Guest Post: Worth vs. “Worth It” Meets Value Purchasing

A Grumpus Introduction

Chris Pascale is back with another guest post. For those of you who don’t remember, Chris wrote both the Golden Albatrosses Killed Your Golden Goose and the Cut the Cord, Drop the Albatross  posts. Those articles continue to earn comments and clicks, which for anyone running a blog (like yours truly) is a good thing. In today’s article, Chris takes time to explain the concept of Value Purchasing, as well as reveal some of the purchases he and his wife either make, or don’t, based on their values.

Chris placed his short biography at the end of this article, and I’m sure he’d appreciate it if you checked out his other work. I personally recommend his poetry book called War Poems: A Marine’s Tour 2003-2008. It addresses many of the same issues I touched on in my pre-retirement and mental health article. With all of that out of the way, I’m turning the remainder of this article over to Chris. My inputs from here on out are limited to the pictures and captions. Enjoy!

Where Frugality Ends, and “It’s Worth It” Begins

Two different ChooseFI episodes inspired me to write this article. The first included an interview with Mrs. Frugalwoods. She discussed how she no longer spends money on makeup, pointing out (1) women are influenced to feel bad about their appearance without it, and (2) it’s expensive. Aside from the expense, some makeup is also bad for your skin because it contains toxic chemicals that cause cancer. Sometimes simply wearing it causes a feedback loop that makes you look worse without it, which means you need it more.

The second episode involved a discussion between the hosts, Jonathan and Brad, talking about how they only spend money on what they value. The conversation intrigued me. Their examples included a household with a pair of 2003 vehicles. For him (either Brad or Jonathan, I can’t remember which) and his wife, new cars aren’t as valuable as safe and reliable transport. However, while they’re cheap with cars, they will freely spend time and money on things they value.

It got me thinking: Am I spending my money on things I don’t value? This is important because I spend a lot of money!

Some of the items I’ve recently spent money on include:

  • Private music lessons
  • A summer pool membership
  • Martial arts
  • $6,000 to send my daughter to Australia for 11 months

Upon reflection, I realized it’s Value Purchasing, and I’m OK with that.

Value purchasing

Some friendly advice for your daughter, courtesy of Mrs Grumpus.

What’s Value Purchasing?

Good question, I’m glad you asked. I define Value Purchasing as a person putting their money where their values are. Hearing this, some people might think that I mean you should give more to charity or your place of worship. As long as you  meet the basic needs of your family before giving, as stated in The Word, then why not? It’s yours to give.

However, I mean something slightly different. To me Value Purchasing means you take a hard, honest look at your purchases, and say, ‘yes, if buying this means I work an extra year, it’s worth it.’ I’m not kidding. While I love the Financial Independence Retire Early (F.I.R.E.) message, and think it’s cool that the Money Moustache Guy left software engineering at the age of 31, there are some things that, to me, are just worth extra time in the workforce.

Tying this into Vicki Robin’s Your Money or Your Life, I’m not put off by the life-force trading that some of my purchases require. On the other hand, I’m appalled at some of the possibilities that come my way, and regularly say NO WAY to them. That is what my definition of Value Purchasing is all about.

So, for the rest of this article I’m going to dive into specific value purchases I’ve made. I’ll warn you, some of my purchases might be considered extravagant by some. As a result, I don’t expect you to agree with all of my purchases or the reasons behind them. After all, personal finance is personal and so too are people’s personal values. However, while reading I suggest you consider what you value and see if it lines up with your spending. If you don’t, then you won’t find much value in this mental exercise.

Value Purchases My Wife and I Make

My wife and I spend thousands of dollars on Estee Lauder products. My regimen consists of three different lotions for my face and hands, as well as a facewash. If I had more money I’d buy enough for my whole body.

Value Purchasing

Chris circa 2019. Totally … almost …not … photoshopped.

