Fiscal Responsibility

[hoyohio]

Originally Posted by Da Klugs

One contrarian point that has only to do with timing. If as part of "your plan" regarding prudent cigar purchasing you anticipate and budget a larger than normal portion of your budget in the "now to christmas" period, much $$ can be saved by significant sales.

Very true...but only if you are managing your collection to a finite space. If you simply add storage as your collection increases, then "sales" purchases become incremental -- rather than opportunities for "savings."

I committed to a space (albeit a big one) and that is how I keep spending under control. It is impossible for me to store additional cigars beyond my agreed upon storage space without compromising their condition. I also only buy cigars with debit -- never on credit.

[Da Klugs]

Originally Posted by hoyohio

Very true...but only if you are managing your collection to a finite space. If you simply add storage as your collection increases, then "sales" purchases become incremental -- rather than opportunities for "savings."

I committed to a space (albeit a big one) and that is how I keep spending under control. It is impossible for me to store additional cigars beyond my agreed upon storage space without compromising their condition. I also only buy cigars with debit -- never on credit.

Your willpower is an example to all!

Me? I'm gonna buy another cooler on Friday.

[hoyohio]

Originally Posted by Da Klugs

Your willpower is an example to all!

Me? I'm gonna buy another cooler on Friday.

I vowed never to go back to coolers. They drive me bonkers.

Willpower? Well, I don't think they make a bigger Aristocrat...lol.

[awsmith4]

Originally Posted by RGD.

I don't know that this could be true in all circumstances. I may wait until I get paid to buy certain cigars because cigar money does not come out of house money - it comes out of whats left over - play money if you will. Currently I spend $150 every two weeks, budgeted, on my staple cigars. So any cigar money outside of that is from what ever is leftover after bills, savings, etc are paid. That money though could be spent on books, tools, computer parts, truck parts, etc etc - just about anything that I don't really need -


Ron

I agree, I don't ever dip into my savings for my hobbies, I just use whats left over from payday. That is unless I set up an additional savings pot with the extra money specifically for that hobby.

[Da Klugs]

Originally Posted by hoyohio

I vowed never to go back to coolers. They drive me bonkers.

Willpower? Well, I don't think they make a bigger Aristocrat...lol.

Maybe coolers like short trips?

I did the same vow when I bought the cigar Club Wall thing. Vows work only until you are confronted with "that last thing" that wont cram into available space. For me it was Monte A's for sub $6 a stick. Vows be darned and coolers be bought.

[M1903A1]

Originally Posted by Da Klugs

Maybe coolers like short trips?
For me it was Monte A's for sub $6 a stick. Vows be darned and coolers be bought.

Yes...at a moment like that, everything goes out the window!!!

[hoyohio]

Originally Posted by Da Klugs

I did the same vow when I bought the cigar Club Wall thing. Vows work only until you are confronted with "that last thing" that wont cram into available space.

Crap...I'm about ten boxes away from being tested by the Universe...lol

[Da Klugs]

Originally Posted by hoyohio

Crap...I'm about ten boxes away from being tested by the Universe...lol

Not as infinite as the universe, but I'm pretty sure the cooler manufacturers have us covered in our times of need.

[neoflex]

Great post and oh so true. This philosophy should be used on all aspects of life and if everyone used this mentality the country and economy would be in a lot better shape right now. I have put myself in the credit card hole many times in the past and now we try to use cash for most things to avoid that mistake again. I have been working my ass off to get rid of a lot of dumb bills with side work and it has worked and I feel so much better knowing I can pay cash for things now and can put money into savings again. As far as my Cigar budget, it is almost Nil these days just with the economy being the way it is and the fact that there have been major layoffs at work and you never know if your up next. Went a little crazy this month with a handful of purchases but I did it as sort of a reward for myself for working so hard the last year but overall I have cut my purchases down a lot but than again I could probably honestly go a year without making a single purchase and still have plenty to smoke. Yet another reason why I have slowed myself down.
Just don't do this with cigar purchases. Use it in every purchase of your life. Hell, I hate seeing the people in my neighborhood who over bought and than can't afford to do basic landscaping or improvements to their homes because they are house poor. Again, if everyone learns to budget a little better and not over extend themselves than the country as a whole will improve financially. Unfortunately, most of us learn this the hard way. I know I did.

[Studebaker]

Just want to add my AMEN. And I was pleasantly surprised to see this thread take a brief detour to endorse Dave "Better Than I Deserve" Ramsey's teachings. I couldn't agree more with the OP and with Dave.

I could buy more cigars and more expensive cigars than I do, but I try to stick to a budget! What a concept! I've got some nice cigars in my modest humi, and I'm content with them ( well, most of the time). I'm proud to day I'm debt-free except for my mortgage, pay my credit card off every month, and do it all on a modest salary. If you want to have a sense of freedom, try living on less than you earn! As Dave says, part of being an adult is having the ability to delay pleasure in order to achieve a greater goal! It's absolutely worth it.

[alley00p]

I'd like to agree with everyone that this was a great post that should cause everyone to stop and think about their spending habits.

I realized that I was becoming a "slave" to the emails from various vendors, showing the 'unbelievable price" on this box or assortment of sticks. I fell prey to these for a short time, especially on sticks that I favored.

