My story (similar to many others) fits your model exactly – I am a consultant, work for myself and make plenty o’ money. 11 years ago in graduate school I made $18,000 a year at my full time, 40+ hour a week job not including the one evening per week I worked an extra shift in the ER – for free. I got paid 2 checks a month which was approx $600 each check. My bills were about $1000 a month before food and I made $1200 a month. I still managed to not take on any school debt that year, save a wee bit and eat out twice a week…once a week before my ER shift at a healthy place for different Asian cuisines, and once a week for ridiculously delicious burgers and beer with my friends at a great bar in Memphis called “The Poor and Hungry”.

I do the same things now except the wine is much higher quality and the restaurants do not use duct tape as a decoration (ok, some of them do – I still love these kinds of restaurants!). Friends were of similar mind then – Now, my husband and set of friends are similar. We all make money, we all save and we all choose where to blow money and have a blast together.

I love eating out and trying new restaurants and cuisines so much I even set culinary goals when I travel. That fact will never change. However, flexing the level of restaurant to fit the circumstance can change – that’s the easy part.

Very well done! Bravo! I can’t wait to read the book!

Ramit’s post is showing that, his friends are able to enjoy the fats and sweets (discretionary spending) along with their balanced expense diet of whole grains (work), fruits (investing), vegetables (financial responsibilities), dairy (charitable giving), and meat (school and career improvements).

I can’t lie–I am actually a bit of a socialist. It’s really not an insult to believe that we all have a responsibility to help serve our fellow man and that people are entitled by birth to free and adequate healthcare or food to eat. And the amount of money these two spend on their hobbies give me a bout of sticker shock (I am a social worker in St. Louis and at $10 an hour, it takes me about three months to earn the $5000 that his friend carrie bradshaw spends on shoes every year).

But the point he is trying to make is that extravagance is subjective, and that it is possible to spend what many consider to be a large sum and frivolous amount while still being financially responsible.

In my example, it’s musical instruments that I lovingly pursue. I do not play any musical instrument proficiently. But it has always been my passion and my dream to learn to play the violin. So a year ago I began renting and taking lessons. This year I will continue with my violin lessons, and also begin learning to play piano. I am in the process of purchasing my first decent piano, a Kimball console which costs $1200, from a music store.

Many people reading will have one of two reactions: “1200 for a piano! That’s ridiculous! I wouldn’t spend that on an instrument I couldn’t play! I wouldn’t even spend that on a car! I could get a better deal on craigslist!” or “1200 for a piano! That’s ridiculous! How can you expect a decent piano for 1200 dollars! It probably doesn’t even look nice!”

I find myself somewhere in between. As I said, $10 an hour doesn’t go very far–in fact, that bad-boy is on 6-month layaway. And I will admit it’s not a Steinway baby grand. But it’s extremely hard to play an instrument you do not have access to. And it is much much better than other models like a spinet.

Not knowing much about pianos, I am at a real disadvantage when it comes to purchasing one from craigslist or from any other independent owner. Buying a lemon could cost me thousands of dollars that I can’t afford just because I tried to do it quick and dirty. By buying from a music store, I get a warrantee, maintenance, delivery, and Free Music Lessons all included in the price.

For my income it is a relatively extravagant purchase, but because of the added value of buying on layaway from a respected dealer, I can justify and plan around the expense. Plus, it is not just a hobby or an experiment but an investment. As a newlywed planning for a family, I cannot help but see a piano as an exciting way to introduce my future children to the joy and excitement that music brings. And I can always upgrade to a more expensive, higher quality instrument in the future.

For those of us who are not quite as well off as those examples you give, lets try to think of this as motivation to increase our earning potential instead of another reason to sound off on someone else. Maybe the effort you spend flaming his examples could be better focused?

The post was insightful (and I found that I identified with having already allocated cash to places without thinking about it)…

Just thought I’d say hey, and kudos.