be met (check with your store), and also be aware that some savings are losses if you overbuy and put yourself into a cashflow crunch. Always take notice of the minor details — they’re printed there right on the aisle price tag.

A small savings is a huge way to living a more responsible life — putting you more in control of your finances and letting you live well within your means.

Discuss this article at the accountability and responsibility form.