Dear Dave,
My husband will be finishing physician assistant school in December, just a few days before our first baby is due. Weāve got about $70,000 in student loan debt, and weāre trying to get everything paid off. Both our cell phones are pretty old, and Iād like to get a new one that costs $350 so we can have really good pictures of the baby. My job is the only income we have right now, and Iām making $45,000 before taxes. Is this a silly thing to do in our situation?Ā
Jamie
Dear Jamie,
This is an important question. Itās not important because $350 is a big deal in the grand scheme of things, itās important because youāre making a judgment call as to what youāre focusing on and what you value.
If youāre focusing on your husband finishing school, so his income goes up and youāre trying to get out of debt, that fine. I love it when people are willing to work their tails off to have better lives. But if thatās your focus, and at the same time youāre trying to rationalize buying something you donāt really need, thatās a bad thing. You donāt need a new cell phone for a camera, especially if the camera is the only reason youāre buying it. You can find decent digital cameras everywhere these days for $50 or less.
I understand the joy that goes along with having a child. I have three kids, and we were absolutely ecstatic each and every time one was born. And, of course, we wanted good photos of them all. But right now, I think youāre trying to rationalize a phone upgrade based on the emotion of a new baby. As an exercise of your value system, thatās a tendency you need to break. This is a test, Jamie. What youāre talking about here is a luxury, not a necessity. Rationalization is one of the prime causes of overspending.
Please understand, Iām not picking on you and I donāt mean to be harsh. Weāve all flunked this test at times. But this is an important moment where your judgment and values are concerned. Itās your call, but you really donāt need to blow $350 on a new phone right now.Ā
āDave
*Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money Makeover. The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.