Big Spenders Living in Denial

The current issue of Details has an article about people who refuse to scale back on their spending, either because they are still making a lot of money despite the recession or because they insist on keeping up appearances even if it means going deeply into debt.

In the article, you'll meet the following unabashed overspenders:

• "Paul," a 43-year-old with a household income of $2 million a year who refuses to stay in a hotel that costs less that $1,000 a night, flies business class between the US and Asia and is blithely going over-budget on a $1 million renovation on his house in the Hamptons.
• "Jon," a Manhattan commercial-real-estate broker who was earning in the "high six figures" until the crash, after which his commissions "nosedived." Despite Jon's reduced earnings, he continues to buy increasingly expensive suits. He's also addicted to expensive watches -- he paid $2,000 for his first, $6,000 for his next, and his most recent timepiece cost him $10,000.
• "Mark," a 41-year-old executive who makes a six-figure salary but fell into debt because he doesn't believe in self-sacrifice: "I have a sort of moralistic self-righteousness that I deserve good things," he says. "And because I'm surrounded by luxury all day, I know what's good quality and what isn't."

It's easy to criticize Paul, Jon, and Mark. But if I look at my own spending habits and how they've changed since the recession began, I realize I share some traits with these three big spenders. I've certainly cut back on vacations, gadgets, computers, clothes, and other costly things, but I still insist on treating myself to 5-lb bags of Black Cat espresso beans from Intelligentsia coffee and a weekly date with my wife that involves a baby sitter, dinner at a nice restaurant, and a movie or a massage. (If I keep thinking, I'm sure I could come up with other lavish habits, but I'll stop now.)

Instead, let's talk about you. What indulgences do you keep indulging in, even though our economy is still in the dumps?

Mark Frauenfelder – Editor-in-chief of MAKE magazine and the founder of the popular Boing Boing weblog, Mark was an editor at Wired from 1993-1998 and is the founding editor of Wired Online.

Comments

[Eadwacer]

My big indulgence is ...food. I've had this love affair with it for years, and I just can't give it up.

In the morning I love that big cup of oatmeal. OK, so in this economy it's a little thin and tasteless, but still drinkable. Then, for lunch, some more of the oatmeal, this time jazzed up with some of those little blue packets of stuff you can get at McDonalds. And for dinner? For dinner I go wild with a whole can of meat. Well, not a whole can, because I do have to share some with the dog. But still, half a can of food is better than nothing, and it's all meat, or mostly -- there's some, you know, processed chicken parts and rice hulls, but you can't hardly tell they're in there, and they do provide a balanced diet.

Food. Ya gotta love it.

[Lyrker]

It's impulse buying little things that's my guilty pleasure. It's so easy to justify a $5 bath bomb or a $10 sticker book for the kids or $20 for a quick fast food meal for the family. At the end of the week it all adds up and I know I should be better about it but individually the little things seem such a trivial cost for the pleasure they bring.

[gaininja]

@Eadwacer - my guilty pleasure IS oatmeal - I live in Japan, where it's really expensive, and on Thursday I paid ¥859 ($9.53) for a 1kg bag. Damn it tastes good though!

In general, I subscribe to the "do I really need this?" school of purchase decision making, so don't buy much, recession or not.

[iWood]

My indulgence is paying down my debt as fast as possible, which means I'm constantly cash-poor and have no savings.

[Rampage]

I wouldn't be caught dead in a $10,000 watch. What garbage.

Next I'd be driving a Japanese or, cough, American car.

Recession or no, keep your standards!

Some people!

R

[Sean]

My biggest change has been buying merino wool underwear, wool socks and a wool overcoat. Highly practical as the easiest way to save money (at least management in our company thinks so) is to turn the thermostat down. Pretty much my luxury, except eating real food, otherwise everything else has hit the chopping block. Oh, and I'm debt free.