Investing in experiences...smart?

[jjquantz]

I'm not into travel that much. For me, the best ever return on investment was spending $1000 on a guitar, amp, and music lessons when I was 18. 35 years later that original expenditure continues to pay off daily. I've had a lifetime of musical enjoyment and made several new friends due to musical connections, and it all began with that initial investment.

+1 We celebrate 35 years of harpsichord and 30 years of baroque flute ownership this year and I get 15-20 hours of enjoyment out of the instruments every week. This has also led to many musical friendships and performance experiences.

 

[hnzw_rui]

Honestly, I've spent money I probably shouldn't have on travel and I don't regret it one bit. It's not so much the "place/location" that was memorable but being able to spend time with friends and family (particularly a grandmother who passed away a couple of weeks after our visit) that's truly priceless.

 

[Senator]

This is very similar to the kids/no kids debate. If you skimp and save, I think you can retire very early, maybe even by 40. Live on $30K a year, save $50K for 20 years, and you are nearly there.

The other option leads to a 'standard' retirement of 65, or layoff at 55. Save $10K, spend $70K. When you retire, it is likely with a lower standard of living. Maybe losing the house or living in a apartment you did not want to move to.

If you die at 70, and you had to work until 65+, you will wish you would have skimped and retired earlier... Doing stuff in your 40s as a ER adventure, not at 65.

 

[hnzw_rui]

This is very similar to the kids/no kids debate. If you skimp and save, I think you can retire very early, maybe even by 40. Live on $30K a year, save $50K for 20 years, and you are nearly there.

The other option leads to a 'standard' retirement of 65, or layoff at 55. Save $10K, spend $70K. When you retire, it is likely with a lower standard of living. Maybe losing the house or living in a apartment you did not want to move to.

You don't have to go to extremes. There is middle ground. A spend/save of $60K/$20K or $50K/$30K will likely get you to FI earlier than 65 while maintaining the same standard of living throughout.

 

[Nemo2]

... or pulling your motorhome into a vast truck stop on the Ohio turnpike and selecting a spot far from the existing semi-trailers to go to sleep, only to wake up at 1AM when two gigantic semis pulled in and sandwiched you in the middle, and ran their refrigeration units the rest of the night. Cost: $0. Memory: priceless.

Been there, done that...albeit with a 5th wheel rather than a motorhome.......those reefers are some noisy!

 

[kcowan]

If you die at 70, and you had to work until 65+, you will wish you would have skimped and retired earlier... Doing stuff in your 40s as a ER adventure, not at 65.

Our good friend did the OMY thing because the money was soo good (i.e. $100k for one month buying trip to Italy). Finally retired 5 years ago. But has let her health go for over 15 years and now can only get around with great difficulty.

She will never get to enjoy the tremendous wealth that they have amassed.

Now it is tough to feel sorry for someone who HAD to go to Italy every year! But we manage it.

 

[athena53]

I think DH and I did a good job of spending $$ on travel vs. saving for retirement, although we cut back in other areas that weren't important to us (restaurant meals, cars, up-to-the-minute fashions) to do it.

When the financial crisis hit, the value of our assets was depleted by multiples of my annual salary. Strangely, one thing that kept me sane was that we'd enjoyed some of the money along the way. It would have been much harder on me if we'd saved every penny and had that much more disappear.

Most of the investments recovered, of course, but it was a good lesson on the value of experiences.

 

[HFWR]

Been there, done that...albeit with a 5th wheel rather than a motorhome.......those reefers are some noisy!

I remember being at the Madison Regatta, circa 1972, when some reefer pulled in next to us...

 

[Lsbcal]

...

Now it is tough to feel sorry for someone who HAD to go to Italy every year! But we manage it.

We went to Italy in September for a month. I find it hard to figure out why I'd want to do it every year though. Is it the weather? We have a Mediterranean climate in California.

The historic stuff is fascinating but seems like one would not need a dose every year. Insights?

 

[NW-Bound]

Talk about investing in experiences, sometimes an experience requires you to get "stuff", such as an RV, a fishing boat, a motorcycle, etc... Many hobby activities also require tools and material. The only activity that does not require too much stuff is travel.

