LBYMers, Could You Spend $300k A Year?

[kcowan]

We have friends who just donated $1 million to a local college!

Except for taking several cruises a year and drinking finer wine, they live just like us. He just upgraded his computer for the first time in 5 years.

 

[Khan]

I'd probably spend about a quarter of that (more than double current 'income') and give away the rest.

 

[Danmar]

WARNING:THIS POST MAY SOUND SMUG, INSENSITIVE OR ELITIST. NOT MY INTENT.

In an attempt to balance the discussion a bit I offer the following: You may not want to spend that much but if you did want to I assure you it isn't difficult. In our case the tough question would be could we cut our spending DOWN to that level. If you exclude alimony we might be able to. No new cars for a while, travel cut to the bone. Donations and gifts reduced. Medical procedures stopped. Drop a club or two. Defer or cancel new kitchen/bathroom at lake house. Reduce(eliminate) expensive clothing and jewellry.

When the financial crises hit we reduced our budget(excluding alimony) to a figure quite a bit higher than $300k. In panic mode I think we could have taken it down to $300k. Hopefully I will never know. I certainly do know how lucky we are.

 

[aida2003]

If someone gave me $300K once, I'd be reluctant to spend just for the sake of spending. But if I knew that money was coming to me year after year as FREE money, I'd find ways to use it.

 

[HFWR]

Would be a large leap, but I'm up to the task. Probably have all the gadgets I wanted after the first year or two. After that, lots of travel, from row concert seats, stuff like that.

 

[NW-Bound]

Here's one expense which would help anyone who has problems spending $300K a year: $19K/year to send a 4-yr old to preschool to prep for Ivy League.


TODAYMoms - Mom sues preschool for not prepping 4-year-old for Ivy League

 

[Hamlet]

I could spend $300k/year collecting vintage comic books with little difficulty.

Heck, if I wanted to I could spend that on a single book.

 

[powerplay]

I could spend the $300k easily each year. Much of it would be donations to charities I like to support.

 

[Fireup2020]

Yes, but only if I was already retired! Requires more effort than I am willing to exert at this time, but I am sure I could finagle it - and just donate the remaining! Would need more free time to travel - then I could put it to good use!

 

[RunningBum]

Here's one expense which would help anyone who has problems spending $300K a year: $19K/year to send a 4-yr old to preschool to prep for Ivy League.


TODAYMoms - Mom sues preschool for not prepping 4-year-old for Ivy League

$19K probably isn't that much in Manhattan. Daycare isn't cheap anywhere, NYC has to be very high for a decent place. And apparently that WON'T prep you for Ivy League.

 

[Major Tom]

Just being aware that there was a cheaper way to do things was enough to take the thrill off.

I hate that feeling - it spoils the fun of spending money!

 

[Orchidflower]

I volunteer for this horrid duty and sacrifice myself to it for the good of the rest of you...bhwahahahaha!

 

[NW-Bound]

$19K probably isn't that much in Manhattan. Daycare isn't cheap anywhere, NYC has to be very high for a decent place. And apparently that WON'T prep you for Ivy League.

True! The mom in the article simply expected too much for her measly $19K!

Some of us still remember the story of how, in 2002, Sandy Weill, then Chairman of Citigroup, had to intervene on analyst Jack Grubman's behalf to get the latter's kid into the preschool of 92nd St Y. Citigroup had made a big donation of $1M to that school.

Grubman said in an E-mail to a friend that getting into that preschool was harder than to Harvard. I wonder how many alumni of that preschool went on to become Nobel prize recipients.

 

[Moemg]

I could do it . First class travel to exotic locations . A house walking distance to the beach . Lot's of money to my daughter , SIL and grandson.

 

[GregLee]

I like Nero Wolfe's lifestyle --- would need at least a cook (Fritz) and a gardener (Theodore). I don't care for NYC, but it would be okay if I didn't have to go out of the house.

 

[audreyh1]

I think if I set my life up to spend that much, I would be so busy dealing with the crap associated with all the extra toys and stuff and or extra travel and hobbies, that I would be exhausted!

Honestly - if you have too much stuff it starts owning you, and you also often have to deal with more people to help manage your big stuff. What a pain!

I am not counting gifts and donations - IMO that is a separate issue. If I really HAD to "spend" that much each year, then half of it would be given away just to keep my life simpler.