Is this anti-F.I.R.E.? I couldn’t say and haven’t asked. What I can say is that I use these products because I know they work. I was aging (as seen in the 2015 headshot below) and getting more and more discouraged with the way I looked in photos. Now compare the previous photo to the one from 2019 (above). See the change? It’s not photoshopped too heavily, I promise! Frankly, I believe if you’re unhappy with the way you look and it makes you feel bad, then you should do something about it. I did. It wasn’t cheap, but it was worth it

Value Purchasing

Chris circa 2015.               Totally … should’ve …. photoshopped?

Our House … In the Middle of Our Street?

As I mentioned in my Partial FI = Substantial Freedom post, I live in a home that needed a lot of work when we bought it. Like me at 30, it had good bones, but rough looking skin, which is why I paid to have the floors professionally sanded. That said, my wife and I saved money by staining and coating the floors ourselves.

Beyond the floors, we waited a few years because we didn’t have the money, and didn’t want to borrow it just to make the other changes. By 2017, we were ready to make an improvement, and had to decide between the following projects (of which we could only afford one):

  • Fence Replacement [it’s very old and has some missing slats]
  • Driveway [it’s dirt and grass]
  • Grade (level) the backyard
  • Bathroom replacement
  • ½ Kitchen upgrade [counters and cabinets]
  • Or wait 2-4 years to put on a dormer that extends piping for another bathroom while also gutting the current bathroom for a full replacement

In the end, we chose this:

Value Purchasing

No one panic! Chris’s kids weren’t born with a star or sun for a face. While I’m sure they’re the lights of his life, I just don’t trust the internet enough to put their faces on the web.

That right! Even though I live in a home with five young ladies (ages 8-35) and have a dirt driveway, a fence that’s totally crap, an uneven backyard, a kitchen with two broken cabinets, one bathroom (that needs to be replaced), and a house with room to expand; my wife, my daughters, and I built the playground pictured above.

The play area is more than 900 square feet, and even with doing all of the labor ourselves, it cost over $5,000 for the lumber, pea gravel, and playsets. As we finished, my wife and I concluded that this decision (which was primarily hers) was the right one. And, as kids of all ages gravitate to it when they come over, we repeatedly agree. It was a great value purchase.

Value Purchasing is in the Eye of the Beholder

Some savvy and/or frugal people will say, “doesn’t he know there are free sets on CraigsList?” I do, but after the third full day of disassembling someone’s once-amazing set, and then dragging it to the curb instead of our home, we decided not to try a fourth. Other people will ask, quite reasonably, isn’t Long Island full of public parks, small and large? It is. We not only visit them but host a weekly meetup when school is out. Dozens of people come.

I’m not saying this was the most efficient use of our funds. To say so would be ridiculous when Macy’s stock price rose about 30% in the year following (while paying healthy dividends). What I’m saying is that my wife and I placed at least equal value on it. Not to mention that the sets we bought, including the pea gravel, are supposed to last a minimum of 20 years. This means that not only will my children play on it, but so too will (some of) my grandchildren.

Does this mean my awful fence, dirt driveway, needful bathroom, and unattractive kitchen are going to be ignored? No, they’ll just have to wait a bit. When I address them, my FI timeline will have to wait a bit too.

What Can Wait

The next home upgrade is the bathroom. Had my wife not pulled the trigger and ordered the playsets when she did, I would have been at Lowe’s ordering everything for the bathroom the next day. It’s going to cost full price, not DIY rates. This is partially because I need it done fast (it’s the only bathroom in the house). However, I also want it done correctly. Could I send my wife and kids on a trip while I YouTube my way from demo to craftsman-like finishing touches? Sure, but I don’t want to.

value purchasing

You could just put in one of these Chris.

I don’t enjoy spending precious and valuable free time saving a measly few grand. Nor do I get a sense of personal satisfaction and manliness from laborious jobs, like ripping out a chain link fence or installing 500 ft of Pergo. I just think, “Why didn’t I hire someone?”

Building the playground was an exception because we all did it together. The youngest kids stood on the wood while I cut it. Three of my daughters and I raked, shoveled, and wheelbarrowed the pea gravel. And, my wife did the bulk of the playset assembly. While spreading the gravel, my second daughter and I talked about the work. We specifically talked about how some people don’t do this for just a day or two, but for decades until they simply can’t anymore. Her hands hurt for day and her back was sore, but we spent valuable time together and really enjoyed it.

