For Those Who Want To Increase Spending, On What?

[Sojourner]

If I were to try to bump up our spending by, say, 30%, I'd do it by booking only first-class air travel and staying only in private, swanky Airbnb condos/apartments while traveling. This is what I'm hoping to convince myself to do within the next few years, since I'm spending far less than FIRECalc says I could.

 

[steelyman]

I’m getting some landscaping done (just started this week and already looks nice). That should cover any spending itch I have through spring!

 

[COcheesehead]

A big one I forgot about is we established a scholarship fund at my alma mater

 

[RobbieB]

Removed popcorn ceiling and painted whole house outside and inside. New kitchen counters, floor and appliances, new flooring rest of house, landscaping, patio and paver paths, 3 sheds, and a shed deck, 2 late model cars and a boat.

 

[levindb]

To spend more, we did some chunky spending, but are still frugal with our daily lives:

1. One month in Alaska (7 day cruise followed by 3 weeks in an RV)
2. World cruise (137 days)
3. African Safari, 6 weeks, in 5 different countries
4. Purchased our 'forever home' and sold our previous 'forever home' because travel was shut down for a while.

...all within the last 6 years. DW has the task to find more chunky spending for future years...and she has been good at it.

 

[Gumby]

We did just drop over $700 on a completely new set of bath towels and washcloths. The old ones were over 18 years old and looking a little ratty.

 

[Teacher Terry]

Booked a trip to Ireland in June for 4200.

 

[flyingaway]

This thread is more and more like the BTD thread.

 

[Aerides]

Ok this would not be hard for me:

Add a cleaning service - hire out everything that gets you time back (we already have lawn service) stop DIY'ing things I can do but could afford to pay a pro, unless I really enjoy them
Upgrade towels and linens (Frette, et al)
Upgrade/replace furniture more often. I can get bored very easily. I'd replace my mattresses more often too
Try to acquire a taste for more expensive wine!
Travel is easy, I already have expensive taste there. There's a hidden value to be had in the higher priced hotels as they are usually in the best locations, saving you time every day of your trip that you can put right back into enjoying yourself vs. schlepping. Plus the service is usually amazing
Replacing/upgrading big stuff before you NEED to: I'd love a new set of appliances but the current ones look nice enough and work fine. Our flooring could do with replacing, but has a few years left. Same with our roof.
New window treatments - chances are all of us could get an real upgrade in here, it's amazing how the right ones can change a room for the better. And don't just pick and DIY, hire in a designer to get it right, and open up options you'd never have considered.
New closets - get a pro in to redo and upgrade them. No more white racks, no more plastic hangers (I did this and it's wonderful)
Lighting - I'd love to hire a lighting expert to come throughout my home and optimize the lighting in every room vs. just what I think would look nice


This year we added a pool, and the payments were spread over last year and this, so I think those probably added 30% to both years.

 

[luckydude]

I read all the threads on spending more and associated methodology with interest. We spend far less than a “safe” amount according to any calculator - and ‘underspend’ isn’t trivial. Which always leads me to ask myself what would we spend it on? More expensive cars? [-]Buy a boat (again)?[/-] [-]A bigger house?[/-] More/better travel? Dining out way more/better? Way more concerts/theater? Way more/better golf? Way better wines? Since we don’t feel at all ‘deprived’ on any of these categories, it just seems pointless to spend more to us. We have already increased spending on all the above a little. The only category we’ve upped that we could spend more on are charities.

But for those who have successfully ramped up spending substantially - maybe twice as much as a guide, what did you spend it on? I’m not asking about how to spend 5-10% more, that would be easy enough.

Even 10 years into retirement, we find breaking the LBYM habits that served us well during our 35-40 year careers almost impossible to break. That and accounting for some geopolitical black swan…

Yes, we know we’re very fortunate.

Pre-pandemic we were spending between $40-50k annually on vacations (solo and family), usually 4-5 trips big and small a year, constrained largely by kids' school schedule and DW's work.

Assuming the pandemic eventually passes, we are planning to bump it up to $150k annually for the next decade or so to take advantage of our remaining active years before we slow down---flying business class all the time (instead of only on long hauls), taking longer trips (especially once kids go to college), doing more private tours with hired car/driver in big cities for convenience and to avoid crowd, and destination trips for mountain biking.

Another thing I would like to do is to buy a big spread (400-500 acres) with some elevation change (say, 400-500 ft from bottom to top), preferably within a couple of hours of our primary residence where I can build my own trails to hike/bike and get away from the world (and to hide out in the next pandemic).

 

[NW-Bound]

Although the suggestions here are mostly incremental and discretionary I don’t think they would amount to a lot of additional spend (besides “six figures of gifts and charity”).

To spend up to what FIRECalc says I could, I would need to blow a six-figure sum each year. But on what?

The last few years, I have not used my 2nd home in the high-country as much as I did when I first bought it 15 years ago. Just recently, told my wife we needed to go up to spend a few nights to check it out, and she declined saying that it was too cold.

 

[NW-Bound]

Speaking of family vacationing together, I have paid for a couple of trips, and told my wife that next time I will only do cruises with my children and their spouses.

