“…ay, there is the rub!”
Apologies to Shakespeare for paraphrasing Hamlet, but this is the core of the issues most folks have with their finances: It is mostly possible to spend your way out of a problem. Unfortunately, it usually means you are also spending your way into another problem.
I am as guilty as the next person in this area. Instead of taking the bitter financial pill and dealing with a bad situation, I have spent my way back to where I wanted to be (however, leaving me with a large bill that I must then pay off later).
My Father had an expression that he liked to use when he felt someone was being cheap: “That is what money is for”, which is true, but I am pretty sure he was speaking in the context of spending money, not using debt. My parents were of a different generation, where thrift was a necessity (I think once you have lived through enforced rationing, you learn many thrifty ways to live your life), but I think my Dad’s advice now is more like trying to put out a house fire with gasoline.
There are situations where spending your way out of a bad situation might be a good idea, but I am pretty confident that there are not many situations in anyone’s life that they should keep doing.
The example I have is to save myself driving a long distance I am flying in and out for a day, which isn’t a huge overspend on my part, but I am sure I will feel guilty that I didn’t “man up” and drive both ways. However, I can hear my Dad saying, “That is what money is for”, in this situation as well.
However, I know a friend whose 11-year-old car needs a new battery, which raises an interesting question: Is this a precursor to worse things happening, and maybe a new car is needed, or is it time to replace the battery and keep going? There is the rub!
I don’t think a new battery is necessarily an indicator of needing a new car. They are made to last a while and as far as car expenses go are pretty cheap. If there’s other problems going on, though…then it might be better to put the $80-100 towards a new ride.