I gotta agree with the knife thing. You don't need a whole big set of knives. One high quality chefs knife and a steel to let the edge last longer is just fine, though it's nice to have a good quality slicing knife and paring knife as well.

If you cook a halfway decent amount, once you use a really good chefs knife, it's hard to go back.

Yes, I can relate. I'm one of those Slickdeals cruisers who usually won't buy anything from a store unless I get a discount. However, that didn't stop me from buying a $2,500 latex bed (I paid $1,800, of course!)

While I agree with the article's comment about millionaires - buying gently used is (IMHO) the BEST way to save on big-ticket items - I've just furnished my living room with 1/2 year old quality furniture from Craigslist for about the price it would have cost me to buy a room full of crap from Walmart/Ikea.

One of the problems is that these days discerning the difference between "quality high-priced" item and "over-priced ripoff item" is very difficult. I've bought expensive jeans/shoes etc. that have fallen apart and I've bought $10 jeans that have lasted me years.

My rule of thumb is pretty much: Buy the cheapest item that is still decent quality - so when I bought a TV I got a 42 Phillips LCD on sale instead of going with an "off-brand", when I bought a home theatre I bought a cheap Sony one. A perfect example of buying quality but not the overpriced version is in cars - buy Nissan/Toyota/Honda, don't be sucked into paying an extra 10 grand for Lexus/Infiniti etc. when the quality does not increase in line with the price premium.

hm.

For my family:

Computer: Splurge -- for a factory refurb. So I guess that's Splurping? In almost 20 years I've never had one go bad.

Food: Splurge -- buying cheap crap exposes us to flavor enhancers, chemicals, byproducts and generally unhealthy stuff.

Sofa: Skimp -- in 10 years we'll want a different style anyway. Oh, damn, it's almost been 10 years too.

Other consumer electronics: Skimp - their lifespan will be short and their technology will be eclipsed in less than 2 years.

I'm guessing the millionaires don't buy cheap crap because they don't have to.

I know too many people in the area where I live who don't exactly have the choice between buying something quality, or something they can simply afford. They aren't replacing those cheap winter coats every year, either.

It's good advice, but we don't think you should think of it as "spluging."

That's a fun word in which to omit an "r."

Maybe I am in the minority, but I have bought 1 coat in the past 8 years. Is it common for most people to buy a coat every year?

I totally agree about knives, buy a good set and keep them honed/sharpened and they will last a lot longer than a bunch of sets of cheap flimsy ones.

@bonzombiekitty: I completely agree with the knife thing too. I've gone through a ridiculous amount of cheap knives, but got really good ones for my wedding. Not only are they high quality they cut through everything so much easier and make cooking much quicker so we can move on to the eating stage.

Pots and pans - splurge. It'll get you to cook more, which will save $$$ and is healthier for you. Also, a good set can be left in the will if you take care of it.

As many have said here, the big takeaway is "Buy good quality and use it longer is the way to save money" while the word "splurge" may not be the most appropriate, I think they are trying to say feel free to spend money on something if you will get enough use out of it to justify it.

Furniture is good in high-quality (our bookcases are from IKEA, sure, but the sofa and mattress are good stuff) and shoes. Especially if you live in a city where you'll do some walking instead of just driving (and I always have lived in walkable cities -- Boston, New York, DC), it's totally worth $100 for a good looking pair of sturdy, comfortable shoes that will last a few years.

Our culture has created a demand for the latest thing. The latest fashion trend, the newest gadget. Of all the people standing in line for the newest Iphone, did any of them not already own a cell phone or two or three? This wasn't a need, it was a want. People with fragile self-esteem falsely tie their self-worth to the things they own.

For me, given the choice of a $100.00 designer shirt, I will buy 10 $10.00 shirts. I'd rather have the greater quantity, (10 things to wear instead of 1).

Similarly, I'd rather buy a $400.00 sofa at Jennifer Convetibles that will last 5 - 10 years, instead of a $3,500.00 couch at a Pottery Barn. When styles change (or I move, or I redecorate, or I'm just plain tired of it), I can replace the cheap couch without guilt (donate or sell).