And about travel, having appeased the missus with a recent Maui trip followed by a Caribbean cruise, I wonder if I should start thinking about spending 2016 summer on an Alaskan RV trip. Or perhaps my wife has in mind something more like Tuscany or the Lombardy region?

Or should we do both? Next year, without wedding expenses and home projects (knock on wood), I should have more money available. But after a summer long trip, is there enough time, or do I even have the energy, to enjoy autumn in Europe? So many places to visit, so little time...

 

[Options]

Here's another, albeit outlying, perspective: some of us just don't care that much for travel. My generation (those wonderful boomers) McD'd everything--their houses, cars, jobs, clothes, vacations, and now their infamous "bucket lists". Ugh. I've always wanted nothing to do with any of it (not that I wasn't part of it, mind you).

I've promised to take my SO on a trip to the Caribbean this year and am having trouble getting myself to book it (however, other travel has been booked for this year). Some of us just prefer to hang out. And some of us really prefer adventures of the mind (ask me how many books I've read in the past year).

It's a lovely rainy day outside and I'm looking forward to curling up on my usual spot on the sofa in the deserted cafe near my house with my book. That's my kind of adventure.

 

[Chuckanut]

I've promised to take my SO on a trip to the Caribbean this year and am having trouble getting myself to book it. Some of us just prefer to hang out. And some of us really prefer adventures of the mind (ask me how many books I've read in the past year).

To each his own. If that makes you happy, why should anybody else judge?

FWIW, I don't think Baby Boomers are as monolithic a group as some people think. Other than having a similar age range (by definition), BBs are remarkably varied in just about everything, IMHO.

 

[2017ish]

...
FWIW, I don't think Baby Boomers are as monolithic a group as some people think. Other than having a similar age range (by definition), BBs are remarkably varied in just about everything, IMHO.

Although the categorization is pretty meaningless, I would even quibble with the "similar age range." DW and I always have felt that "boomers" referred "old people," as we came in near the end, in '60 & '61. (In fact, from wiki, it seems that some have jiggered with the cutoffs and would now include DW in the "X" cohort with our siblings.)

 

[NW-Bound]

...I've promised to take my SO on a trip to the Caribbean this year and am having trouble getting myself to book it (however, other travel has been booked for this year). Some of us just prefer to hang out. And some of us really prefer adventures of the mind (ask me how many books I've read in the past year).

It's a lovely rainy day outside and I'm looking forward to curling up on my usual spot on the sofa in the deserted cafe near my house with my book. That's my kind of adventure.

It's a rainy day here too. And I read books a plenty. Still have not been up to my high-country home since Labor Day (the low is in the teens right now), but I have spent time up there in the past reading, listening to music, while snow fell outside.

To each his own. If that makes you happy, why should anybody else judge?

FWIW, I don't think Baby Boomers are as monolithic a group as some people think. Other than having a similar age range (by definition), BBs are remarkably varied in just about everything, IMHO.

Yes, one should pursue his happiness in his own way.

For us, we do not really have a bucket list. When not traveling, we are homebodies, and usually only leave the home to run errands. But after a while at home, the wanderlust slowly sneaks back, and I wonder about the places that we have not been to and only read about. I don't really have to go to some particular place, but prefer to go where we have not been to before.

A concurrent thread about how time goes so slow when we were young compared to now points out the difference. When we were young and acquiring new life experiences, the days were exciting and last longer. And in old age, people tend to fall in a rut, and the repetitive days go by quickly without adding any new memory. They all seem to blend together.

 

[rayinpenn]

I've taken the kids to the Bahamas, Hawaii and several times to Florida. I sent the daughter to Europe too. All Funded by years of thrift ..couldn't be happier.


Sent from my iPad using Early Retirement Forum.

 

[NW-Bound]

... or pulling your motorhome into a vast truck stop on the Ohio turnpike and selecting a spot far from the existing semi-trailers to go to sleep, only to wake up at 1AM when two gigantic semis pulled in and sandwiched you in the middle, and ran their refrigeration units the rest of the night. Cost: $0. Memory: priceless.

Been there, done that...albeit with a 5th wheel rather than a motorhome.......those reefers are some noisy!

Our heroine SarahInSC would have a lot more exciting things to write about on her past Siberian trip with her husband. Now, that is a real adventure.