The Real Cost of Upgrading, Fixing & Replacing

When I replace the bathroom, the cost will be equal to what won’t go toward retirement or paying down the mortgage. I’m willing to forgo the 22 years of interest that the bathroom money would have earned until I’m 59½. So, why would I do that? Because it’s worth it. I recently decided that a $200 pillow was worthy of holding my head (where my brain is) for 6-8 hours every night for the same reason. 

When  I plug $6,000 into the Dave Ramsey Retirement Calculator, with a 7% return I get $28,443. Is it worth it? Yes! Six people poop, shower, and brush teeth in there … plus guests whenever they visit. The walls and floor are faded, the shower has a hairline crack in the corner, and it’s simply time to do it.

What about the driveway and backyard? They’ll get done too, but later. The fence will likely be replaced after the bathroom. Not just because it’s trashy, but it’s six feet tall, which I don’t like. I’ve talked to my neighbors about putting up a four-foot fence with gates, so we can come over without having to knock on front doors, or go all the way around the block. One was enthusiastic, another was neutral, and another expressed dismay at losing “their privacy fence.” Ironically, after that conversation a big storm blew two panels down on that side of the yard which left a 12-foot opening. The kids love it.

An artistic rendering of Chris’s fence by Grumpus Maximus.

As mentioned in my Wife on F.I.R.E. post, the kitchen needs a makeover. Some of the cabinets are busted. The counters are discolored and beaten up. The floor has an uneven spot. The only thing that won’t go is the dishwasher. In the end, I’ll gladly spend $20,000 on it, or even more if it involves a solarium extension. But for now, it’s functional. Beyond these home, improvements are vacations, tutoring, music lessons, studying abroad, paying allowances, and one day (possibly) buying a brand-new living room couch.

What I Won’t Spend Money On

One thing I absolutely won’t do is sell the current home and buy a bigger, more expensive one. That would be financially irresponsible, completely stupid, and a major setback. I say this knowing that my home value has risen nearly $100,000 from what I paid just five years ago.

One reason for this is that purchasing a larger home would be a major Anti-Value Purchase. Not only do I deem that type of purchase as not worth it, but such a purchase would serve to break the eggs laid by the golden goose that are my various income and investment streams.

McMansion! Get ‘yer McMansion here! No trees, huge yard, to match your mortgage!

Personally Appalling: Anti-Value Purchases

Buying in line with your values, when you can afford it, is worth it. When you make an Anti-Value Purchase, you trade away your literal life force – the time you have on this earth – for material possessions. Or to put it more bluntly and to paraphrase a popular saying: you purchase crap you don’t need to make a statement to people who pretend not to care. OK, I actually butchered that popular statement, but you get my point! And it doesn’t stop there, because when you make an Anti-Value Purchase, it doesn’t make you happy. In fact, it upsets you.

This would be like Brad from Choose FI purchasing a 2019 Range Rover with an 84-month loan just so he could be seen at the Starbucks drive-thru … only to find that those dastardly baristas were more interested in getting coffee out the door than noting the new car smell. Since it was an anti-value purchase, this might leave him nursing alternating waves of hatred and disdain for those damned baristas and himself as he parked his fancy grocery-getter in front of his accounting office.

Value Purchasing

I drove an old, beat-up Land Rover when I lived in the Middle East. It was a total P.O.S. but I loved bombing around in it!

That’s why my biggest anti-value purchase would be buying a bigger home. Redfin.com tells me my home value rose from $310,000 to $439,000 in five years. Having recently gone to some open houses in our school district, I know that homes with some or all of the amenities we’d like are listed at about $500,000+. While I don’t mind the price, I abhor the thought of getting back into a new loan, in a part of town where taxes and flood insurance rates are higher. That would mean moving from a manageable 15-year loan with a $2,800 per month payment to a 30-year loan with a $4,000 a month payment. I just threw up a little in my mouth by thinking about it.

In Conclusion

I would willingly work another couple of years to keep my forehead from furrowing into 20 irreversible folds by using high-cost skincare products. I knowingly traded $28,443 tomorrow for $6,000 today so my family could have an amazing playground. I’ll do it again for a better bathroom in a few years.

