Cut-Throat asked that question a few months back and it's stuck in my brain. Then TH raised a similar question on the Humberto Cruz variable-withdrawal thread:
I'm no Mr. Green and I don't think giving money to school administrators is such a hot idea, but I have a tough time adapting to the "variable lifestyle" idea.
It's not that we're "saving for something". We're just not finding anything to spend it on.
It's finally dawned on spouse & me that we're "value spenders". When there aren't any underpriced stocks then value investors aren't buying. When there aren't any bargains, then we're not spending.
Here's one example-- surfboard technology has recently produced a new type of material that's more ding-resistant, more responsive, and lighter. It could probably be used as a hull for the space shuttle and I believe it's priced by the ounce. It makes a great board, but in my case it's pearls before swine. Although it might actually help me LOOK better, I don't think it'll necessarily help me LEARN to surf better. I don't carry that analogy to extremes by surfing koa logs, but I have a reasonably-priced retail longboard that I'm learning to surf reasonably well. When I can rip like any of the guys on my local beach yet still look as smooth as Rabbit Kekai, then I'll see if I'm worthy of a new board.
Another example: our honey-do list includes "fix lanai" and "fix steps". Someday we'll hire a concrete contractor (with a big grout pump!) to resurface our lanai (I'm thinking a nice slate-embossed topcoat) and to level the stone steps. We're not saving the money for this project-- we have it already. We're just keeping an eye on contractors, concrete technology, and timing. We visit homebuilder's shows, we watch HGTV, and we talk to people who have nice lanais. Someday we'll hit the combination of a company/craftsman we trust, a great long-lasting look, and a discount time of the year. Frankly I've been spending too much time surfing to make concrete a priority.
A bad example: Our kid has a Crest spinbrush (battery-powered rotary toothbrush) that eventually grounds out when it gets wet (great design). Other electric toothbrushes have timers that my kid claims don't have a manual shutoff, so they can't be used with braces. (I don't think that's correct, but I've learned to choose my battles with claims like this.) Apparently the only suitable brush is something called a SonicCare (I'm mangling the brand name) that "retails" for $110.
As my spouse was choking over the idea of a $110 toothbrush, the kid pointed out "My braces cost $600 less than Michelle's & Erin's, and their Sonic brushes were given to them for free by their orthodontists, so even after we buy one of them we'll still be $490 ahead!"
Impeccable logic. She displays financial skills worthy of supportive nurturing. And we do have the $110 in "discretionary" savings. But this proposition has zero value! I absolutely refuse to spend $110 for ONE toothbrush when I can burn out 15 Crests and STILL be ahead.
What else would we do with the money? Diving Palau? Well, yeah, we'll probably get to that someday, but we're not exactly diving our assets off at any of our favorite local spots right now. New cars? No perceived value above our current vehicles. Another 2 KW of solar PV panels? Sure, but worldwide demand is crazy now and another year or two of prospecting might save 50 or 60 cents on the dollar. (Besides I'm too busy surfing to spend a lot of time on it.) Buy a pair of $125 sneakers for our kid, or a car for her 16th birthday, pay for any college of her choice, or leave her a six-figure inheritance? You gotta be kidding!
One brainstorm was that I'd probably stop flying coach and fly first class. Three problems-- I'll never do this with our kid because I think it sets an unacceptably high standard to which she'll rapidly become accustomed. (Why torment her!) Second, if it's not fair to the kid then I wouldn't "cheat" by doing it when (if) I travel alone. And third, I remember how I used to live on a submarine, which makes flying coach seem like a BB pellet in a racquetball court. I'd rather spend the money on something with more value. And someday I'll figure out what that is!
We have implemented one manini idea. When I was at a training command I probably spent three quarters of my time inspiring students grubbing for budget money under sofa cushions. Whenever I stole found funding we'd spend it on cheap projects that came from the instructors, not on the administration's lofty program ideals. The idea eventually caught on that if you had a good idea that needed seed money, then Nords would eventually find a way to make it happen. Life became very good in that atmosphere of uninhibited creativity, and we scattered around plenty of awards & promotions.
So to honor that money-grubbing spirit, we keep an eye on our kid's teachers. Every year or so we find one that really impresses us with their creativity, their inspiration, or their plain good old-fashioned teaching ability. (The more our kid complains about certain teachers, the better they probably are.) When we find a good one then at the end of the school year (after our kid will no longer have that teacher again) we give them $100 cash in an envelope and tell them it's theirs to spend however they want. No strings attached, no accounting required, spend it at the spa if you think you deserve it-- you've earned it.