Talk about investing in experiences, sometimes an experience requires you to get "stuff", such as an RV, a fishing boat, a motorcycle, etc... Many hobby activities also require tools and material. The only activity that does not require too much stuff is travel...

I forgot to say that when the experience requires purchasing of "stuff", I buy the least expensive things to get the job done.

For a while, I and my son used to ride our dirt bikes into the forest whenever we had a chance to go up to my high-country home. I bought a couple of used motorcycles, and that got the job done. Higher-performance bikes would be wasted on us, and might even tempt us into riding trouble.

When I was interested in RV'ing, I found a good deal on a used class C that had but 15K miles, figuring that if RV'ing was not for me I would sell it cheap and not lose too much money. After, when I was into it and liked this mode of travel, thought about upgrading to something nicer. But then, I figured that the RV'ing experience would not get enhanced with a more expensive RV. So, this RV will be with me for a while.

So, I have a few toys but they are not expensive, because I am really into the experience than the "stuff". There are people who buy expensive boats, but they are not into boating or sailing. These are just their status symbols. I am not rich, so toys that I buy must have a good return in the experience that they provide.

 

[Aerides]

I view experience expenses - in moderation and not every 5 minutes - as part of the whole point of saving elsewhere. It's all relative, depending on your age, what the experience is, how much you can really spend vs. invest.

I don't travel often or willy nilly, but when I do I go a bit crazy and throw caution to the wind. Awesome hotels, awesome dinners out, etc. And yet I'll still haggle over trinkets and treasures for mementos.

If I'm thinking "when can we come back here" on the flight home - that tells me it was worth it!

 

[Music Lover]

Talk about investing in experiences, sometimes an experience requires you to get "stuff", such as an RV, a fishing boat, a motorcycle, etc... Many hobby activities also require tools and material. The only activity that does not require too much stuff is travel.

If one chooses their hobby wisely, the "stuff" may not that expensive. A boat hobby requires a boat, trailer, and a vehicle capable of towing both. Then there's the insurance, life jackets, maintenance, storage, and of course, the fuel used every single time you go out. It's easy to spend a lot to get started, and a lot to keep it going.

On the other hand, I have spent about $5000 on my music hobby to purchase instruments and amps, but after that initial outlay, I have no other ongoing costs other than $50 - $100 a year on strings, cables, maintenance, etc. To pick up my guitar and play for 2 hours costs nothing. To go to band practice or jam at a friend's place costs only the fuel to get there.

Travel may not require much "stuff", but it requires money to get there, money to stay there, and often money to do things while you're there. It can be done inexpensively or expensively, but every trip costs some money.

 

[NW-Bound]

If one chooses their hobby wisely, the "stuff" may not that expensive. A boat hobby requires a boat, trailer, and a vehicle capable of towing both. Then there's the insurance, life jackets, maintenance, storage, and of course, the fuel used every single time you go out. It's easy to spend a lot to get started, and a lot to keep it going.

I was thinking a kayak, a canoe, or perhaps even a small sailboat. One can enjoy getting out on the water with not too much money.

... On the other hand, I have spent about $5000 on my music hobby to purchase instruments and amps, but after that initial outlay, I have no other ongoing costs other than $50 - $100 a year on strings, cables, maintenance, etc. To pick up my guitar and play for 2 hours costs nothing. To go to band practice or jam at a friend's place costs only the fuel to get there.

I totally agree with you. If one is really into something, an investment of $5K-10K which lasts decades is really cheap.

I recall my life-long electronic hobby. Starting from my teenage years, I did not have a lot of money, so bought used electronics from salvage yards to get parts to play with. I now have expensive bench equipment (left-overs from a failed startup), but have grown a bit tired of this. Modern electronics are not really amenable to do-it-yourselfer hobbyists. But I digress.

Travel may not require much "stuff", but it requires money to get there, money to stay there, and often money to do things while you're there. It can be done inexpensively or expensively, but every trip costs some money.

Yes, travel costs money. But even here, as I look upon travel as an adventure (but not as much as a trek across Siberia or the Sahara ), I have found that with more modest means of travel, I get to experience the local scenery more. A pedestrian sees more than a rider of a limousine. So, frugal travel has brought me countless fond memories. I spend just enough for creature comfort, and while this means no hostels, it means no luxury hotels either.

