For Those Who Want To Increase Spending, On What?

[PatrickA5]

Reading this I've come to the conclusion that some of you are really, really rich!

We're on the other side. We need to probably spend less - not more. But, some big expenses are going away. College for the 3 kids are done! All kids are off the payroll. Two of three weddings paid for. Two new cars this year. It's time to get our spending down to a manageable level going forward.

Having said that, I'd like to maybe downsize our house to a smaller, but maybe more luxurious town home or some kind of place where all of the yard work is taken care of, etc. I'd be willing to up the budget for that. I'd also like to take some trips with the whole family (including grandkids). Maybe do a big Disneyland trip or something.

 

[38Chevy454]

We just purchased a snowbird getaway place. Besides the initial cost of little under $200K, yearly HOA/insurance/property tax is around $5K. That will be ongoing expenses.
Today with high 70s and sunny is exactly why it's a good reason for the increased spending.

 

[travelover]

It is winter here now, so in the spirit of BTD, I'm cranking the thermostat up to 60°.

 

[DayDreaming]

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.

I have to admit, I didn't think it was possible to spend that much on towels unless you were supplying a small motel. But I looked, and I see that you can easily spend over $1000 on a set of bath towels. Serious question: are your $700 towels really that much better than $50 towels?

 

[Ronstar]

We successfully ramped up spending substantially when we bought a 2nd home in 2002, furnished it, and traveled there 10 times a year for several years. We sold the place in 2019, but we didn't ramp back down.

My plan is to escalate my current tool buying spree. It won't be a substantial in terms of $. Just in terms of stuff.

 

[Gumby]

I have to admit, I didn't think it was possible to spend that much on towels unless you were supplying a small motel. But I looked, and I see that you can easily spend over $1000 on a set of bath towels. Serious question: are your $700 towels really that much better than $50 towels?

It was 9 Turkish cotton bath towels, 22 washcloths and a bath mat (plus shipping and tax), all on sale for 15% off from Frontgate. I think the normal price of those towels is about $30 each and a washcloth is about $14. Bath mat about $60. So there's your price for comparison.

To answer your question, yes they are better. The young wife is very particular about her bath linens. She did a lot of online research and then ordered single washcloths from a few places, at a variety of price points, to compare them for feel and color. These were the best. I don't recall if they were the most expensive. Probably they were. The last set we bought were of similar quality and price. As I mentioned before, they have lasted 18 years and the best of them will live on at the summer cottage in Maine. For a long-lived and quality product, I'm willing to pay good money.

In any event, we can easily afford it, although the young wife did agonize over the price for a bit.

 

[COcheesehead]

22 washcloths is a number that stands out to me. I don’t think we have a single one in the house. Shower buffs replaced as needed for us.

 

[Midpack]

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.

Not that I plan to annuitize any of our nest egg. Never thought about it, but I suspect it’s true.

 

[Midpack]

Reading this I've come to the conclusion that some of you are really, really rich!

Not really (OP). For many it stems from a lifetime of LBYM prior to retirement, hard habit to break in retirement after decades of saving. We had well paying careers so we lived comfortably, but for the last 10-15 years of my career, we saved 50-70% of our income, and we saved quite a bit all along. I worked until I was 2X FI, and DW kept working even longer. My peers always had more way more expensive homes, cars and vacations - always. Now it’s the other way around it seems with my peers…

 

[athena53]

I just got a $250K inheritance from my Dad and really don't need it- will be giving it to charity and putting it into my grandchildren's 529 accounts over the next 10 years. Oh, yeah- also filing for SS on my own record which will be a $1,500/month bump before taxes. I'm very happy with my standard and frequency of travel and my home and don't need more Stuff although I do have my eye on this bracelet for my upcoming birthday. (I'm going to wait for one of their sales so I can get 10-15% off. Old habits die hard.)

