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This will be difficult to make come across as intended, but here goes.
What is the point of being financially secure, of having adequate assets and income and not having a comparable standard of living?
No, it doesn’t mean buying a Vacheron Constantin watch for $195,000, but it also doesn’t mean driving a ten year old junker.
We can claim to enjoy living modestly, “comfortably”, but is it true? Wouldn’t we rather live a bit, just a little bit, above average? To splurge on occasion? It still doesn’t have to be flashy.
To be honest, my life-long goal was not to be average, but neither was it to be wealthy.
Mark talks about simplicity and not being fancy. That’s fine. If that’s what it takes to achieve financial freedom – as it did for us as well, so be it.
However, once achieved, I see no reason to keep playing the game if you miss out on little extras that make you and perhaps others happy.
I drive a Mercedes because it was a dream since I was 18, a dream that took to age 70 to achieve. It’s called a luxury car, but in reality cost no more than many of the SUVs and pickup trucks on the road. The difference may be that I actually bought the car.
Does that car make me fancy, not really. It’s all relative. There are 24 parking spaces in our building garage. Only two spaces have cars that are not a BMW, Mercedes, Jaguar or Porsche, nearly all are leased – the average age of residents is around 75. Looking at any of us would not create an impression of being fancy or wealthy. They all complain about a $50 monthly increase in the HOA fee. Nobody dresses to impress.
I don’t need to buy anything, I don’t need to impress anyone. Hey, I have shoes that are 30 years old. I have ties so old they have gone in and out of style. I never bought designer clothes in my life. I don’t want jeans someone already put rips in the knees. I did spend $350 on a hand made Irish sweater bought in Donegal a few years ago. I didn’t need it, but I wanted it, so I bought it.
Don’t waste, don’t flaunt, don’t deny, enjoy.
Wearing Casio watches, driving Toyota work trucks and sedans for many decades have proven not only benefical for our peace of mind, but our paid in full retirement in Hawaii. Where by the way, Japanese autos far out number Eupropean versions.
Dick, I know you won’t relate to the specifics, but you’ll relate to the principle. Hubby and I are going out of town the next two weekends:
Both of these are modest wish list items for my husband. He adores the Beatles and especially Paul and has never seen any of them in concert. He’s always wanted to do the South Bend junket, but I’ve never been willing to make that long of a trip in the middle of fall quarter—and now I’m retired, so off we go.
They are both events that may be “now or never”—Sir Paul for obvious reasons; USC/Notre Dame because there are rumors that this 100-year-old rivalry game may soon be discontinued (😢).
As you might imagine, I’m leveraging various perks from credit cards and travel to offset the costs of the two trips. It looks like we’re going to be OK with the weather on both trips…but the government shutdown snarling travel is a concern.
Anyway—we’re making ourselves happy!
I’m so jealous about #1! Seriously, I hope everything goes smoothly and that you have the time of your life! Still on my wish list, but this tour won’t be anywhere close to me. (But I have a wish list item coming soon – will share later) 😉
Go for it. That’s what retirement and a little extra cash are all about. And no doubt you are still living within your means so you’re safe from the frugal police.
Dick, you have put into words some of the things I have been thinking about lately. I can afford more things now than at any other point in my life. Yet, I don’t feel the need to spend for the sake of spending, and I have no desire to keep up with anyone.
I also identify and agree with bbb’s post regarding not spending down our nestegg. We have and do as we like, while spending only a fraction of our IRA distributions.
Knowing that I can buy what I want makes me feel safe and sound, while also allowing me to spend a few unexpected bucks without anxiety or remorse. My most recent such purchase was booking four nights in downtown Philly in order to pay respects to Jonathan, explore the city’s historical sites, and to meet some of my make-believe/virtual/HumbleDollar friends.
I think the point here is – given identical circumstances applied to everyone – we all make different choices. Our life experiences, genetics, finances, social system/support, mentality and so much more go into the choices we make.
Considering the relative age and financial standing of most HD readers, I’d say we all should do what you do, and enjoy it while you can. The less time we spend evaluating the decisions of others, the better off we all will be.
I appreciate your perspective, and you make some good points. I think we just have a different view of what’s truly meaningful once you’ve achieved financial comfort.
My default setting is still very much ‘nothing fancy,’ but that doesn’t mean I refuse to spend. It means I have a high tipping point for a purchase. If the money significantly improves my quality of life, an experience, or a long-term goal, the cost is immediately justified.
For instance, this summer I spent a substantial amount on an e-bike. I definitely didn’t need one, but it greatly improved my time at our vacation home. Speaking of this summer, the vacation house itself is obviously a splurge, but the value of having family and friends stay and use the property is worth the cost to me.
I also don’t eat out much, but that’s not a cost-cutting measure—I’m simply a very good cook who enjoys creating food that’s better than restaurant quality. And on Monday morning, I booked flights and a nice hotel for a trip next August to see a total solar eclipse. I didn’t think twice about the cost; it’s a major bucket list item.
I’m not trying to be frugal for its own sake. I’m just being highly selective. I buy freedom and experience instead of possessions. But once that tipping point is crossed, I’ve no issue spending…I agree it’s pointless having wealth if you don’t
use it.
It’s fine for people to spend their money on things they value. If that’s a particular car or a spendy holiday or clothes or jewelry then it’s no big deal.
But if it doesn’t add incremental happiness then no-one should feel the need to spend just because they can afford it. It’s one of the things I often hear from financial planners that encouraging clients to spend because there aren’t pockets in a shroud is one of the hardest things to gain traction with. That makes sense to me, if there is no well-being reward then really it might make some people happier to retain the funds rather than have the anxiety of buyer’s remorse.
I’m totally ok with my 10 year old car. It does exactly what I need. And while I wouldn’t weep too much if it was an economic write-off tomorrow I intend to keep it running for as long as I am able not least because there might be e.g. further improvements or better trickledown in EV battery technology by the time I need to buy.
I agree, nobody should feel the need to spend, especially to keep up with the Jones’s or to show off for any reason. I would still have my 2014 Mercedes if it hadn’t needed $8,000 in repairs.
Keeping up with the Joneses is probably not something the average HD reader engages in.
Of course, if it hadn’t been a Mercedes, the repairs would probably have been much cheaper! Just saying.
That’s certainly true. Plus I use a dealer which is also higher. It’s all relative.