Where don't I skimp? Organic food, & health care. I've never understood people who shop for medical procedures, like the cheapest Lasik eye surgery or the cheapest facelift.

I have to say that I also agree with this. I have 1 high quality stainless steel chefs knife I use for most things with a matching pairing knife. The rest of my knives are an old set of High Carbon steel that my cousin gave me when he retired as a Butcher. That stuff gets SHARP, but will corrode at the drop of a hat.

So I use the Stainless for everyday stuff, and then keep the High Carbon for when I need to do something specialized.

I see the High Carbon knives in the thrift store all the time.

The few expensive things I buy I look into carefully and get the best I can afford.

@novacthall: Spelling and grammar issues should be emailed to the editor - not aired in comments.

Ever since my own incident with cheap crap I have been very selective when buying anything. Not only is it very difficult to find some quality items, it's costly. I have had to make the choice to hold off buying quite a few things because of the quality issue. I definitely stay away from walmart, and I try my hardest to avoid made in china....NOT easy.

@PinkBox:
I agree. I've said every year for the past five years that I would start saving up money to get one or two really high-quality staples for my closet.

But every year, I fail and just buy what will hold me over until I get slammed with a speeding ticket, car-repair or emergency trip - dreams of quality items out the window.

If I had EXPENDABLE cash to spend on quality clothing or furnishings, then I would absolutely spend it on the best quality item I could find. But since my funds (and I wager most Americans')are not incidental, I have to purchase what I can afford - which is rarely the best item.

Maybe we just believe the advertising hype too easily.

Has anyone actually ever bought Chef Tony's amazing knife set (and then chopped pineapples in mid air in slow motion)?

i have a lot of friends that live by the buy cheep rule. it amazes me how they will repeatly buy all this cheap junk when you can get high quality stuff on sale, if you are willing to put in the time.

my splurge is sheets. they have to be 100% cotton and at least 400 thread count.

I think the problem stems from lack of consumer research. I was in the market for a TV twice in the last two years. Both times I got winners, because of research, and they both happened to be cheap sets at the box electronics stores.

I tend to skimp on automobiles, I buy a used one every 5 years or so, new cars are a joke. I upgrade my homebuilt PCs instead of buying prepackaged shite and do my own home/automobile repairs instead of paying out the nose for someone doing crappy repairs. I skimp on clothing, I splurge on what I enjoy (bicycles, music, home theater) and what makes me happy (wife).

High quality my ass! Spending more doesn't buy enough of a quality difference to make it worthwhile. It's all cheap crap, no matter what you pay.

First of all, I learned to shop from going to Paris pretty regularly (and because I'm frugal, I'd go for a month in July, swap my house in Los Angeles, and fly frequent flyer then, when it's most expensive). I haven't gone much lately because of the euro. Anyway, they buy a few beautiful things there...not piles of cheap crap, and keep it for years.

Here, hiliariously, Barbara Ehrenreich is whining in her new book that "the sad truth is that people earning Wal-Mart level wages tend to favor the fashions available at the Salvation Army." Oh, please. I'm a nationally syndicated newspaper columnist with a book contract with McGraw-Hill (for my second book, thanks!) and *I* "tend to favor the fashions available at the Salvation Army."

What kind of moron shops retail? I must confess, I do sometimes shop designer resale. Designer resale off the sale rack, that is. Like, I got a gorgeous Halston evening dress for $30 this spring. And I buy clothes on eBay for $10 or $20. This means I can pay my assistant as much as possible, save a little money, and not live on my credit cards like so many dipshits do.

Oh yeah, somebody just took a bunch of photos to illustrate an article they're doing on me for a libertarian magazine. I could've worn a jacket from my favorite young (but not too expensive designer in France), whose really inventive and beautifully made jackets or pants I buy on sale for $120 eu or so, one or two a year. But, instead, I wore a really sexy shirt I got at the Salvation Army on 11th in Santa Monica for $5, and a necklace I got on eBay for $3. Okay...to be entirely truthful...plus shipping, I think it clocked in around $4.22.

