The Per-Use Theory

Posted on December 16, 2004 No Comments

Budgeting is generally a matter of prioritizing purchases. Once I’ve set aside savings and paid monthly bills, I must decide how to spend disposable income. Most items are built into my personal monthly budget, such as groceries and my gym membership. However, each month, certain items become a painful exercise in prioritization – particularly clothes, shoes and accessories.

To be sure, these items are wants rather than needs. Lately, I’ve tried to reign in my spending considerably in the fashion category. For a while after college, I needed to build an entire business-casual wardrobe. This meant lots of closet purging – several pairs of pajama pants, fleece vests in every color, hoodies, about six pairs of ripped jeans, tattered baseball caps – gone! In their place, tailored black pants, turtleneck sweaters in every color and “stylish, yet supportive” black shoes. (OK, they’re not that stylish.)

But past the needs of a work wordrobe, I got accustomed to buying accessories (why, oh why are blue purses so cute!) and new clothes – and to spending a lot in the store.

To help me deal with the problem of spending more than I own, I started applying the so-called “per-use theory.” I definitely didn’t invent it, but I’m stellar at applying the rule! The concept is basically this: you can spend more on items you use more often, and determine your price point for low-use items, such as “going out shirts” that you’ll only wear once.

The per-use theory comes in especially handy when limiting spending in a particular budgeting category in for the month. I used the rule a couple times recently:

• While shopping for new running shoes, I bought a pair costing $20 more than I originally intended to pay. I knew I’d have the shoes at least six months, and wear them just about every day, meaning the cost per use was low. I bought the shoes. Later in the month, I passed on a pair of killer red kicks, realizing I could only wear them with certain outfits (higher per-use cost). At the moment, I needed the quality running shoes more. Easy!
• Per-use is not limited to clothing! I always apply the per-use theory to my hairstyle. While my stylist is expensive, she’s talented and her work always makes me feel great about myself (shallow? yes.). I only see her four times during the year, but each time I wince at the price. People see your hair every day…$1.75 per day for me to look good? Low per-use. I tend to pass on the manicure, which might cost about $3.15 per day if it lasts one week.

A more intelligent, less materialistic person might view the per-use theory as a way to rationalize consumer spending. But wait! The per-use theory can be applied to more than just shopping. It also provides motivation. If I work out just five times per month, I’ve met the cost of my gym membership for non-members. Any workouts after that and I’m counting dollars saved! In this instance, the per-use theory keeps me strong, healthy and motivates me to work out. That’s applied science!

On the surface, the per-use theory may seem like fluff. But any technique that helps this Budgeting Babe curb excessive spending and stop to think a bit before buying (rather than regretting it later) is on the right track.

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