So you've never bought a hooker before?

Ok, so I don’t actually know the going rate for a hooker.  But I knew that you, my dear reader, would be keenly interested.  I may have implied my blog would answer your burning questions about the cost of hookers, then failed to deliver.  That is what we call marketing.

In all honesty, making financial decisions about something new (to us) can be stressful.  How much should you spend?  What is the 'right' amount, and who has that info?  Is it worth it to spend more, how worth it is it?  Sometimes it's a matter of "I see it, I want it", all emotions and no logic.  Buut whenever you go to buy something big, it can be worth a pause.

So this literally happened a few months ago, as my future husband and I were talking about buying an engagement ring.  And of course first we're all - 'what do engagement rings cost?  How much should we spend?'  And my first thought is, well, I don't like big jewelry or being mugged, but I do love shiny things, and maybe something in the range of 1K to 5K is good?'  I paid $1700/month for my studio in DC, and while jewelry is mostly silly to me, it seems reasonable to spend a few months' rent on something I'd wear for a long time, most likely.  Then my next thought: wait a minute ... that's practically the maximum yearly contribution for an IRA (!!), so that's a lot of money.  And then I thought, I'd appreciate a few thousand spent on an amazing trip more than on a ring.  And we went from there, and my ring is perfect (for me).

Studies show that people who move to a new city from a higher cost of living area tend to spend more on housing than those who moved from somewhere cheaper.  Thank you, anchoring.  While the price of apartments in Chicago or Boston doesn't really tell you what the price of apartments is in Pittsburgh or LA, it's a better indicator than the price of pizza or the ballet or something else that isn't housing.  You know what you spent before, and it seemed reasonable, so why not try for something similar?  That may not be possible (see: moving from dirt-cheap Pittsburgh to oh-so-pricey DC), and a foray to Craigslist will quickly change your perspective.

An even better (& simultaneously worse) barometer than craigslist?  Your friends and colleagues.  How much is their rent?  What are the fees on their investment accounts?  You can learn a lot by asking, but of course, they might be collectively making dumb decisions (like paying $100+/month for a cell phone in a 2-year contract).  They probably care about different things (and so choose to spend their money differently than you).  And your crowd might be too homogeneous -- if they collectively give you the same answer, you may want to question conventional wisdom.  It's good for you.

What do you think about when making a new-to-you purchase or decision?  Have you ever spent a vastly different amount (more/less) on something big than those around you?  Do you know the going rate for hookers?