When faced with the question of "Do I buy the cheaper one that I can afford now or do I save my money and get the better quality one later?" Many people will choose the former. They figure they can have the best of both worlds. Look at the mortgage crisis. So many people bought real estate they couldn't afford because they thought they would be making more money later down the line and be able to afford the payments when they went up.

I think that masonreloaded hit the nail on the head: Consumers must be aware of both product (or service) grade AND quality when shopping. MSN Money seems to suggest that consumers' decreasing ability to judge quality has tipped the balance of power in suppliers' favor. Yet the internet would seem to offer shoppers more comparative analysis and better price discovery than ever before. Is it a case of information overload? Or a lack of discipline?

@Letsgohokies: no, I bought a coat from 'Structure' (now Express Men) about 6 or 7 years ago, for $20 on sale. I live in MN too, so you know I use it. But I have a hard time seeing a correlation between quality and price--to a point (and that point is usually above my budget). Especially after traveling to Shanghai and talking with people who worked in the factories that make brand name clothes...it's exactly the same way they make regular clothes, maybe with a marginally better fabric.

I buy cheap if it's something that will wear out either way, i.e. gym clothes vs. dress clothes. Suppose a cheap knife can last 2 years and 4 with sharpening. Now suppose a real chef's knife costs 10 times that. Will a real chef's knife actually last 20 years? Maybe. But in that time, it's much more likely that I could stretch a cheap knife to 4 years, and have bought 5 of them and still be 1/2 the price of a "real" chef's knife. That's not to say there might not be other benefits to a premium product, you just have to figure out if the premium benefit is worth the price. If you have kids, a premium cloth couch is an incredibly stupid idea, because it will have grape juice spilled on it in short order.

It's easy to figure out. Don't spend big bucks on things you consider replaceable. Some people consider vehicles to be this way, since they always want a new car to drive. Solution? Leasing.

For other things that can't go out of style, or are more permanent, like, say, your kitchen (and its components including food), Spend more so it lasts longer.

I really don't understand when people buy a cheap set of pots & pans or dishes, when you can spend maybe twice as much to have something last a lifetime.

Knives: I tore out and installed a new kitchen in my house. I sold an SUV that I owned outright to pay for it. Then I bought my 10" Wusthof chef's knife, and realized what a waste of money the new kitchen was! (And I miss the Expedition for weekend romping around [never for commuting]). Yeah, it's that good. I'm saving my pennies for replacing my other knives one-by-one. Funny thing is, my wife just loves our cheap, stamped, dull, throwaway knives for some reason!
Cookware: Another thing that's worth the money to get the good stuff. Luckily, I'd been aquiring the good stuff before the kitchen remodel, so I don't feel as bad about it. Again, my wife would beg to differ: she likes that cheap non-stick crap from the discount store. Good cookware is also readily available on Craigslist, and (don't laugh) at the charity stores -- Salvation Army, Goodwill, St. Vincent de Pauls, etc.
Shoes: Yeah, as above, don't get the Chinese made cardboard crap. What a waste. My Red Wings may (or may not) be made in China, but they last for years, stay comfortable, and customer service is always supurb.
Clothing in general: Thank goodness I know what to look for. Sure, I still buy lots of junk, but often the good stuff just isn't handily available. I have to plan and make special trips to the right stores for "the good stuff."

From what I've observed, one of the main causes is the urge to save money - period. Unfortunately, most people (myself included, sadly...) only look at the "immediate" price, and not the longer term costs. My main issue is shoes - I buy the cheapest pair of shoes that have velcro fastenings, from Payless/Walmart/Kmart, when my older pair is falling apart. (And I do mean falling apart - my last pair looked like I ran over them with the lawn mower!)

Yes, I am fully aware that I could probably spend ~$100 and get a pair that would last a number of years, as opposed to 3-6 months. But:
1) I don't want to spend the time to find a "great" pair of shoes.
2) The cost of my current shoes is less than a meal at Arby's...

