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The Point of Diminishing Returns

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AUTHOR: DAN SMITH on 10/31/2025

My absolute favorite things are the living and breathing things in my life; Chrissy, my kids, grandkids, friends, and even Sophie the wondercat. But this article is about the inanimate objects that make me happy, without breaking the bank.

Our house, at 1900 square feet, is neither tiny nor large. It is nice, easy to clean and big enough to host my favorite living things. We live on plat three. Plat four is under construction. Last week we took a drive to the new section. We thought we would check out the new model home. It was very nice. It was bigger than ours. It had many amenities that our house doesn’t. It cost nearly twice what we paid two years ago. We like our house. It’s enough.

I like music. I’ve written about my vinyl resting place; the room that houses my records, CDs, and of course, the equipment that brings them to life. I kept my 40 year old amplifier until it was too costly to repair. A new integrated amp from the same manufacturer sells for $7000. My new one, from a different manufacturer, cost a fraction of that, and it sounds great. I would get no additional enjoyment from the expensive stuff. I have had my speakers since they were built in 1977, in Hope Arkansas. No need for new speakers, these still sound great. 

Wrist watches are a status symbol for many. While lunching with an old friend the other day, I noticed a Rolex on his arm. I remember many years ago, he showed me a knock-off  Rolex, so I have no idea if this watch was real. Even if that one was the real deal, I’ll always suspect a forgery. I did not acknowledge it.

I like watches too, but not to impress, I have several. My favorite is a 1970s vintage automatic Omega that my dad received when he retired from Jeep. Dad never wore it, and it still has the original leather watch band. It brings to mind memories of Dad. I only wear it when I get dressed up, which is not very often. 

There was a saying made popular in World War II, “you don’t know shit from shinola”. Shinola was shoe polish made in Detroit around 1900. You can probably understand the adage without further explanation. Around 2011, a Texas billionaire got the idea to build something in a struggling American city. He decided on Detroit partly because it was struggling, and partly because the Shinola name made for a good story. In 2013 the first Shinola watch was produced in Detroit, by Detroiters, who were trained by Swiss watch makers, using some Swiss components. They are very well made. They sell for a tiny fraction of a Rolex. My city, Toledo, is practically a suburb of Detroit so it’s sort of personal for me. I own a couple Shinolas, not because of status, but because of the story, the proximity to my home town, and of course, because I like watches. 

I drive an Equinox. My friend drives a Lexus SUV. I have driven his Lexus. It is definitely a nicer car than my Chevy. Is it twice as nice, as the price would indicate? Not to me. 

I wear blue jeans. I can’t understand paying more for pants with pre-ripped knees; if that makes me old, so be it. I don’t buy Levis anymore, I discovered I can buy jeans from Costco or Kohls that fit well and look fine for a fraction of the price. 

I’m at a point in my life where I could reach deeper into the piggy bank to buy more expensive things, however, I don’t believe spending more would provide  additional satisfaction. 

Understanding the point of diminishing returns not only keeps our retirement secure, it also helped to get us here in the first place.

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Carl C Trovall
23 days ago

What is a normal goal to a young person becomes a neurotic hindrance in old age. -Carl Jung

George Counihan
26 days ago

Great post Dan. I’m right with you, especially with the watches. My son the engineer has some ungodly large and expensive watches. I of course sport a 25 dollar Timex. Occasionally I will mention his and ask “By the way what time have you got there”? He answers and I reply — “Funny, I have the same time”!!

Winston Smith
26 days ago

I don’t even bother with a watch anymore.

I’m retired so being somewhere ‘on-time’ to me is 10 minutes early. We try to leave the condo with “time to spare”.

If I want to know the time I look at my smartphone, which I always carry with me.

Olin
25 days ago
Reply to  Winston Smith

I have stopped wearing a watch, mainly due to having that dang phone with me. As a hobby, I restore/repair antique clocks and every week in my house I make the rounds to wind at least 10 clocks. Yesterday, due to the seasonal time change, I did the rounds twice: 1st) to stop the clocks for an hour; 2nd) to wind them and push the pendulum to get the ticking started.

R Quinn
26 days ago
Reply to  Winston Smith

If you had an IWatch, your iPhone would talk to it and you would have a choice of looking at your wrist or reaching in your pocket. 😎

Michael1
26 days ago

This reminds me of my grandfather asking me years ago how much I had paid for a watch I had just purchased in his little town when mine died. I forget the amount, but it was a digital Timex knockoff (not even a real Timex), so it was small. But I remember what his watch cost, because when I told him my number, he said “___ dollars?!?! Well, you wasted money. I got this watch for six dollars!”

He would spend money on some things, and he could, but he could for a reason. This kind of thing was one reason.

John Enright
27 days ago

Fantastic post Dan! I’m a fellow vinyl lover that still listens to them on my 1980’s vintage Klipsch speakers as well. It is so nice to be content with knowing what “enough” is.

Brian
26 days ago
Reply to  DAN SMITH

Dan, I am guessing the new integrated amp for $7,000 would be from McIntosh.

Edmund Marsh
27 days ago

Great observations, Dan. I think buying things with enough quality to serve our needs is wise, but beyond that is often sad. We’re just succumbing to our need to impress or falling for the ploy of the seller. Either way, we’re letting someone else get inside our head to control a piece of our lives–and our money.

Jeff Bond
28 days ago

Dan – great post. I’ve thought about this a great deal, and we’re mostly on the same page.

