personal Finance Story

Mac Mini

Ok, I’ve never owned a Mac before. All I’ve ever known is PCs. I’ve watched all the ads and the thought occurred to me that I had never even considered making a movie on my PC before. And supposedly, a Mac can do that right out of the box. Very intriguing. Its not just about movies but the whole user experience. I’m willing to at least wonder that Bill Gates may not have exactly what I’m looking for in a home computer. I figure that a Mac Mini would be an affordable way to ease myself into the Mac world to see for myself if it is really worth it.

Why should I skip the Mini? I don’t think I would be able to live with myself if I didn’t get at least several key upgrades such as RAM and hard drive space. My technological lust would surely push the price of this purchase to a very non-mini size. I have a perfectly good and working PC from Dell and I just can’t justify another computer purchase.

Home Theater PC

Honestly this one has everything to do with the geek factor. Pause live TV, record shows for later viewing, download recorded content to watch on the laptop. My inner nerd craves that kind of power! No living room is complete without DVR capability.

Why is there no Free-vo for me? It would be something I would show off to friends when they visit, but I doubt I would get much use out of it myself. I just don’t watch that much TV. I spend the majority of my entertainment and news from the internet anyways. And I doubt I would be able to get one for less than $800 anyways.

Paintball Gun and Gear

I used to play quite a bit in high school and on into college. I have a lot of fond memories running around in the woods and shooting at my friends. Good times! I was actually quite good in my day. I was a bit slow on the trigger but I was accurate and had fast legs to get myself behind the best trees.

Why won’t I buy it? It has to do with the recurring cost. Each time I go out and play I know for a fact that it will cost at least $100 for paintballs, high pressure air refills, and other related consumables. I love the game, but don’t see an extra $100 a month becoming available on a regular basis. I have enough high cost hobbies as it is.

iPhone

Forget the phone and the iPod. All I want is the internet in my pocket. I’m a tech-head at heart. I love my RSS feeds, web forums, and other web based news and entertainment. Sadly, my work is very restrictive when it comes to employee internet usage. I can hear you all already, “It’s called work for a reason!“. But seriously, I don’t need much, I’d like to be able to at least check my personnel email, but thats not possible. An iPhone would allow me this and other subtle luxuries during my lunch break. And maybe a few other times throughout the day…

Why do I sense an iPhone-less future? First, I’ll wait for a new 3G version that supports both Flash and Java and also proper third party applications. Beyond that, and the staggering upfront costs, it’s about the recurring costs again. The cheapest plan available is $60 a month. That’s $720 a year. Ouch.

Golf Clubs

I’ve only played golf once in my life so far but I did enjoy it despite a final score of 130. There was a certain comedy to our inept attempts that struck a cord with me. It really didn’t matter that we were all bad at it. The point was to get away for a few hours and shoot the breeze with friends.

Why Wii golf is the only golf I’ll be playing this summer? Having clubs is nice, but then I’ll have to pony up for fees, spare golf balls (lots of these!), and other misc gear.

Do I sense a theme here? Three out of the five are consumption drivers. Those purchases demand that I spend more money on a regular basis in order to fully enjoy them. What use are paintball gear, iPhone or golf clubs without paintballs, a wireless plan, or greens fees?

The other two? Well, they are just not really what I need right now. They certainly are what I want but I have to be mature enough to realize that the quality they would bring to my life would not outweigh the advantages that same money would bring me if invested properly. There is a lot I want to do in this life and I won’t let frivolous purchases hold me back.

I subscribe to a variety of personal finance bloggers RSS feeds. The majority of them, with a few choice exceptions, hearken readers to take steps to reducing their expenses and spending. I enjoy reading all of the creative methods to save a buck here and there. I’ve put some of those ideas to practice in my life.

• All of the lights in my apartment are CFLs
• My cell phone is old and scratched
• My jeans are well worn
• I make a list before shopping for food

But it is not enough. It never is. No matter how much I cut spending I will never be wealthier than my 60K salary will permit. I put away 10% of my salary (including my company match) into my 401K. In time, I hope to be saving over 15%. This approach will allow me to retire at a ripe old age with an income comparable to what I earned during my working years.

My younger brother works in retail. If he follows a plan very similar to my own, he will be able to retire comfortably as well, but his retirement income will be scaled according to his own income.

Someone out there please tell me how a person making 25K a year can retire early on a inflation indexed income of 50K. It can’t be done. That individual needs to start making 50K in order to make that happen.

I find myself in a similar predicament. I want much more for myself and my family. More than I can provide even on my admittedly generous salary. Frugality is not enough. I need to earn more to make my financial dreams a reality.

Comments on the topic would be greatly appreciated.