We have different interests and travel styles, and it's not easy to make compromises. On a cruise, we get together for the dinner, then every couple does their own things during the day. Works out much better that way.

 

[jkern]

I'm quite happy with my standard of living, but we plan to upgrade travel post covid. My wife and I plan to upgrade to first class on flights over 4 or 5 hours and upgrade to higher end hotels where needed.

 

[street]

To spend up to what FIRECalc says I could, I would need to blow a six-figure sum each year. But on what?

The last few years, I have not used my 2nd home in the high-country as much as I did when I first bought it 15 years ago. Just recently, told my wife we needed to go up to spend a few nights to check it out, and she declined saying that it was too cold.

Charity.

 

[Katsmeow]

When I read these kinds of threads I can see that there are people who enjoy things you spend money on more than people who don't. Now, when I read of people who have incomes in retirement of several hundred thousand a year I can understand having met all their spending desires. I am always bemused by people spending under $100k who can't think how to spend money. Let's just say I don't have that problem.

Now most of the below are things that I don't do at this time as they exceed my budget. Well, I do some of them but not every year:

1. Stuff to read. This year I spent about $100 a month on Kindle books. I also subscribe to multiple online magazines and newspapers. I could easily spend at least $1000 a year to subscribe to several substacks that are $100 a year. As much as I spend on reading I could easily double it.

2. New car more often. I like newer up to date cars. Right now we have a Volvo XC60 bought about 3 years ago. We will keep it several more years. We don't have a second car (we used to but weren't using during the pandemic). So I could easily buy a new second car and buy a new car every 3 years or so.

3. Computers and other related stuff. Right now I have a fairly good gaming computer that was about $4600 a year ago. However, I easily customized one that was $7000. And I could easily customize a $4k notebook. And DH could do the same. And better monitors, etc. And replace them every 3 years.

4. More travel. I don't love travel so even with unlimited money I wouldn't travel as much as many people. But, when I do travel I could easily stay at higher end hotels, etc.

5. Remodel my kitchen. We did a major house remodel 2 years ago. But, we didn't do the kitchen. Could easily spend over $100k on the kitchen.

6. Move. I like my house and it is very convenient to all amenities. But I could easily find a use for a newer house that cost 3 times as much.

7. Someone to clean my house weekly.

8. Personal trainer 2 or 3 times a week. I have actually done this one in the past and may do it again when I start going to gyms again.

9. Second house in a better climate for the summer.

10. Dining out more often.

I could probably continue this list for a long time....

 

[Delawaredave5]

I've never cared about "materialistic luxuries" (and older I get I care less)

Spending more on materialistic cr*p is "negative joy" for me.

More important than money is TIME.

I have friend who pays a college age person part time to be a "concierge" - paying bills, running errands, taking cars to DMV, reconciling medical bills, household organization, other miscellaneous things.

Now that's a good use of money !

 

[aaronc879]

OP, do you have kids? If you do, gift to them. If not, how about siblings?

 

[street]

I've never cared about "materialistic luxuries" (and older I get I care less)

Spending more on materialistic cr*p is "negative joy" for me.

More important than money is TIME.

I have friend who pays a college age person part time to be a "concierge" - paying bills, running errands, taking cars to DMV, reconciling medical bills, household organization, other miscellaneous things.

Now that's a good use of money !

I like the way you feel about time also. I also would have someone take care of all the money matters if something happened to my beautiful wife.

She has done all the financing and I don't really care to do that type of thing. All I need to know, and I do the numbers each month of where we are at with investments. Bills, medical, licenses, taxes and those type thing I would hire someone also.
It would be money very well spend IMO.

 

[Dash man]

We chose to give over six figures to church/charity this year, plus gift some money to our kids and grandkids. I also got a new car with all the updated safety features. The IRS received a chunk of change for Roth conversions, again. Probably will for the next four years.
Don’t know if the large charity giving or family giving will continue, since we take one year at a time. But we really enjoyed being able to help.

 

[retired1]

San Juan (PR) hotels cost will get spending going It's so high.

 

[Finance Dave]

We have not increased spending substantially, but agree with the idea of not locking ourselves into anything long-term. We have lived "at" our means lately, not above or below. For us the peace comes from knowing that a very high portion of our spending is discretionary...so it's easy to cut back if things go south.

Also, my DW and I joke around about our spending patterns. She tends to spend $20 here and $40 there...about every week...on some decoration for the house etc. On the other hand, I don't spend much of anything for months or even years at a time...then all of a sudden...BAM....$80,000 on a new sports car.

We always discuss any purchases over $200 before doing so, and it's always in the budget...so we have no issues there.

Merry Christmas everyone! I'm always grateful for all the good info and advice from those on this forum...thanks!

 

[NW-Bound]

To spend up to what FIRECalc says I could, I would need to blow a six-figure sum each year. But on what?

The last few years, I have not used my 2nd home in the high-country as much as I did when I first bought it 15 years ago. Just recently, told my wife we needed to go up to spend a few nights to check it out, and she declined saying that it was too cold.

What I meant was that the increase above my current spending could be a 6 figure, meaning my BTD budget can be a 6 figure above what I spend now.

