Spending Comfort Levels

This weekend I went to brunch and then shopping with two friends. These two friends have shall we say a well-developed appreciation for the finer things in life. They think I am a total cheapskate. So we were strolling through Nolita and I saw a beautiful bag that I decided I wanted. It cost $400. To me, that number is ridiculous. But, I wanted the bag and could justify it because I knew I was getting a big tax refund this month. So I bought it. But it just did not feel right. Mostly because I thought it was too nice to really use. I would worry about ruining it and it would be impractical. So the next day I returned the bag. I did get a smaller, more practical bag that cost less (I was too scared to look at the actual price, but it started with a 2 and not a 4, but closer to a 3). And I got a pair of shorts. So I spent about the same, but on two items. This felt much better. I just thought it was funny that I felt almost physically uncomfortable spending so much money on a bag. I know my friends that I was with never have that problem. That said, it's good to splurge every once in a while, as long as its not on credit.

Losses and Gains

So I finally just finished my taxes. After a gruelling search for the cost basis for a mutual fund I sold that I'd bought in 1998. The good news is that I found it. The bad news is that I sold the fund at 1/2 price. And i held $10,000 of it. So I had $6,000 in recognized losses this year. Ugh. The good news is that I am now getting a tax refund, whereas without these losses I would not be. Also, I have $3K to carryover to next year! I guess that is also a good thing, in a way. What would be better is if I could make better investment decisions and pay more attention to my investments. But I guess I shouldn't be too hard on myself since 2008 was killer for everyone.

Can't spend enough

There's one thing that I think it's more than okay to spend on. In fact, I can't spend enough on this! It's my health. Okay, that's how I wish I felt. Sadly, I sometimes delay health spending that I need (not critical, but still). That has backfired in the past. In grad school (sans dental insurance) I waited a year to get my teeth cleaned. For most people, probably not a big deal. For me, I knew it could be bad. And it was. I eventually had pain and was then forced to go get a cleaning. However, because I had waited there was so much plaque they had to do it in two visits, hence costing double the normal amount.

So I realized finally hey, I have health and dental insurance. That is a luxury in many parts of the world. I should take advantage of this. So I'm going to the dentist, eye doctor, a therapist (mental health is important too), possibly the acupuncturist and the orthodontist. This in reality shouldn't cost too much, due to my insurance. However, the orthodontist could be a couple of hundred dollars and the therapist could be several hundred dollars a month. I'm forcing myself to spend this money, because there is nothing more important to spend on. This is what my FSA is for, so it's nice to know it will be tax-free money at least. Now I wish I had dumped more in there.

Wiser Bloggers Than Me

Have already outlined the costs of owing a dog. I think Lazy Man is in Silicon Valley, so his costs are probably not that much less than in Brooklyn.

Purposely Making a Bad $ Decision

Have you ever done this? I was about to write that I have not, but then I think back and that's how grad school was for me. I more than wanted to go, I needed to go. I was never under the delusion that I was going to earn more money by doing so. I knew I would be spending $50,000 for something that would not get me a monetary return. If I had instead bought an apartment and continued to work full time at my previous job, I would be financially better off, most likely. Even though the value of that apartment would have gone down by now, I think I'd still have some equity. I was going to buy in 2003, so during the craziness but pretty close to the start of it. My area of Brooklyn has gone up so much from the bubble, but also from gentrification, since then.

Anyway, I'm contemplating making another bad financial decision. I want to adopt a dog from my local shelter. Not just any dog, but a boxer, on the wrong side of 5 years old. I don't know dog years, but I'd guess he's in middle age or older. (He doesn't seem it and has no gray yet). What does this mean financially? Huuuuge expenses. Expenses just for being a dog, but then for being a dog in the city, being an older dog and being a bigger dog.

The costs are daunting. Medical care could be exorbitant. OMG what if he gets cancer, as I read that boxers are more prone to than other breeds? Do I seriously have to pay for dog chemo? I've read pet insurance, especially in urban areas, is hardly worth it. Then there's the daily dog walker and the care for when I have to travel for work. I have no control over my travel, so if it suddenly picks up, I'll be spending $50 a day or so for someone to care for the dog. Oy vey.

That said, I have the money to care for the dog as my life is now. However, my rent is very low and if I wanted to buy an apartment or move to a place actually in Manhattan or somewhere bigger, it might be tight.

I'm continuing to do the research and will come to a conclusion, but I feel like that a dog could add so much to my life that this could be a sound decision, despite the financial costs.

This is so depressing

Really, ladies? $13,000 on makeup? Granted, it's over a lifetime. But, still.

With that said, one of the things I have to spend money on soon is new makeup. I like eco-friendly, non-tested on animals makeup, mostly MAC, so that prevents me from picking up makeup when I run into the pharmacy for medicine. Quality is better than quantity in this case, and I think it saves me $ in the long run. I only buy makeup like once every 5 years. What do you think ladies? $13,000 seems insanely high to me. Maybe if that figure included hair cutting and coloring. Actually, then it would be low!

Morningstar X-Ray

Earlier in the summer I spent a lot of time trying to analyze my holdings across all of my accounts (I have 2 401Ks, 3 IRAs and two taxable accounts). I complained that I couldn't find a good tool and a reader recommended the Morningstar tools. Today I signed up for the free trial of the Morningstar X-Ray.

The analysis was a good confirmation that I have balanced portfolio. It also confirmed that I have a higher weighting of mid and small cap value and growth funds than the Wilshire 5000 at least.

For next steps, I'm thinking of buying some GLD and some more bonds -- I only have 9% of my holdings in bonds.