Teach me how to BTD

[Helen]

We started out being really cheap until there was a shooting death a door down from us in a motel we were staying in. That was when we first retired, we decided to upgrade our accommodations after that.

Now we add our pensions + 4% of our investments and spend within the budget.

I think trusting the 4% rule or 3.5% rule is key. Set your budget so you know what you can responsibly spend then go enjoy your life.

[Ramen]

Thank you all.

I agree that this would not be a material investment. Likely the painting would end up in my tiny estate sale someday or with a friend or at Goodwill. Until then it would be purely for personal enjoyment.

@Aerides, that's a good mental exercise, and I've pondered a similar scenario. I'm not attached to things enough to feel regret if I miss out, but I have seen the painting twice and instantly get a must-have feeling when I stand before it.

As for the price, normally I might haggle, but it's clearly priced well below other works (in the host gallery as well as in other local ones) of the same size and quality. Other large works go for $3K-$4K.

Also, the small piece I bought last fall for $300 is by the same artist and amounts to far more $ per square foot (almost triple). I love it and get drawn into it each time I look at it.

@MarieIG, I have not yet upped my WR. After that thread last year, I mentally approved the increase but somehow ended up not needing it. I was expecting a large rent hike that never came. It could/will come later, and that's when I'll give myself that raise.

@Helen, thanks, good point. It's dawning on me that this retirement is the rest of my one life. Am I going to enjoy it or not?

[kingkarmann]

Buy what brings you love and joy.
For the most part what you covet others do too. That can bring value if you hang on to it long enough.
Think of being a caretaker for the next aficionado.
My username might give away what brings me joy

[Sunset]

Quote:

Originally Posted by mrfeh I would most definitely not consider the painting an investment. I would guess the chances of the OP selling it for a profit at some point in the future is close to 0%.

Highly likely it's impossible to re-sell.
I see on nextdoor folks giving away paintings for free.

Only one I wish I had bought was directly from the artist, in Cuba, a local scene and the cost was $5 unframed of course, would have been a great souvenir.

[threegoofs]

Quote:

Originally Posted by Ramen How do you decide what to BTD on? Was it always easy for you? Did you start small and work up? Do you use a formula, such as a percentage of your total spend? Do you count leisure spending with core expenses? Or do you simply buy what you love and enjoy it without worry or full calculation?

The best way to do this is to know your expenses.

You have ‘x’ amount of money per month (or year) to spend. Fix that amount.

Then, divide it up into fixed expenses, intermittent expenses you save for (vacations, repairs, etc) and a third bucket of general spending.

Know the number for general spending - thats how much you can blow on stuff without thinking about the consequences. Maybe its a lot, and you wont have to be concerned about $1400, or maybe you need to divert some of that to saving for the purchase, and forego general spending for a bit.

But having that number, be it monthly, weekly, yearly, is a good way to not fret about splurge purchases.

[MarieIG]

It sounds as if this is within your budget, and that you would enjoy it long term. Let us know what you decide to do.

[Winemaker]

Quote:

Originally Posted by mrfeh I would most definitely not consider the painting an investment. I would guess the chances of the OP selling it for a profit at some point in the future is close to 0%.

I have sold 3 Beverly Doolittle prints and made a nice hunk of change. Not enough to buy a car, but enough for DW and I to fly upfront to Hawaii and back after 10 days.

[Walt34]

Quote:

Originally Posted by Ramen How do you decide what to BTD on? Was it always easy for you? Did you start small and work up? Do you use a formula, such as a percentage of your total spend?

No formula or set plan, but we're both "value oriented" and will spend money if we think it's a worthwhile thing or experience to spend on. But that is tempered with the knowledge that we cannot do that every month and remain solvent so that puts the brakes on a lot of impulse purchases. We almost never make impulse purchases of any kind. But then if it's something we've been considering for a while and a deal comes up we'll jump on it. I'm not sure if that counts as an "impulse purchase".

My last BTD buy was an $1,100 garden tiller and I'm not even a gardener. Although now that I have the most expensive tool for it (aside from maybe a greenhouse) I might try that. I'll be using it for a dozen or so bare areas that have been bugging me for years in the lawn, and I'll be the first to acknowledge that is easily considered an unwise thing to spend lots of money on. But, "you can't take it with you" so at the same time there's no point in keeping gobs of money around for no good reason if spending some will give you a bit more enjoyment. What number that is, is of course a very individual thing and can change a lot with one's circumstances.

I do enjoy pretty much any tool with an engine or motor on it, and this one even has gears in a transmission! I do enjoy using it and am so far very happy with the purchase. It's been something I've "kinda wanted" for a long time but just never had the inclination and the money at the same time. That little Honda FG100 tiller we used at the old house was okay for it's size but it won't come close to doing what I need it to do now. (The link is to the current version but it looks the same.)

DW's BTD project is spoiling the grandnieces and grandnephews rotten. Few things give her more pleasure than that, so we spend on that too.