In my case, I have a 0% card that returns cash when used for purchases. I only use it for cigars and accessories and pay it off each month. But, after a spending spree this summer, I realized that I had dropped almost $800 on cigars in a 30 day period - almost all "sales" or or "once in a lifetime" deals! Fortunately, my card didn't hit me for finance charges because I couldn't afford to pay the card off that month.

Since that time, I've been much more careful in buying cigars. I realized that I could probably go without buying for months and never run out of sticks! Now, I pick up a stick or 2 at my local B&M, but I have been ignoring the sales pitches that arrive in my email box daily.

I hope that all my BOTLs and SOTLs will have a Happy Thanksgiving Holiday!

[Snake Hips]

Originally Posted by hoyohio

Very true...but only if you are managing your collection to a finite space. If you simply add storage as your collection increases, then "sales" purchases become incremental -- rather than opportunities for "savings."

I committed to a space (albeit a big one) and that is how I keep spending under control. It is impossible for me to store additional cigars beyond my agreed upon storage space without compromising their condition. I also only buy cigars with debit -- never on credit.

That's my plan. The Vino and the desktop are as far as I go. Once the Vino is filled, my spending will go way down. A few singles at the B&M and replacing stock as I smoke it. No more $500 sprees for the sake of filling space...

[Drazzil]

I have had to address this problem in my own life as of late. I wont mention on what but I most certainly overspent on cigars recently. I got suckered in by the "I wont see it again" mentality.

I have recently witnessed my financial aid (University grants) slashed by seventy percent, and I don't know how I am going to finish school (on last six months of business degree) and yet I spent two hundred and thirteen dollars on a bundle that I thought I really wanted. Granted they are good smokes, but they are NOT worth my financial peace of mind, which is why I am selling half of them.

I used to spend between one and two hundred dollars a month on going out to eat for lunch. Now I pack my lunch.

People are conditioned to be this way. And it's just a matter of conditioning ourselves to deny every little impulse that comes our way.

Its good to see this post revisited. Its an easy trap to fall into. I would venture to say the large majority of us have "over-extended" ourselves on cigar purchases at some time or another. Personally, I cannot be trusted with credit cards, so I do not carry them. My wife does the same. We follow Dave Ramsey's philosophy and have a reserve for emergencies. If we "HAD" to take a credit card out, it would be only for the worst of the worst emergencies that our reserves could not cover. A major sale at your favorite B&M or online cigar shop is NOT, I repeat NOT, an emergency. Also, it feels good to be able to receive a purchase or even just smoke a cigar, knowing that there is no looming credit card bill coming behind it in the mail.

[stitch]

Yep, verry good advise here ... Remember, in the long run it's just a cigar,
A rolled up tube of tobacco that you are at some point you are going to set on fire and smoke.
It isn't going to give you a life altering experience.
So don't go over board.

Every thing in Moderation ... Including Moderation

[hotreds]

Sticky!

[treatneggy]

I have to admit I'm guilty also. Stocked up on snus and snuff when PACT passed, thinking it would be my last chance to buy (FDA did stop importation of some flavors), then splurged on some HTF releases.

The wife decides since we are moving soon we need new furniture in the new house. Admittedly it is stuff we don't currently have - beds for both boys (we only have one twin), dining room table and bookcases (neither of which we currently have since we don't have room).

Then she gets slapped with an extra class at school that won't be covered by financial aid (plus $200+ extra in books)....

Now the cards are hurtin' and I'm trying to find time to sort out stuff we're not moving so I can try to sell it for some extra cash.

[brigey57]

Fiscal Responsibility

Excellent post and a point well taken.

[Mr B]

Originally Posted by Buena Fortuna

Absolutely! Cash is king, debt is death...

Originally Posted by rck70

Don't be Slave to the Lender........Cash is King....

Originally Posted by Tombstone

If anyone is interested in getting out of debt...I suggest Dave Ramsey's plan. I followed his suggestions and paid off about 17k of debt in 6 months. Debt is dumb, cash is king, and the paid off home mortgage has taken the place of the BMW, as the status symbol of choice!

Agree 100%. Ramsey's Total Money Makeover will change your life.

Awesome Post. I have thought it many times but never had the nerve to post it.
Thanks Mark.

[Da Klugs]

Hobbies are meant to enhace our lives in positive ways. When a hobby becomes our lives... that is an obsession and only "The Alba Obsession" is generally good for us.

General - Duh - Mr. Obvious comment -

Know what your disposable income is based upon being a responsible adult. No cheating and not putting money in the 401k to support a buying habit. Food is not optional. Housing is not optional. Utility payments are not optional. Buying cigars when you carry a credit card balance month to month (and you have cigars to smoke) is really the answer to the unspoken question we each should ask ourselves - " Do I have a Problem".

If you are married - assume your bride can spend the same amount on "her hobbie" as well. Tends to help put things in perspective.

It's all relative is a term that everyone needs to understand. Just because you see folks out of control and buying things left and right.. it does not justify your behavior nor does it necessarily represent to them what it might to you to spend so much on cigars.

Klugs general rule of thumb:

No Job No income - Dont buy cigars (at least not by the box)
Ongoing Credit card Debt - Buy only what you can smoke in a month
Feeling secure but college for kids is not funded - Less than 5%
Feeling secure but not loaded - Know your DI and spend <10%
Feeling secure, college fund looks good but still have Mortgage < 15%
Fully funded on all fronts, College, retirement, home, -