Would You Rather...

We've all heard of "Would You Rather"--the game where you're asked to choose between two completely ridiculous, unpleasant, or fantastic options. Now you can play to determine how frugal-minded you are. Would you rather be debt-free and scrimping or livin' large but paying the price? Answer these six questions to see where you fall. 

1. Would you rather have a paid-off 2002 slightly beat-up Honda Civic that runs great, or a 2008 Infiniti EX with leather interior that costs $400/month?
 

2. Would you rather have a 1200-square foot home that's a little outdated but completely paid off, or a large, new house that takes a full day to clean and has electric bills through the roof, plus a pricey monthly mortgage bill? 
 

3. Would you rather have a custom closet full of Manolo Blahniks and Marc Jacobs (paired beautifully with a sizeable monthly credit card bill), or a wardrobe full of sensibly-priced staples that you can wear year after year?
 

4. Would you rather keep your 32-inch television that you've had since college, or purchase a flat-screen 60" LCD complete with a new Best Buy bill you'll be paying for the next 24 months?
 

5. Would you rather go ahead and remodel your outdated kitchen (remembering that any home improvement job always costs 50% more than you plan for), or keep your Formica countertops and put your extra cash towards your retirement fund?
 

6. Would you rather charge that European vacation with your friends (hitting up Madrid, Paris, and London!) or stay at home and work during the summer to get a jumpstart on your student loans?

True, life's expenses aren't always this black and white. Some of us may even be lucky enough to have the closet full of Manolos and a huge retirement account. The key is to find the right balance between splurging and living frugally. Just because you decide to remodel your kitchen instead of increase your savings doesn't make you financially irresponsible. Just have strong financial goals and a plan to reach them in place whenever you make your spending decisions. Make sure you can really afford the purchases you make, and trade down your car or other belongings if they're keeping you from funding your long-term financial goals. You'll soon see that the satisfaction of living within your means beats the thrill of new purchases that are too big for your wallet.