Teach me how to BTD

[Ramen]

I'm in my third year of a lean FIRE
and finally relaxing a bit, not quite as afraid of outliving my modest stash. But I am still pretty frugal (it's how I got here at all) and probably watch my balance way too often. Through various nips and tucks, I have managed to keep my personal inflation rate at zero for the past two years.

Yet recently I have bought a few pieces of gallery art, framed photos, for about $60 each, plus one small original painting for $300.

Now I'm flirting with a large original painting that I love for $1,400. This seems exorbitant even though it's less than a month's rent and probably not even a weekend getaway for those of you who travel.

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?

If I were still working, this would be a nonissue, but I did not include an art fetish in my FIRECalc scenario when I was deciding to pull the plug.

 

[Calico]

Paging RobbieB.

 

[RobbieB]

If it's a large original then there is only one of them.

So, do you like it enough to buy it before someone else does?

 

[FlaGator]

There have been things come up that I didn't expect like car accidents, a new relationship and an intermittently great stock market at points along the way. I have spent much more than expected when I pulled the plug 8 years ago. I kept the spending tight the first few years, then became less anxious after 59.5, and even less so after the SS window at 62. Figured I had more options at the point.

BTD on things I previously thought I was done with-nice watch, a motorcycle, relationships, and "inheritance advances" to kids via Roth IRA contributions. The market gods have been kind and I'm sitting with as much now as when I started, with a shorter life ahead.

I run Firecalc at least annually to confirm I haven't put myself in a hole, and otherwise don't worry about it. Most of the BTD has been one-time and only modestly added to my recurring expense, and I'm always watching that.

One thing is clear-taking on a new relationship has "distorted" my budget. Be prepared and not frustrated if you go that way.

 

[jim584672]

Buy the dip?

 

[Ronstar]

How do you decide what to BTD on?

If I find something that matches my interests and I can afford it, and if the cost seems reasonable

Was it always easy for you?

no, but as I get older, I feel the need to buy things and go places now while I still can

Did you start small and work up?

not necessarily, if I find something I like, I go after it, mostly regardless of cost - as long as I can afford it and the cost seems appropriate.

Do you use a formula, such as a percentage of your total spend?

no

Do you count leisure spending with core expenses?

I don’t categorize expenses anymore.

Or do you simply buy what you love and enjoy it without worry or full calculation?

pretty much, but within reason.

BTW OP- buy the art piece.

 

[old medic]

I can easily fix your problem...
Its not a BTD moment... Its an investment you can enjoy.

 

[FLSUnFIRE]

If you can afford to spend more but don't and feel deprived that is a problem. Spending less than you can and happy, don't worry about BTD. If you can afford the painting buy it... also negotiate. Contacting the artist directly might get you a better deal rather than paying the gallery mark up. I bought a piece by a local artist that had works hanging in the tap house I used to regularly go to and moonlighted at for a while. I liked the piece and has some sentimental value reminding me of that place and time. $500 ($750 was asked on the online gallery he listed his work through) was a big splurge for me but no regrets (it was just as I was pulling the plug during my OMY). I'm eyeing another piece now, coincidentally, also hanging at another fun job as my bike tour starts at a shared location with local artists. I am not an art collector but if I buy another I'll have two so maybe that qualifies?

 

[audreyh1]

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?

It’s all about priorities, not just about BTD for the sake of BTD.

We are very aware that at this point our time is our most precious asset and years of good health we have left are shrinking. Quality of life is important.

And we do have a overall budget we stay within. It’s become increasingly generous.

 

[mrfeh]

I can easily fix your problem...
Its not a BTD moment... Its an investment you can enjoy.

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%.

 

[steelyman]

Yet recently I have bought a few pieces of gallery art, framed photos, for about $60 each, plus one small original painting for $300.

Now I'm flirting with a large original painting that I love for $1,400. This seems exorbitant even though it's less than a month's rent and probably not even a weekend getaway for those of you who travel.