I could buy a Tesla each for myself and my wife and throw them away each year (meaning not even trade them in). But I don't care about cars. They are just transportation.

When I travel, I stay in comfortable lodging. I like to wander through the European countryside, and see how people live, what they shop and eat. I don't care about opulent hotels, they don't interest me. I would have to bring nicer clothes, and I like to travel light. And they don't have opulent hotels in the places that I like to visit.

In foreign places, I enjoy their everyday food. I watch videos of some fancy restaurant meal and see that they serve "foam" for haute cuisine. What the heck is that? Sounds like emperor clothes to me.

I like to hike and to walk. I don't think viewing a foreign city from a chauffeured car is a better experience. Well, maybe it is safer, but then I do not like to go to dangerous places like that. If I am curious, I can watch videos.

At home, we like to cook and eat our own food better than going to restaurants. We could not go out to eat every day, even if it were free. And I am not talking about fast food which we eat about once a year, for the sake of convenience in some situations.

I cannot eat or drink more. I would die. Consuming fancier and more expensive food? They often don't taste good to me, or get tiresome quick, and I crave for a simple salad.

Charity.

By starting to track expenses in 2012, I see in Quicken that the cumulative gift/donation has exceeded my total travel expenses due to lack of travel the last 2 years. My travel expenses include all the RV'ing expenses too.

Yes, I always can give more. This takes some thinking though, as misplaced charity donations are just waste of money. And I don't want to go overboard and not have enough later for ourselves when the market turns off the spigot. Or I may need the money for my family if something bad unexpectedly happens. Right now, my children don't need any help because I have helped them enough and they are thriving already.

And frankly, I am not that generous yet to give away a 6 figure each year.

I don't understand how people struggle to find a way to spend more money. Lack of money is a real problem, but having too much of it?

If spending it on something makes you happy, then do it. If you crave something, buy it. If not, then why? Is it because you are afraid you are missing out? Does burning money in a bonfire make you happy?

About the only splurge we would enjoy is better airplane seats.

 

[Dtail]

Would get pleasure from driving a Lamborghini, but have other priorities right now.

 

[Gumby]

....
Yes, I always can give more. This takes some thinking though, as misplaced charity donations are just waste of money. And I don't want to go overboard and not have enough later for ourselves when the market turns off the spigot. Or I may need the money for my family if something bad unexpectedly happens. Right now, my children don't need any help because I have helped them enough and they are thriving already....

I find myself with the same sort of thoughts. FIRECalc says we could double our spending, but I can't think of anything thing we need or want that would accomplish that. I know there are also needs in the world that I can help with by giving to charity. For that reason, we always have and always will give generously; it's already built into our current budget. We obviously could give more, but the future is never 100% clear, and I don't want to put us in a position where we have to be the recipients of charity ourselves. We have no children or other possible support, so we must necessarily be more conservative in that respect. Ultimately, my thought is that the world's needs will always be there, and once we are safely to the end, charities can have the remainder of our money (which will likely be substantial).

 

[Mulligan]

I read all the threads on spending more and associated methodology with interest. We spend far less than a “safe” amount according to any calculator - and ‘underspend’ isn’t trivial. Which always leads me to ask myself what would we spend it on? More expensive cars? [-]Buy a boat (again)?[/-] [-]A bigger house?[/-] More/better travel? Dining out way more/better? Way more concerts/theater? Way more/better golf? Way better wines? Since we don’t feel at all ‘deprived’ on any of these categories, it just seems pointless to spend more to us. We have already increased spending on all the above a little. The only category we’ve upped that we could spend more on are charities.

But for those who have successfully ramped up spending substantially - maybe twice as much as a guide, what did you spend it on? I’m not asking about how to spend 5-10% more, that would be easy enough.

Even 10 years into retirement, we find breaking the LBYM habits that served us well during our 35-40 year careers almost impossible to break. That and accounting for some geopolitical black swan…

Yes, we know we’re very fortunate.

Midpack, I think your best bet to spend more, is to convert all your assets into pensions and annuities. You will piss it away easier, lol..
Research has found that retirees who get most of their income from pensions and annuities spend more freely in retirement than those who rely on income from an investment portfolio.

J.P. Morgan looked at both types of clients and equalized their retirement wealth by creating net present values for Social Security, pensions, and annuities. It found that among clients with $1 million to $3 million in net worth, those that received 60% to 80% of their income in regular payments spent 26% more in retirement than did those who got only 20% to 40% of their income from regular payments. Those with $3 million to $5 million with more regular income spent 47% more.

“They spend significantly more than households that are staring at account balances,” says Katherine Roy, chief retirement strategist for J.P. Morgan Asset Management.

Moreover, spending habits built up during a life of saving can be tough to overcome in retirement. “The skill-set required to create a nest egg is the exact opposite of the one you need to spend it,” says David Blanchett, head of retirement research at the PGIM unit of Prudential Financial , who co-wrote a paper on underspending in retirement with Michael Finke, a professor of wealth management at the American College of Financial Services.

https://www.barrons.com/articles/retirement-spending-nest-eggs-savings-51639778414