I was dealing with a cantankerous laptop. It was old and decrepit enough that it would not accept a Win11 upgrade. I waited for a sale (HP Labor Day sale), and finally found one that should have enough power, protection, and storage for a long time. After decades of using computers for high-end technical computing, all I do now is read email, websites, create the occasional spreadsheet, Quicken, and TurboTax,

The other thing is like David Lancaster posted below, and I’ve noted before. I finally bought a new car. My old 2011 Subaru ran fine and there were no impending problems, but I wanted the newest, most up-to-date safety features. So now I have a 2025 Subaru. This time I bought a hybrid, and I’m mostly happy with the fuel economy. I’m not piling up the miles. I bought it over five months ago and it required a couple of trips to bring the mileage up to 4,400 miles.

stelea99
27 days ago
Reply to  Jeff Bond

At 56000 miles, my 2009 Forester goes through about 8 gallons a month. I don’t like the new direct injection engines; short trips would lead to oil dilution in a new one. AND, certainly, the insurance for it is much cheaper than a new one.

Jeff Bond
27 days ago
Reply to  stelea99

Stelea99 – You obviously don’t drive a lot. 🙂 My 2011 Forester had around 114,000 miles on the odometer. It was reliable and economical. It had started to burn a bit of oil, so I checked the oil level at least once a month and before every trip.

They’ve heard me talk about them enough that both of my sons are Subaru owners.

David Lancaster
27 days ago
Reply to  stelea99

certainly, the insurance for it is much cheaper than a new one.”

Suprisingly that may not be the case. Last November we traded in our 2013 Forrester because we were having electrical issues and it was no longer reliable. It was worth about 5K. We bought a 2025 Toyota Crown Signia for just over 50k and received a rebate of between one and two hundred dollars due to the numerous safety features.

Jeff Bond
27 days ago

David – I concur. My auto insurance went up a marginal amount when I bought the new car.

DrLefty
27 days ago
Reply to  DAN SMITH

I have a sub-compact SUV. I had to be talked into it because I’m used to driving smaller cars, but I’ve learned to love it. It’s comfortable and safe, and because of the “sub-compact” part, it’s surprisingly easy to park even in tight spaces. Now we have my husband’s convertible for the “fun” car and my SUV for the “practical” car (for longer trips and packing more stuff).

Randy Dobkin
27 days ago
Reply to  Jeff Bond

Did you get a Forester like we did?

Jeff Bond
27 days ago
Reply to  Randy Dobkin

Randy – yes, a 2025 Subaru Forester Limited Hybrid. The only way to get the safety features I wanted was to go with the Limited options package.

Randy Dobkin
27 days ago
Reply to  Jeff Bond

Nice, we went with the Touring Hybrid. With the adaptive cruise control, I barely have to do more than steer!

Jeff Bond
27 days ago
Reply to  Randy Dobkin

Randy – Adaptive Cruise Control will kinda-sorta steer for you if you let it. I don’t trust it enough to take my hands off the wheel.

Randy Dobkin
27 days ago
Reply to  Jeff Bond

Me neither. I don’t like the feeling of wrestling with the steering wheel.

Nick Politakis
27 days ago
Reply to  Jeff Bond

Which HP laptop did you buy?

Jeff Bond
27 days ago
Reply to  Nick Politakis

HP OmniBook 7 Laptop
17-inch touchscreen
Intel Ulta 7 CPU
32 GB RAM
WIndow 11 Pro
1 TB drive

The Labor Day sale was $500 off with free shipping. It was custom built in Viet Nam and then shipped directly to me.

R Quinn
28 days ago

I can relate to much of what you say Dan, although car-wise I have fallen off the wagon, but for good reason, at least to me. In my mind, my car is worth every penny even though in the end it just gets me from A to B.

Yesterday while driving there was a Bentley SUV in front of us. Both Connie and I were amazed anyone would spend money on that vehicle. The least expensive of their SUVs start at about $237,000. There can’t be any reason for spending that other than showing off status.

I still don’t get the Jean thing and delight in kidding my granddaughters about their’s.

I have several old watches which don’t work and one Movado which drives me nuts because there are no numbers or marks to tell the time. I wear an Apple Watch 99% of the time.

I secretly yearn to buy a Rolex, but it will never happen. I’m too cheap and I know it would only be to show off while there are many better uses for my or anyone’s money.

I often wonder how much money a person must have to buy 1/4 million dollar cars and hundred thousand dollar watches. I also wonder if they have fully funded their 401k🤑

R Quinn
26 days ago
Reply to  DAN SMITH

That is true. I could, but never would spend twice what I did, especially when I know one of our sons can’t afford to replace his minivan with over 200,000 miles on it.

David Lancaster
28 days ago
Reply to  R Quinn

Last fall we bought what might possibly be our last car and went with a high end Toyota that cost $50K, as much as our first house. I thought we were being extravagant, but recently read that is the average cost for a new vehicle.

Also for years I always thought someday I’d buy Dom Perignon to celebrate a special occasion in my or one of my family members’ lives. Has never happened, and now I’m over it.

Last edited 27 days ago by David Lancaster
Michael1
28 days ago

Thanks Dan. Some things really do matter, and the living and breathing ones are at the top of the list. Most other things – both material things, and financial ones (e.g., minimizing IRMAA) – we can decide how important (or not) to make them, and fewer is probably better.

Mark Crothers
28 days ago

Dan, great article. You just about sum up my whole life philosophy: nothing fancy required. I’m also stealing your “living and breathing” observation and will at some point be dropping it into a conversation. Of course, I will qualify by mentioning that a pretty smart guy once told me this.

Last edited 28 days ago by Mark Crothers
R Quinn
26 days ago
Reply to  DAN SMITH

Here is a part Irishman who always felt the quest was not having showy, expensive things but the ability to have them.

Gary Klotz
28 days ago

Excellent post, Mr. Smith.

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