A RECENT ARTICLE on this site, written by the editor, put me in a contemplative mood: How do I think about money?
Actually, I was already pondering this question, something I do frequently and especially at the end of the month, when my pension is deposited into one of our bank accounts and earnings on our investments are displayed in our Fidelity Investments accounts. I also ponder this question when I see our stocks and funds go up or down each day. My mood is affected, and my feeling of success changes for better or worse.
To find out more, I tried one of the personality tests that Jonathan referenced in his article. Sure enough, I scored high on “conscientiousness”—such individuals are organized and disciplined—which is what Jonathan predicted for HumbleDollar readers. In fact, I scored so high I probably ought to schedule a counseling session, but I’m not willing to spend the money.
Also as predicted, among the four money scripts, I turned out to be “money vigilant” with a touch of “money status.” But in my defense, my tendency toward money status is not about flaunting wealth or keeping up with the Joneses, but rather about measuring myself against myself and the internal secret goals I’ve set since I was age 18. I’m out to prove something—maybe that I could do better than my parents and grandparents or those kids who were off to Princeton or Harvard after high school.
Perhaps I do need that counseling session.
For the first time in many years, just before my pension arrived, our checking account last month was down to zero after paying off two credit cards. It had been another bad month for car repairs. As I saw what was happening, I panicked because it also meant we weren’t starting July with the balances we usually have.
I mentioned this to my wife, who simply said, “Move some money from the savings account if you have to.” Yeah, that’s the answer. But in my mind we’re going backwards, our savings account balance will be lower and that’s not supposed to happen, because it meant failure was on the horizon.
Part of this feeling comes from my insistence on bucketing our cash. We have bank accounts to pay bills, for travel and for savings, and never does one supplement the other—but maybe it’ll happen this month.
Of course, this is all nonsense. We aren’t going backwards and we won’t run out of money. But as the money vigilant trait holds, “These individuals tend to be very aware of where they stand financially and are overly concerned about their financial well-being.”
According to my wife, that’s me, overly concerned. I guess I am, but at my age nothing will change. I like to think overly concerned is better than a pile of credit cards you can’t pay at the end of the month.
You and I are a lot alike; we even share the same first name.
I know it is hard to break life long habits. In particular habits that proved to be successful. Money however is fungible. The buckets that you constructed only exist in your mind. Perhaps it is time to let them go.
Second: German engineering – pshaw. You’ve met your goal of owning a Benz so now you can get something hassle free.
I don’t think that you should have anything more to prove to yourself. You won.
Listen to your wife. It’s helped me.
Many things said remind me of Archie Bunker.
A wise man understands and moves on. A fool understands and doesn’t.
I’m not sure, but it sounds like you are siding with my wife😎
I’m pretty frugal, but I was confounded by the idea of checking “stocks and funds” every day. I check income vs outgo on Quicken a couple of times a month, but I only look at my Vanguard account occasionally. If you are not going to take action (and surely you are better off not acting on daily fluctuations), why look?
I do sympathize with the car costs. So far this month my 2007 Camry Hybrid has had its AC fixed, the passenger side window replaced and a tire sensor replaced (third time it’s been the sensor and not a bad tire). The window was broken by foolishly optimistic thieves and will mostly be covered by insurance, but the AC was expensive and not optional in NC.
Absolutely no rational reason to check investments everyday – or during the day. It’s a habit and I’m obsessed with see growth. It’s a game I think.
I don’t understand the Quicken thing though. Don’t you have to make entries?
I have all my investment and bank accounts linked so if i want to know spending i either look at the bank or Fidelity and every transaction is there.
I take the “best” from Dick & Kathy–using Quicken to check my portfolio throughout the day 🙂
I have my accounts linked to Quicken. I have to tell it to download transactions, and I have to categorize those that don’t happen automatically. (E.g. Utilities: electric, Dining, Groceries etc.) But then I can see exactly where the money has gone. Those records, going back to 1999, informed my recent article on early retirement, and were also extremely useful when I visited a fee-for-service planner a couple of years back for a sanity check. Also, all the data is in one place.
Mr. Quinn, the “ bad month for car repairs “, really caught my eye. I remember your wife owns a Jaguar, and you recently wrote that it needed 10 k worth of electrical work, etc. I am not a “ car guy”, so, my wife and I own two Toyota products, a 2007 Lexus GS 350 AWD and a 2014 ES 350. Although they were expensive , we bought them new, they are both extremely reliable, not bad fuel economy. The older one has well over 200 k and only a water pump, other than maintenance. The newer one, 70 k miles, no problems. Jaguar, Land Rover are notorious for expensive , intensive repairs.( and the four German brands) Anyway,I have made more money mistakes in my lifetime than I like to think about, like buying individual stocks, and much worse. But, since, decades prior, I gave up buying anything but Toyota, at least one part of my finances is performing well, the automotive part.The rest, I will save for another day. Too painful right now!
My wife has a 1998 SC 400 with well over 200 k miles and still runs great. It doesn’t or hasn’t required much in repairs over the years, but as the car gets older, when it does need a repair OEM parts are sometimes hard to find these days. But I agree, Lexus is a very reliable car.
Got rid of that Jaguar. This time expenses were my car. In addition to what i paid for service and repairs, Mercedes covered about $6,000 replacing the rear sub frame on a recall.
It’s a bit hard for me to empathize with the concern of someone who, IIRC, isn’t touching the principal in his portfolio.
No empathy sought or expected. It’s about personality (flaw), that’s all. And yes, a pension and Social Security are great things to have.
In a world where everybody was fully rational about money, your lack of empathy might be understandable. But after six decades scouring the planet, I still haven’t come across that fully rational human.
Dick..At this point in summer you should be able to snag a half price deal deal for the $110. Beach chair. With the money you’ll save on the chair you can get a snazzy new beach umbrella and maybe a few beach towels with 😊 smiley faces pattern you’re fond of.
This is your opportunity to maintain your frugality while splurging a little and making your wife happy.
Life is good.
No deals so far 👀 👀
Pay full price. Life is too short!
Age has little to do with the ability to change. Your willingness to experience new things, feel slightly uncomfortable, and letting go of old anchors is the path to change for me. I recently left a life of 68 years in one location and moved several states away to an area that has always appealed to me.
I met a great woman online after losing my first wife to cancer, It was scary
to meet someone online and it did make me uncomfortable, but the rewards were well worth it. Don’t think you can’t change, just start working on what needs changing.
Maybe, maybe not. But there comes a time when great change is not desired IMO.
A nice piece of self examination. I also probably spend too much time pondering money related topics. Your article is a good reminder for me to redouble my efforts and try to put more balance in life. As the old cliche goes, I doubt that on my death bed I’ll lament I didn’t spend more time working on finances. That said, I also agree with your point that if I had to error, I’m more comfortable erroring on the side of over attention rather than the lack thereof. As I said, your piece was a good reminder; thanks!
Thank you for your comment. I’m going to be 80 in four months and I’m trying to change my ways dealing with and thinking about money, but it’s not easy. I grew up with parents and grandparents who didn’t want to spend a penny that was not necessary.
My wife wants a new beach chair. We have been shopping for weeks off and on pondering the difference between some at $70 or so and others at $110. Do we need the $110 one? Is it that much better? If we dawdle much longer it will be a Labor Day and the beach will be closed.
Oh well, it’s nearly the end of the month and my accounts will soon be credited with this months interest so maybe I’ll feel better about spending.
I hope you are shopping for beach chairs at Dollar General.
Dick…see my reply to your comment above.