And then, there are people who combine travel with living. One of my favorite blogs is "Kevin and Ruth". These people are real travelers, while I am only a tourist. They spend much less than I do, yet see a lot more.

 

[kcowan]

The historic stuff is fascinating but seems like one would not need a dose every year. Insights?

It was a buying trip for their business: leather shoes. And they always took side trips, e.g. Frankfurt, Vienna.

 

[spncity]

... or pulling your motorhome into a vast truck stop on the Ohio turnpike and selecting a spot far from the existing semi-trailers to go to sleep, only to wake up at 1AM when two gigantic semis pulled in and sandwiched you in the middle, and ran their refrigeration units the rest of the night. Cost: $0. Memory: priceless.

I'm looking forward to it (cough). Just need to sell the house.

 

[NW-Bound]

My best wishes.

I recall a night at an RV campground in Nova Scotia. We woke up at 2AM due to high wind rocking the motorhome. Holly molly! It was worse because I did not bother to put it on stands. Could it be a tornado? Where would we run for shelter? The power was soon out (we were plugged in). Peering through the windows, we saw that the local residents were staying put in their RV instead of running around like headless chicken, so we did the same.

Next day, the air was as calm as could be. We asked the locals and they said high winds like that happened once in a while. No cause for alarm. The TV news said that the power was lost over much of the province, but it was restored some time in midday.

 

[HadEnuff]

I'm 62, and just retiring now. Along the way I fantasized about retiring much earlier. What got in the way of realizing those fantasies was me not being willing to give up "living" a decent life along the way. Time with my young children, traveling across the country with them. Being home in the evenings with them, etc etc. After they grew up and moved out, we did our international traveling (some, not a ton of it). So, instead of retiring at 50 or 55 with none of those experiences, I retired at 62. Every time I recalculated what I'd need to retire early, and saw what how the value of letting my funds benefit from more years of contributions and compounding, I felt a great weight lift from my shoulders.
I have no regrets about the years I wasn't retired. 62 came fast enough, and I lived a life well balanced, for me.
And I no longer feel I need to travel internationally. The romance is gone, and all I remember is long security lines and uncomfortable airplane rides.

 

[W2R]

And I no longer feel I need to travel internationally. The romance is gone, and all I remember is long security lines and uncomfortable airplane rides.

I have zero desire to travel anywhere any more either, whether nationally or internationally. I traveled internationally nearly constantly with my family when I was a young girl, missing out on a "normal" childhood, and then as an adult I was required to travel quite a bit nationally for work. I think you and I already have had experiences that others may not have had, so travel is not all that new or glamourous or exciting (to me, anyway). The thrill is gone.

I'd so much rather awaken in my own bed, in my house where everything is the way I want for it to be. As for adventures, there is enough to explore right here in New Orleans to keep me happy for decades longer than I could possibly survive.

 

[NW-Bound]

The world is still a very large place. From the air, it does not seem that large, particularly when one crosses a continent on a high-flying jet in a few hours. But when on foot, one sees a lot more. And one must also know where to look. I am still learning this. I often read an article in National Geographic about a place that I have been, and see that the writer is able to view the same place with a different eye than mine.

People get different things from travel. Some don't get much, and that's a very personal thing. I guess it is the same as myself and spectator sports, which I find very boring. Watching a ball game would be torture to me.

Some people are perpetual travelers, and I don't see that I can do that, even though I consider myself a travel lover. I don't know how someone can say that they have seen it all.

The tedium of air travel is real. To compensate for that, I think I will need to stay longer to make it worthwhile. And when one has the time to wander the streets, poke into stores to look around, it's different than when one is on vacation and has to hit the major highlights quickly before heading back home. For example, when in Canada, I found it interesting that even their Campbell soups were different. They had flavors that one never saw in the US. Just to see what the locals eat or drink is interesting to me.

Travel can be tiring, hence I have to pace myself. When coming back from a long trip, I need time to recuperate, to be homebody for a while. Then, the wanderlust slowly creeps back, and I find myself looking for ideas again.

Life is great, when you have the choice to do whatever tickles your fancy, within reasons of course.