For me, the short term benefits outweigh the long term cost. Fortunately, this is about the only thing I buy regularly - Coats last me for years, and then I usually get a free one from work. Furnature isn't an issue - our house is too small to store a lot, so we only get something when the old one breaks. I've had 3 TVs over the past 20 years, and 2 of them are still in service. We still have the same knife set we got ~20 years ago, and they work for most jobs.

I have to agree with SkokieGuy - health care is the one thing I will pay extra for! I had Lasik surgery last year, and I went to the best place in the area. My eyes are too important to go for "lasiksRus", or whoever keeps spamming me...

Women too should buy the best classic pieces - jacket, suit - even if you're in a non-suit wearing profession, you'll need to trot it out once in a while for interviews and such. Buy them on sale.

Don't skimp on everyday shoes and sneakers, either. But if you're going to a party or have to have cute summer shoes for the beach, it's Payless all the way.

Buy good bras, cheap panties.

@novacthall: About the "spluging" thing, I think that one of the bloggers from Fleshbot slipped past the guard. Next time, keep a stiff upper lip, and just look the other way. (We're Consumerist; no irony, please.)

Spend on the SHOES. Weather you wear dress shoes or work boots to work every day, BUY THE GOOD ONES. I have a pair of $100 black leather pumps (2.5" heels) I walking-commuted in for two years IN THE PUMPS because they were comfortable enough I didn't need to swap for sneakers. I've worn them when on my feet for eight straight hours. I wore them non-stop for nearly 10 years before deciding the creasing in the leather was showing enough that I should get a new pair at least for court and interviews. Had I bought cheap crappy $20 pumps, they would have hurt my feet and generally lasted a year each. Then, for the love of God, people, TAKE CARE OF YOUR LEATHER. Your purses, shoes, coats will last five times as long if you treat and protect the leather once a year. (It's skin, it needs moisturizer.)

I can tell from across the room if someone's wearing cheap shoes. Or a cheap suit, for that matter. :) But for bar shoes? Cute $20 trendy things are fine. Who cares if they hurt if you'll be in them for three hours at a time and get beer spilled on them?

I use two measures, which are basically the same measure, one for occasional-use and the other for daily-use: Cost per use and Length of service. Shoes I'm looking at length of service -- this $100 pair that lasts 10 years will be cheaper in the long run than 10 $20 pairs that last a year each. Cocktail dresses you're looking at cost per use -- I'll wear this five times this year, so this $200 dress is $40/wearing; whereas if I get this trendier-but-cheaper $100 dress that I can only wear twice (as it is inappropriate for some of the events), it's $50/wearing.

My mother started me doing this when I was about 13 and had clearly achieved my full adult height. :P It's surprising how much high-quality stuff you build up over a decade or so, which makes it stop feeling "expensive" because I'm rarely replacing things.

Right now it FEELS expensive for funiture and some housewares because we're upgrading from college castoffs to real grown-up furniture (slowly, piece-at-a-time), but I know once we get a few things in and they're ready to last for 20 years, that'll stop feeling expensive too, because we'll know we don't have to replace anything.

Another thing I like to do is accessorize; classic, high-quality clothes you'll wear for years can be trendied up and made interesting by scarves, pins, inexpensive tops, etc. Even overcoats. :)

When I'm looking for something, let's say a pair of pants, I start at the thrift/consignment shops, work my way up to Ross/TJMaxx/Marshalls, and if I haven't found something of appropriate size/fit/quality, I move on to the outlet malls. I never step foot in a Target, or the regular mall, unless I know it's something trendy that I'm only going to wear once. And that's so rare it hardly ever happens.

It'd be interesting to hear what other people find to be quality brands. I've bought both a pair of True Religion ($13) and Diesel jeans ($1) and found the quality of both to be much higher than regular jeans. Banana Republic stuff seems to be about average.. not terrible, but not usually worth the money to buy new, either. Anne Taylor and Talbots is about the same. Van Heusen holds together really well, even through repeated washings, but the dyes they use seem to fade more noticeably than most. Easy Spirit and Naturalizer hold up really well; Nine West doesn't seem to last at all. Anybody else have brands they want to recommend or un-recommend?