Sometime around 2000, I spent a long weekend in downtown Chicago with my girlfriend and we were doing the shopping bit on Michigan Ave. We stopped in some gallery that was selling framed prints from “The Secret Art of Dr. Seuss”. One in particular mesmerized me, I thought long and hard about it but eventually passed it up. I still wish I hadn’t but I do remember it, very bizarre but definitely “Seussian” and fun.

https://youtu.be/3WSk86uIx2E

 

[DrRoy]

If I find something that matches my interests and I can afford it, and if the cost seems reasonable

no, but as I get older, I feel the need to buy things and go places now while I still can

not necessarily, if I find something I like, I go after it, mostly regardless of cost - as long as I can afford it and the cost seems appropriate.

no

I don’t categorize expenses anymore.

pretty much, but within reason.

BTW OP- buy the art piece.

100% +1 here.

Would you regret more not having the painting, or not having the $1400?

 

[mystang52]

If spending the money has no true impact on your day to day lifestyle or net worth, you can afford it. If buying it would make you happy, it's worthwhile. If NOT buying it, especially if you cannot buy it later, would make you upset then buy it now.

 

[MarieIG]

https://www.early-retirement.org/forums/f28/should-i-give-myself-a-raise-114865.html#post2809839

Did you increase your withdrawal rate, and if so, how has that been going?

Personally, I plan to have funds ready for the necessaries before I consider discretionary purchases. Regarding discretionary purchases I set aside the funds to pay for them prior to making the purchase. I postpone them a bit to cut down on impulse purchases. I find that I want less "things" for myself then I did previously. Our travel has been centered around helping family and is part of our regular monthly expenses.

Concerning the art, how long ago did you buy your first pieces? Can you tell us about them? Will you continue to enjoy the large piece, or will you hang it on the wall and want to move on to the next one? If you have the money, and would obtain ongoing enjoyment from the purchase then perhaps it makes sense for you.

 

[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.

 

[38Chevy454]

I assume you have the money to afford the purchase. As stated, what would you rather have more: the painting or the $1400? It is OK to treat yourself and enjoy discretionary spending. Remember that you saved all those years and even now are maintaining your budget, so that you have the money for some extra things. Extra being the painting, travel, going to entertainment show, eating out at nice place, or whatever is out of your normal spending. You can't take the leftover money with you when you die.......

 

[COcheesehead]

If you spend on what you value, it’s always money well spent.

 

[audreyh1]

I assume you have the money to afford the purchase. As stated, what would you rather have more: the painting or the $1400? It is OK to treat yourself and enjoy discretionary spending. Remember that you saved all those years and even now are maintaining your budget, so that you have the money for some extra things. Extra being the painting, travel, going to entertainment show, eating out at nice place, or whatever is out of your normal spending. You can't take the leftover money with you when you die.......

And of course the clincher: If you don’t spend it, somebody else will…..

 

[W2R]

The biggest BTD purchase I ever made, was buying my Dream Home in cash and selling my lesser starter home in cash back in 2015. I knew I would want to do this some day, since I wanted a much nicer home more than anything else on earth (well, other than retiring), so I prepared.

First, I paid off my prior home in 2006 and then saved up a lot of money after that. I did this by continuing to live below my means for years before looking for the Dream Home. Then I retired, then bought my Dream Home, and then even after that I continued to live below my means and added the excess to my savings until I had more than ever, 27 months after buying it.

I think that knowing for sure that this was something I wanted more than anything else in the world, helped to give me the determination to do whatever it would take to get it. And I did. It's MINE and it's paid for and this is a dream come true for me, always will be.

I know that whenever I die (hopefully many, many years from now), I will die happy and at peace here in my Dream Home.

 

[Aerides]

Art I like means it will be in my home for years, and I'll see it every day and it will either make me smile or think or something, with frequency.

One of a kind stuff, a good test (you don't have to do it for real, just play it out in your head if you like). You decide the next day to buy it, and you go back to the store. At first you can't find it again, and you think it must have sold. Do you feel a sense or loss or relief, or, if a mix, which one wins?

If relief, it wasn't meant to be, and you move on.

If loss, call the store right now and have them put it on hold for you.

 

[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]

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]

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.