Originally Posted by Lioness
There is much value placed on having an abundance mindset, and thinking/acting "as if" you were already wealthy.
But some of the people who built the largest fortunes were also the most miserly and seemed to follow a scarcity mindset.
So is it wiser to cut expenses to the bone and watch every penny, or follow the advice of some other experts who say to focus on the big financial gains and don't worry about clipping coupons and skipping lattes?
There's a big difference between having a scarcity mindset and being smart with money.
Being smart with money means asking yourself, "Is this item going to be worth, TO ME, its price?"
Take Mounds' example of a plasma TV. If you actually like watching TV, it makes some sense to spend more on a good TV. If you don't like watching TV, then it makes no sense.
The trick is not to fall into the Joneses trap. You don't need to buy a certain kind of TV (or clothes, or watch, or house, or whatever) just because your friends or relatives mostly do.
The absolute price, in a sense, is not that relevant. I wouldn't spend $10,000 on a thing which I didn't consider as worth it. Then again I wouldn't spend $1 on a thing that I don't consider as worth it either.