If I had a really large budget surplus. no new "wants" and no heirs I'd start a charitable foundation. I think I'd really enjoy that- there are so many worthy charities out there.

 

[W2R]

I would suggest that those who think they want to increase their spending, but don't know what to buy, probably are mistaken - - they really don't want to increase their spending.

Just be happy and enjoy your comfortable retirement! Put the rest into your nestegg in case of emergencies.

 

[COcheesehead]

Create a legacy, not just a pile of money.

 

[Dalmore]

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.

I wonder if this is because those living only off a pension never developed the same LBYM habits as those who had to save aggressively for FIRE had to? DW always had the umbrella of a government pension over her head. I've never had the option of a pension and only had 401Ks and investment accounts to build retirement security. As a result, I've always been the saver in the relationship and DW has never really given it two thoughts.

 

[NW-Bound]

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

There are places where you can rent one. I have not been inside one but read that they are not good daily drivers for many reasons, hence their owners only own them to look at.

I guess to own a Lambo, you have to love it the same as people love pieces of art or jewelries. For driving pleasure, it's cheaper to rent one.

 

[Gumby]

In my opinion, there are far more attractive cars than a Lamborghini, although the vast majority are from days gone by.

 

[Bamaman]

My wife and I have never enjoyed eating in expensive restaurants, and we no longer eat fast foods. We only eat out about once per week, and it's in a reasonably priced place.

My wife and I are both cooks. We grocery shop at Aldi's, and fill in with Kroger sale items. We mostly eat chicken, ground beef and a lot of pork--avoiding steaks due to the increased costs. And we eat lots of vegetables--salads one meal a day. As a type II diabetic, I no longer drink alcohol.

We spend weekends at our lake house--65 miles from home. We very seldom travel domestically--even to larger close cities. My wife's hobby is finding cheap international flights, and we don't mind sitting in the back of planes. We've traveled Europe 50 years, and we've been to virtually all the Eastern & Western Caribbean islands on cruises.

My wife has recently had some mobility issues, and she's got a great electric scooter that allows us to keep on traveling without any assistance. We just returned from Germany, and a Baltic cruise is scheduled the end of May.

We have a new hybrid SUV and a year old pickup truck--both were $15K less than the average price of cars/trucks. I'm giving my Lexus to my daughter, and my diesel pickup's going to her son. We have a fifth wheel RV in the Blue Ridge Mountains and it will be our last capital expenditure. We're fortunate to live in an ultra LCOL place and we have no property taxes.

Instead of increasing spending, we've cut our expenses to a minimum without lowering our standard of living. And we're just going to maintain the status quo in the future and take care of our health.

 

[athena53]

Someone already mentioned upgrading quality- a subset of this is buying American (or other countries where you trust the working conditions) where possible. There are many good German and Italian brands of shoes, sandals, etc. that are made there. Karen Kane and Amour Vert have clothing made in the USA. I do searches on "(Name of Item) made in USA" but you have to check carefully- sometimes the search conveniently leaves out the "made in USA" criterion.

Not a way to BTD with $100K extra a year but a good way to deploy what you do spend on on items made under fair working conditions and typically get better quality as well.

 

[kgtest]

We have found that a great way to spend more is to take the whole family on memorable trips (e.g. Hawaii, Disney, houseboating, skiing). There are 18 of us (us, kids, grandkids) so that gets rid of some cash but the grandkids especially love it and we think we are creating some lasting family memories.

I started doing this. I am only 40 and still technically working but I realized I will have enough even with ER so why not make some memories. My DF has seen that gift particularily valuable and I think he is catching on since I lead by example and now wants to take us on trips.

I could easily double my spending on vacations/travel. Or a fancy sports car or boat. My wants have evolved since my 20s and now travel is our biggest expenditure outside the mortgage and saving/investing.

 

[kgtest]

There are places where you can rent one. I have not been inside one but read that they are not good daily drivers for many reasons, hence their owners only own them to look at.