@xphilter: "But I have a hard time seeing a correlation between quality and price"

That's part of the problem, and the article touches on it -- I'm often the only person in the store turning clothing inside out to check the seams. There can be two $20 skirts right next to each other on the rack; one is a better fabric with finished seams and a lining; the other is cheap synthetic with unfinished seams and no lining. 90% of the people are only checking price; they don't know enough about construction (or fabrics) to know if it's good or crap.

One wedding I was in I got really frustrated with the bridesmaids dresses (well, they WERE bridesmaids dresses) which were made with a cheap-ass $4/yard satin with unfinished seams, half-lined, and cost $180. The bride kept pointing out that they were "really nice" because they cost $180 so they were "high quality." (And we could, of course, "wear them again" -- no, the $4/yard satin makes them look like sleazy prom dresses NO MATTER WHAT.) She'd never heard of the concept of "finished seams."

My husband's favorite jacket, 8 years and running, is also from Structure. :)

I think a lot of it boils down to the fact that (a) we all like 'new' stuff, (b) we have been geared towards replacing things every few years, and (c) so many items have become technologically based, which usually have a shorter overall life cycle.

That being said, most of my furniture was built by my grandfather, and is solid beyond belief.

Chef's knives are a good example of an area where price doesn't reliably correlate to quality, though--Cook's Illustrated's top scorer was a $30.00 Swiss job, and it's freaking brilliant. It's also a very different manufacturing world now, so the high-end cashmere coat is likely made in the same factory as the T. J. Maxx version with the plastic buttons--and it's easy to replace those with nicer buttons. That's where our unfamiliarity with markers of quality means we throw up our hands and buy by color or buzzwords or packaging, because paying more doesn't guarantee a more rewarding investment.

SkokieGuy also hit on the head another important contemporary consideration--we like variety. Even the CNN article's author, rhapsodizing about her mother's coat, says she wears it once a week; she hasn't made it a daily coat in the way her mother did, she's just inserting the classic garment into the contemporary different-every-day wardrobe rota.

I didn't know corporate America made anything that lasted more than 18 months anymore. This is the problem with buying American, from the Detroit automakers to clothing retailers.

The Samuel Vimes 'Boots' Theory Of Socio-Economic Injustice: [en.wikipedia.org]

Props to Terry Pratchett for nailing it.

I've thought a lot about this in the context of consumer electronics, particularly DVD players, etc. People used to buy $500 decks that would last 10-15 years, but now people buy junk for $30 that may last a year. Ultimately, the top end frequently has too little to differentiate itself from the bottom except for build quality, and electronics become obsolete so fast that there is little incentive to pay more for something you won't want to use in 5+ years (or maybe even 2).

@mir777: I agree with everything you said, especially the part about the underwear. :) I also think that if you take care of things you buy, they will last a lot longer, no matter how cheap they are. I have bought $10 shirts that have lasted me for years because I always hang them up, never leave them laying around on the floor where they can get stepped on, take them off once I get home from work, etc.

Wow. I have to say I think $90 coats are a splurge. Sigh. I are definitely staying away from Ikea and such places when furnishing my new apartment.

Shoes are always something you need to spend money on. I have a pair of Doc Marten oxfords that I used for work for several years, and they still look brand new. I've gotten to buying cheaper shoes recently, and I really notice the difference. They rub my foot and don't breathe. I am currently looking at Birkenstocks to find sandals that won't fall apart in a few months.

Food: I cannot stress this enough- DON'T SKIMP ON HEALTHY FOOD BECAUSE IT IS EXPENSIVE, THEN TURN AROUND AND BUY A BUNCH OF JUNK FOOD. Buy quality food, skip the junk food. It'll cost about the same and you'll be a lot healthier. If you must buy junk food buy it as a TREAT, not a staple.

Clothing: I get almost every single clothing item used, EXCEPT for shoes, socks and underwear. It's likely that I don't spend more than $100 on clothing in a year, and that's mostly bras. Clearance sales and gently used are my most common route.