I (retired) don't go out of my way to save money or "be frugal". I have always lived below my means but not extremely below my means. I just avoid buying a lot of extra stuff that I know I won't use enough to justify the hassle of owning it.

Audrey

 

[ls99]

Spend $300K/yr ?

No problem, anyone wants to grubstake me 300K per year can get full accounting of where the money went, for each year funded.

 

[GregLee]

Honestly - if you have too much stuff it starts owning you, and you also often have to deal with more people to help manage your big stuff. What a pain!

Sounds like you need a personal secretary.

 

[Meadbh]

I could spend $300K a year, but it would require some creativity after all these years of not allowing myself to think of the possibilities. So I voted for half. I could think of plenty of ways to get to that number without feeling too guilty.

 

[NW-Bound]

If I somehow stumble across a fortune of $10M, which would allow me to spend a 3% SWR of $300K/yr, I think I can find a way to spend it. No fast cars for me, but travel is or can be expensive.

Would it make me that many times happier (or less unhappy) than I am now? I doubt it!

For example, no amount of money would buy back the real molar I lost 3 years ago due to periodontal disease. Or it would not allow me to hire someone else to sit in the dentist chair to suffer the dental work in my place. It would not buy back my youth. It would not allow me to eat or drink more than I do now, without having to pay the consequences of such indulgence.

Still, if I had that money, I would allow it to trickle down to people who want to provide me with the goods and services, or even to people who simply need that money more than I do.

 

[Danmar]

I think if I set my life up to spend that much, I would be so busy dealing with the crap associated with all the extra toys and stuff and or extra travel and hobbies, that I would be exhausted!

Honestly - if you have too much stuff it starts owning you, and you also often have to deal with more people to help manage your big stuff. What a pain!

I am not counting gifts and donations - IMO that is a separate issue. If I really HAD to "spend" that much each year, then half of it would be given away just to keep my life simpler.

I (retired) don't go out of my way to save money or "be frugal". I have always lived below my means but not extremely below my means. I just avoid buying a lot of extra stuff that I know I won't use enough to justify the hassle of owning it.

Audrey

I must admit that I have never noticed the "crap" or the "hassle" that you are worried about. Maybe at some point?

 

[Moemg]

When the financial crises hit we reduced our budget(excluding alimony) to a figure quite a bit higher than $300k. In panic mode I think we could have taken it down to $300k. Hopefully I will never know. I certainly do know how lucky we are.

I do not think you sound elitist just someone who worked hard and made a lot of money to enjoy ! Congratulations !

 

[RetiredGypsy]

I try to think of all the expensive stuff I could own, and it always winds up with me being happier with things that cost less.

The Porsche? Nope. I can get a motorcycle for $11k that'd beat it in everything but a tight enough corner, and I'd enjoy it more.

The yacht? Nope. I'd rather rent a sailboat for a day or weekend here and there.

A mansion? I feel more comfortable in smaller spaces, and would rather have a home of about 1000 square feet or so, or an apartment of 750.

If I could buy the Armani suits, I'd still rather pay $4 for a baggy comfortable shirt at Ross.

I've frugaled myself.

 

[Independent]

I think if I set my life up to spend that much, I would be so busy dealing with the crap associated with all the extra toys and stuff and or extra travel and hobbies, that I would be exhausted!

Honestly - if you have too much stuff it starts owning you, and you also often have to deal with more people to help manage your big stuff. What a pain!

Audrey

I've thought that I could use the money would reduce the hassle, not increase it.

Instead of looking for the best price on flights and hotels, I'd just get a first class ticket on the convenient flight and a one bedroom suite at a brand name I can trust. I'd buy a car from a dealer who assumes he provides a loaner (or pick up service) for any service work. I won't sweat whether the furnace needs to be replaced or whether we can get a few more years out of it, just tell the heating guy to put the new one in. .....

 

[NW-Bound]

I try to think of all the expensive stuff I could own, and it always winds up with me being happier with things that cost less.

The Porsche? Nope. I can get a motorcycle for $11k that'd beat it in everything but a tight enough corner, and I'd enjoy it more.

The yacht? Nope. I'd rather rent a sailboat for a day or weekend here and there.

A mansion? I feel more comfortable in smaller spaces, and would rather have a home of about 1000 square feet or so, or an apartment of 750.

If I could buy the Armani suits, I'd still rather pay $4 for a baggy comfortable shirt at Ross.

I've frugaled myself.

Yep, as long as one is not hungry or cold, happiness is a state of mind and cannot be bought.