I guess to own a Lambo, you have to love it the same as people love pieces of art or jewelries. For driving pleasure, it's cheaper to rent one.

I started renting exotics when I travel (without the fam) the past 2 years. Going to Vegas, I might try a 911 Turbo, Lambo or Ferrari. My buddies will all be drinking but I don't, so I can BTD on something else which now is the car rentals. Can't take it with me when I die.

 

[Mulligan]

I wonder if this is because those living only off a pension never developed the same LBYM habits as those who had to save aggressively for FIRE had to? DW always had the umbrella of a government pension over her head. I've never had the option of a pension and only had 401Ks and investment accounts to build retirement security. As a result, I've always been the saver in the relationship and DW has never really given it two thoughts.

I feel that has a lot to do with it and certainly fit within those constructs. My pension had almost 15% withheld from my paycheck over course of career so it was largely done for me. Oddly I exhibit both tendencies now in retirement. I easily blow my pension money with not too much regard. But refuse to touch any of my investment money. And fact my pension is cola’d I doubt I ever change and use any of my investment money.

 

[W2R]

[...]
My wife has recently had some mobility issues, and she's got a great electric scooter that allows us to keep on traveling without any assistance. We just returned from Germany, and a Baltic cruise is scheduled the end of May.

Wow! That's pretty impressive. What kind of electric scooter did she get? (I don't need one right now, but who knows, I might at some point in the future and like to keep track of such things.)

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

I definitely don't want a Lamborghini, or any other type of sports car!! Nope, no way, not me. Although some people might pay a lot of money for tickets to see me trying to get in or out of one. Really I think they are better suited to those in their 20's or 30's, that still have great knee and hip joints.

 

[ksr]

My house is 37 years old and has hit a point where a lot of things need replacing. I've been working through the list, trying to take care of the priority items one or two a year.

If I wanted to have a big spending year, I'd consider just making a list of everything that remains and getting it all done in one year. However, it might prove too stressful!

 

[pb4uski]

Not that I plan to annuitize any of our nest egg. Never thought about it, but I suspect it’s true.

You might be able to achieve a similar result by arranging an automatic redemption/sale with the proceeds transferred to your checking account to be spent.

 

[TheWizard]

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...

Well nobody annuitizes ALL of their investment assets.
I annuitized enough a while back to get something over $8000/month income, as a single person.
Together with age 70 SS, this gives me more income than I need most months.

But I can't bring myself to spend "frivolously".
My trip to Oman in February will be coach, not business class.
I do fund (most) of my son's Roth IRA each year.

My next new car has already been paid for with excess income that I've invested in 2021 alone.
But both my 2008 Mustang and my 2016 F-150 still run fine, so I'm in no rush.

I am planning on going out for pizza and beer mid-day Wednesday, so that should blow a few bucks...

 

[meleana]

We have only spent more on eating out in order to be social with some people, and a little bit on entertainment like live comedy shows, etc., but that is about it. (Of course, these days our food bill is overall much higher anyway)


We wanted to do a little traveling- to Italy and Switzerland where we have never been (we have only been to Scotland in Europe) and maybe the Dakotas for the national parks, but the pandemic restrictions squashed that for us for now and who knows if we will ever get to go. I find I am not making any plans because of the pandemic restrictions, and because I right now have to deal with a possible health issue.



I would love to have a small fishing type boat since we live in a lakes region, but we have no where to store it. And then, of course, we would also need a trailer for it.



I always hope our single son would be able to buy an inexpensive condo but there isn't anything for sale where he lives (he wants to stay in the same town)- or even anywhere in this state- inventory is at an all time low and prices at an all time high. We could help him a bit with the down payment.



At some point in the far off future we might need a new car (ours are a 2013 and a 2016) or there could be a home maintenance issue or maybe the need for a new piece of furniture, but nothing right now thankfully.



Soooo....keeping our money. Not such a bad thing for sure