Entertainmet: SKIMP SKIMP! I buy all of my videogames either used, or I wait until the price drops. I see movies in the off-peak dollar theaters, and I only go to big-ticket junk (Renaissance festival) if I have a coupon.

Coupons: Seriously, it's worth it. Also things like "Happenings Books" are hugely helpful. Packed full of "buy 1 get 1 free" deals, in everything from food to amusement park tickets.

As a rule I'll either buy gently used, or pay full price for something quality. The only times I'll buy something cheap and crappy is when there is a high risk of it being stolen or broken.

The MOST important thing: stop being OBSESSED with technology a fashion accessory! The money to be saved is astronomical!

Sort of the anti-Wal-Mart ethic: shopping for value over price.
Although, I'd place Acura on a somewhat pricey, but good value car. Hondas are great, but an Acura costs about the same as a stuffed SUV - tell me which is the better value.
Apple products are the same way: resale is higher, you get everything you need, and it simply works. Versus having to repurchase every year or so to run what's current.
The thing is, as the article says, it IS cheaper, especially if you shop for needs vs wants.

I just bought a Kyocera 5.5in. ceramic knife and its the best knife I have ever had the chance to cook with well worth the $60 price.

@wildwhuck: Careful. Even that quality stuff on sale can fall apart pretty easily. I speak from experience.

I guess the problem is that if you want to buy one high quality item, you have to have more money upfront, or use a credit card, whereas if you buy cheap items every year, you have the cash on hand to pay for it each year, and don't have to go into debt. However, you end up spending more in the long run, though the interest from credit cards and loans might make up the difference.

@Gann: I agree here as well. I've got a very good set of Henkles '2-man' knives that do everything as long as you hone and sharpen them occasionally. Those crappy 'ever sharp' knives are horrible. They just very clumsily saw through food and a dull knife is very dangerous because you use more force to cut, which increases the probability that a slip up will give you a nasty cut!

I've also gone for Al-Clad stainless steel pots n pans. They retain heat much better, so I find I can cook more quickly with them. Unfortunately this awesome feature is only possible because the the pans weigh A LOT. I try to go for the mid range only for non-stick stuff. Stainless steel is essentially a life-long investment so I don't mind going high end. But non-stick will eventually become very-stick as the coating wears down. The mid-high end stuff tends to wear down slower than the low end where flakes of Teflon are literally peeling off the pan :P

Shoes, Boots, Outerwear, Mattress, WORK Computer = Spend the money to get something good.

Clothing*, dishes, pots, pans, HOME Computer = Walmart, Target, and any 1/2 off sale you can find.

* Years ago, I heard a fashion consultant mention that French women tend to buy 1 high priced fashionable item, and build a wardrobe around that item buying less expensive (cheap) items to go with it. Made sense to me at the time and even more sense since I've practiced it.

The one thing I won't cheap out on is underwear. Sorry, but my under-comfort is worth the extra few bucks. Because, if your ass isn't happy, they rest of you is cranky.

@Eyebrows McGee: I have to admit, I don't know what a finished seam is (I was the only girl in wood shop instead of home ec at my school) so what is it that you are looking for?

Coats: I generally buy cheaper ones but to be honest I've only had 1 in the last 5 years...I also have one leather jacket purchased by my wife 3 years ago. I don't think I'll buy a new one in many years.

Shoes: Medium price for tennis shoes and low price for dress shoes. The reason I buy cheaper dress shoes is because I have to have more than 1 pair to match what I wear to work so it's harder to afford nicer pairs. Also, when I only spend 20 bucks on shoes it's nice to not feel bad when I replace them in 12-18 months. Also kinda nice to change styles every now and then.

Electronics: I always shop around for the lowest price for something that I need as long as it has the features I want I see no reason to spend more.

Bed/Mattress: Buy a nicer one, I have a cheap one right now and it sucks! I just can't afford anything nicer at the moment, but we will make sure to buy a nicer one when we finally get to replace ours.