I admit it, I love shopping. Clothes, shoes, cars, Apple products, the list goes one.  And oh yeah, I love memorable experiences, too.  You know, visiting family, trying out that new restaurant, watching a movie, hitting up Vegas, hell, take me to Europe if possible.  And of course VIP service.  After all, who wouldn’t?  And just who’s to blame for liking fun products, hip dining, and stellar service?  Not me, I say, not me.  Not that I always get what I want (if only).

But we all know we’re living in a new age of frugality.  We even have a positive savings rate (5% in January, believe you me).  It’s Prius over Beamer, H&M over Gucci, Walmart and Micky D’s over Bloomies and Mr. Chow’s.  Always laying out the cash (or plastic) in this newfound age of financial reason may not be the most “in” thing to do.  It may even cause more anxiety and guilt than pleasure and relief.  What a let down, who’da thought this would happen to us, this prosperous plastic economy of our’s we thought invincible.  The bird’s out of the cage — our individual and collective financial foundation has proven to be weaker than once thought.

So when is spending the money really worth it?  And not just spending money on yourself, but on others and on your business?  Well, business owners (good ones) know that money is a tool (leverage) and that leverage can provide power.  When appropriate capital and sound strategy combine, money can be multiplied.  Entrepreneurs also know that sometimes you have to spend money to make money.  Quality, in-demand people come at a premium.  After all, nothing attracts success like success.  And even when it comes to your personal wardrobe or garage, sometimes labels and brands represent simple mark-up branding strategy and sometimes they represent so much more.  When, then, does it pay to spend?

Is spending the extra $20 on that bottle of wine really worth it?  Is your Lexus LS really a far superior choice than the Hyundai Genesis?  Should you use the big name CPA or the little guy?   The big-boy lawyer or the recently minted one down the street? Will paying $250 an hour for consulting that will save or make you thousands better than paying $100 an hour for average results?  Valid questions, varied and individual answers.

I’ll be answering this question (when it pays to spend) over the next several blog posts:

1. When it Pays to Spend (on Yourself)
2. When it Pays to Spend (on Others)
3. When it Pays to Spend (on Your Business)

So stay tuned and prepare to be enlighted.  Your feedback (comments, complaints, compliments) is always welcome – the more voices, the more fruitful this discussion will be.

- @epsilonc