Important to all of this discussion/outlook is that both of us grew up relatively poor. While we were never wondering where our next meal was coming from there was little extra besides that and we both grew up hearing "we can't afford that" or "that's for rich people". So having the option to go out and buy something like that tiller "just because I want it" still feels somewhat new. We'll probably never completely get over that, and I can understand how someone would choose to live like a pauper and have a seven figure bank account. They don't want the money; they want the options that money gives them even if they never use those options.

[Ramen]

Quote:

Originally Posted by arcyallen This is an EXCELLENT podcast episode that addresses exactly what you're asking about. I'm generally not a fan of "blowing dough", but the guest Ramit Sethi suggests some exercises that I think are spot on for you. As someone who's been frugal forever and now has "more than enough", it's an interesting thought process to understand how larger purchases might bring joy vs just wasting money. I don't agree with a lot of Ramit says, but he has some eye-opening points.

Thanks, do you have a link to this podcast? Or an episode number? Is it on Sethi's website?

[freedomatlast]

Picture your beneficiaries blowing their inherited money after your death. That may help you loosen up a bit, lol. Really, now's the time to enjoy what you've worked for and it's time to enjoy ER without the burden of counting every cent that you spend.

[MC Rider]

You all are convincing me to build that garage. Whether you knew it or not. I hate not having one, and it will not make too big a dent in the finances.

[Ramen]

Quote:

Originally Posted by MC Rider You all are convincing me to build that garage. Whether you knew it or not. I hate not having one, and it will not make too big a dent in the finances.

Interestingly, another time I hemmed and hawed over $1,400 (or about that amount) was 15 years ago when I wanted a prefab metal carport to keep the sun and snow off my vehicles. I was in deep frugal mode then (saving for FIRE) and felt it was a huge amount. But I went for it anyway and was thrilled with it. I no longer own that place, but I would do it again, this time with no hemming and hawing.

[MC Rider]

Quote:

Originally Posted by Ramen Interestingly, another time I hemmed and hawed over $1,400 (or about that amount) was 15 years ago when I wanted a prefab metal carport to keep the sun and snow off my vehicles. I was in deep frugal mode then (saving for FIRE) and felt it was a huge amount. But I went for it anyway and was thrilled with it. I no longer own that place, but I would do it again, this time with no hemming and hawing.

Sounds like you should get that painting before it is gone.


As for our garage, I pfa guesstimated $15k - $20k for a 2 car prefab steel building on a concrete slab. I did not realize permits would be so expensive, did not consider electricity to it (expensive), or insulation which will be especially good for those 100 degree days in summer. Try $30k. I have no comment on the required setbacks.

[SnowballCamper]

Quote:

Originally Posted by Ramen How do you decide what to BTD on? Was it always easy for you? Did you start small and work up? Do you use a formula, such as a percentage of your total spend? Do you count leisure spending with core expenses? Or do you simply buy what you love and enjoy it without worry or full calculation?

I started small, and wouldn't say I've gone huge...maybe big. It's about what is enjoyable...and if you're retired, you likely know what that is by now...or figure it out with a few short years of the retirement date. I still have a monthly & annual budget to stick with, but the goal is not to die rich ;-)

Oh, and stuff ain't getting any cheaper over the years!

[arcyallen]

Quote:

Originally Posted by Ramen Thanks, do you have a link to this podcast? Or an episode number? Is it on Sethi's website?

Sorry about that! I did a good job copying the address...not such a good job pasting.
https://www.madfientist.com/ramit-sethi-interview/

[Ramen]

Quote:

Originally Posted by arcyallen Sorry about that! I did a good job copying the address...not such a good job pasting. https://www.madfientist.com/ramit-sethi-interview/

Thanks, great discussion. The last line is what I needed to hear!

[iloveyoga]

There are plenty of things I think about buying but I don't and I have always been that way. So when I see something that I really want and I think that I will use and the price is right, I usually buy.

Our biggest splurge to date was redoing our backyards decks, adding an in ground pool, and updating the landscaping. We did that in 2018, DH did as much of the work as possible, but it was still expensive. We have used the pool almost every day that we could since it was done, so I have not regretted any of the $$ spent. Probably not good for resale here in Iowa but we plan to stay in our house as long as we are able. I consider my backyard to be my oasis.

[ownyourfuture]

Quote:

Originally Posted by Ramen How do you decide what to BTD on?

If it's something you really want, and you can afford it, don't overthink it.
I've wanted one of these since I was a little boy collecting coins.
Even though gold is approaching $2000 an ounce, I'm going to buy one soon
Arguably the most beautiful US coin ever minted.

[Ramen]

I bought the painting. It will be delivered and installed at the end of the month. Two smaller ones are arriving at the gallery next week. I've seen photos and am considering them, about $500 for both. Good thing my wall space is limited so I won't go too crazy.

The money will come from my MM cash reserves, and I'm not going to record the expenditure. As Ramit says in the podcast above, if you're going to enjoy life, you must get out of the spreadsheet.

Quote:

Originally Posted by iloveyoga I consider my backyard to be my oasis.

My living room is as close to an oasis as I have, so I guess I'll be soaking in a tub of art. My collection will amount to a month of living expenses, so if I have to die a month early to cover it, so be it.

[audreyh1]

That’s great, enjoy!