I like this article about the psychology of spending. It's not earth-shattering stuff--it basically says that people have different things that they're willing to pay a premium for. They use the example of a husband & wife. He'll pay a lot for golf and the related equipment; she golfs but doesn't care about her clubs. On the other hand, she loves to cook and wants great kitchen equipment; if it were up to him, he'd own one pot, one pan and be done with it. The way to save yourself some money is to consciously think about what matters to you and what doesn't, and spend more on what matters and cheap out on the stuff that doesn't.

So, my question is: what matters to you? Where do you prefer to spend more, and where do you prefer to spend less?

I touched on this issue a bit in a prior post, when I made clear my willingness to pay a bit more to always have fresh buns. But here are some of my other worth it/not worth it purchases:

Worth It

My Home - I will spend for furniture, bathrooms, kitchens, etc. to make my home more comfortable & have it look good. I like looking at my home with a sense of pride and I like to entertain, so I want it to feel like a beautiful, warm place.

My Kids Education - I'm spending some money to send my kids to a private school because I'm not pleased with my local school system. It's expensive and not an easy expense, but it's worth it to me for a number of reasons that I won't go into here.

Music -- I love music and have spent thousands of dollars on records, then tapes, then CDs, then iTunes. Of course that means I've spent plenty on record players, tape players, CD players and iPods. (A lot on concerts, too.) Perhaps counterintuitively, I don't care as much about the players as about the music itself. I don't care a lot about the nuances of stereo systems and speakers, for example.

Beer - I like to buy good beer and am willing to pay more. Locally we have microbrews from Great Lakes Brewing Company that are very, very good. Worth the extra cash for me.

There are others, but those are a few biggies.

Not Worth It

Cars - I've never cared about cars other than from a functional standpoint. Without a label, I would be hard-pressed to tell you the make or model of any car just by sight. Maybe a Corvette, but that's about it.

Wine - I've had people try to show me the big differences between very expensive wines and $10 bottles, but I've never really noticed anything. I can tell the difference between a $10 bottle and wine in a jug, but otherwise I'm going for price over slight improvements that cost an extra ten, twenty, hundred bucks.

Haircuts, Shampoo - I don't have a lot of hair, so maybe I'd feel differently if I did, but my wife's spending on hair has got to be 50 times mine. I go to an old-time barber for $14 and use Suave. Of course it's possible I could look better if I spent a little more here, but I tend to think you either have the raw materials or you don't--what's that phrase about putting lipstick on a pig? That might apply to me.

So, how 'bout you? What's worth the money to you? What's not?