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Nickelless
1000+ Penny Miser Member
USA
1311 Posts |
 Posted - 07/07/2008 : 17:01:47
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Nice to see that people are making use of their FRNs while they still can. Too bad luxury stores don't carry common sense:
http://blogs.wsj.com/wealth/2008/07/07/splurging-is-good-for-your-health/?mod=yhoofront
Buying overpriced indulgences may feel good in the short term, but you pay the price later. Or at least that’s the conventional wisdom.
But a study by a couple of business-school professors says splurging now makes you happier later. Even more surprising: Not splurging now gives you pangs of regret later.
Gucci shopper
Anat Keinan, an assistant professor at Harvard Business School, and Ran Kivetz, a professor of marketing at Columbia Business School, make their case for the vice lifestyle in an article in the Harvard Business Review.
One of their studies polled college students and alumni on the subject of spring breaks. Regret about not having spent more money or traveling during breaks increased with time, whereas regret about not having worked, studied, or saved money during breaks decreased with time.
The authors write: “We saw a similar pattern in a study of how businesspeople perceived past choices between work and pleasure. Over time, those who had indulged felt less and less guilty about their choices, whereas those who had been dutiful experienced a growing sense of having missed out on the pleasures of life.” (As the old saying goes, nobody dies saying “I wish I’d spent more time at the office.”)
The authors also did a study of mall shoppers, asking about their regret about buying an expensive item of clothing. Those who anticipated short-term regret bought less-expensive items, while those who anticipated long-term regret splurged. “Thinking about short-term regret drives consumers to be virtuous, while thinking about long-term regret leads them to be extravagant,” the authors write.
Luxury-goods makers, of course, will eat this up. I can see the slogan now: “Luxury: It’s Good for Life.” Or “Cartier: You’ll be sorry you didn’t.” Whether luxury is good for your finances is another matter. (Nobody goes bankrupt saying “I wish I’d spent more on Gucci bags).
Wealth Report readers, what do you think? Do the long-term benefits of indulgence outweigh the short-term risks of regret?
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Why hyperinflation is inevitable...and very soon:
http://www.shadowstats.com/article/292
http://www.ChrisMartenson.com |
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swusc
Penny Collector Member
489 Posts |
Posted - 07/07/2008 : 17:11:40
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I honestly think there is some common ground in the middle. You have to enjoy life, but you can't have everything you want now either.
If you are saving for retirement and paying your bills, then I think it is good to enjoy the fruits of your labor. Enjoying life while trying to stick others with the bill is stealing and those are no better than bank robbers in my book.
-SWUSC |
`Everybody is ignorant. Only on different subjects.' Will Rogers
"This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard." Alan Greenspan, 1966. |
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kalliergo
Penny Sorter Member
USA
32 Posts |
Posted - 07/07/2008 : 19:08:52
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quote:
Originally posted by Nickelless
Anat Keinan, an assistant professor at Harvard Business School, and Ran Kivetz, a professor of marketing at Columbia Business School...
Hmmm. Do you think there's a chance that the author's careers and consumption-oriented mindsets might have affected the design of the study and their evaluation of the results?
"It is difficult to get someone to understand something, when his salary depends upon his not understanding it." -Upton Sinclair
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misteroman
Moderator
USA
1246 Posts |
Posted - 07/08/2008 : 00:52:15
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| My Dad always makes the usual comments"if you can't pay cash for it ,you don't need it".I proceed when i'm 70 and more then enough money,I will happily remember all those 'toys' I bought when I was younger |
****Always buying wheats and Pre 82's!!!! See post or PM me for details****
http://realcent.forumco.com/topic.asp?TOPIC_ID=2014 |
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Article: Splurging Is Good for Your Health