An artistic rendering of Chris’s forehead with 20 folds by Grumpus Maximus.

However, when I think of the lifestyle inflation trap that comes with a “nicer” home; it’s unbearable, intolerable, even appalling. As crazy as this sounds, it’s also physically painful. It actually causes me emotional anguish. And, if that’s not a sign between what I value and what I anti-value, I don’t know what is.

Which brings me to this last thought. What do you value and what do you anti-value? Are there things in your life that spending money on either brings endless amounts of joy or causes emotional anguish? How many of your current purchases align with those values? I hope they all do, but if they don’t it’s never too late to make a change.  Trust me it will be worth it!

Christopher Pascale is an author, accountant and adjunct professor from Long Island. He is the former CFO of Portfolios with Purpose. He’s written articles for the AIPCA’s “Tax Matters” page, WealthyJoe.com, and others. He is also the author of a book of poetry called War Poems: A Marine’s Tour 2003-2008.

13 thoughts on “Guest Post: Worth vs. “Worth It” Meets Value Purchasing

  1. It’s all so relative, especially once you’ve exceeded all your financial goals and you can buy almost anything you want without impacting your net worth significantly. I spent $6,000 this week just to improve the heating and cooling in only one room of our house, which has over a dozen rooms. One of my running friends just got a new Mercedes that cost her well over $100k, but that is like $100 to most people, because she’s a billionaire. But on skin care? No, that would feel silly to me, I don’t mind looking my age, besides in a blink of the eye you’re still going to be a wrinkled old guy if you are lucky enough to live to eighty plus. But that goes to the value thing you so well described. It’s why I’m up at the crack of dawn with my friends cranking out some hard miles in the morning. I do not care about wrinkles in my 60’s, but I care about my health and being able to play active sports and hike extreme terrain.

    • Exactly, Steveark. Thanks for taking the time to read and comment, and good for you for keeping up your health. As a runner, do you have recommendations regarding proper gear and supplements?

      The Estee Lauder purchases are purely about vanity, and on the whole it’s not perfectly sensible, because how can I be vane and insecure about my face, but not about how my car looks? I’d love to say “it’s because I have to wear this thing around,” or “my wife has to look at this face when she’s yelling at me,” so that I might sound somewhat reasonable, but I can’t actually say why; only point to some experiences that might have gotten me here.

      For those looking to be thrifty with skincare, I recommend the generic version of Cetaphil, and for men with beards, proper hair conditioning will go a long way.

      • I find that people who know about skincare are either in show business or have skin problems that they always contended with. Are you trying to be an actor, or anything like that?

        • Hey Mike,

          I’ve had eczema since I was a kid, and at one point in my 20’s it was really bad. I’m not going for auditions to be on TV or anything like that, but have been doing live storytelling, which has led to some standup, but it’s to promote my writing, not to be on TV or in the movies, which I’m not sure I’d do if offered.

          Thanks for taking the time to comment.

  2. I’m learning so much here, like that they drive on the wrong side of the road in Australia. Thanks for another great post.

  3. Longtime reader first time commenter!

    I also feel this way. Dave Ramsey says personal finance is personal, so if you are paying all the bills you need to take care of things.

    Thank you for putting in the link to The Bible. I grew up around people that always made it seem like if you kept your own paycheck for good things or you, then you were bad.

    In the end I had shoes with worn out soles. I now work in a podiatrist office and have learned that good footwear that is not worn down is very important. If you think you can’t afford good shoes please research what bad shoes do to your back.

    • Like a fool, I once bought $10 Wal-mart sneakers, and then ran 10 miles over 2 days. One hurting foot later, I was back at the PX for for a pair of Adidas.

      That’s great that you’re peeking into the medical field, whether you meant to, or because that was just the job you got. Either way, it’s a good thing. Congratulations.

      • Love those books, but always felt weird about how much he admired the “German Ace” fighter pilot. I’m sure I’m off base, but it made me feel like he was for the Nazis when he used that one soldier (of all the world’s soldiers) as his example.

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