Any other value-spending ideas?
I think it's the middle ground. Although for us it's probably more like the low ground.Notth said:
I'm no Mr. Green and I don't think giving money to school administrators is such a hot idea, but I have a tough time adapting to the "variable lifestyle" idea.
It's not that we're "saving for something". We're just not finding anything to spend it on.
It's finally dawned on spouse & me that we're "value spenders". When there aren't any underpriced stocks then value investors aren't buying. When there aren't any bargains, then we're not spending.
Here's one example-- surfboard technology has recently produced a new type of material that's more ding-resistant, more responsive, and lighter. It could probably be used as a hull for the space shuttle and I believe it's priced by the ounce. It makes a great board, but in my case it's pearls before swine. Although it might actually help me LOOK better, I don't think it'll necessarily help me LEARN to surf better. I don't carry that analogy to extremes by surfing koa logs, but I have a reasonably-priced retail longboard that I'm learning to surf reasonably well. When I can rip like any of the guys on my local beach yet still look as smooth as Rabbit Kekai, then I'll see if I'm worthy of a new board.
Another example: our honey-do list includes "fix lanai" and "fix steps". Someday we'll hire a concrete contractor (with a big grout pump!) to resurface our lanai (I'm thinking a nice slate-embossed topcoat) and to level the stone steps. We're not saving the money for this project-- we have it already. We're just keeping an eye on contractors, concrete technology, and timing. We visit homebuilder's shows, we watch HGTV, and we talk to people who have nice lanais. Someday we'll hit the combination of a company/craftsman we trust, a great long-lasting look, and a discount time of the year. Frankly I've been spending too much time surfing to make concrete a priority.
A bad example: Our kid has a Crest spinbrush (battery-powered rotary toothbrush) that eventually grounds out when it gets wet (great design). Other electric toothbrushes have timers that my kid claims don't have a manual shutoff, so they can't be used with braces. (I don't think that's correct, but I've learned to choose my battles with claims like this.) Apparently the only suitable brush is something called a SonicCare (I'm mangling the brand name) that "retails" for $110.
As my spouse was choking over the idea of a $110 toothbrush, the kid pointed out "My braces cost $600 less than Michelle's & Erin's, and their Sonic brushes were given to them for free by their orthodontists, so even after we buy one of them we'll still be $490 ahead!"
Impeccable logic. She displays financial skills worthy of supportive nurturing. And we do have the $110 in "discretionary" savings. But this proposition has zero value! I absolutely refuse to spend $110 for ONE toothbrush when I can burn out 15 Crests and STILL be ahead.
What else would we do with the money? Diving Palau? Well, yeah, we'll probably get to that someday, but we're not exactly diving our assets off at any of our favorite local spots right now. New cars? No perceived value above our current vehicles. Another 2 KW of solar PV panels? Sure, but worldwide demand is crazy now and another year or two of prospecting might save 50 or 60 cents on the dollar. (Besides I'm too busy surfing to spend a lot of time on it.) Buy a pair of $125 sneakers for our kid, or a car for her 16th birthday, pay for any college of her choice, or leave her a six-figure inheritance? You gotta be kidding!
One brainstorm was that I'd probably stop flying coach and fly first class. Three problems-- I'll never do this with our kid because I think it sets an unacceptably high standard to which she'll rapidly become accustomed. (Why torment her!) Second, if it's not fair to the kid then I wouldn't "cheat" by doing it when (if) I travel alone. And third, I remember how I used to live on a submarine, which makes flying coach seem like a BB pellet in a racquetball court. I'd rather spend the money on something with more value. And someday I'll figure out what that is!
We have implemented one manini idea. When I was at a training command I probably spent three quarters of my time inspiring students grubbing for budget money under sofa cushions. Whenever I stole found funding we'd spend it on cheap projects that came from the instructors, not on the administration's lofty program ideals. The idea eventually caught on that if you had a good idea that needed seed money, then Nords would eventually find a way to make it happen. Life became very good in that atmosphere of uninhibited creativity, and we scattered around plenty of awards & promotions.
So to honor that money-grubbing spirit, we keep an eye on our kid's teachers. Every year or so we find one that really impresses us with their creativity, their inspiration, or their plain good old-fashioned teaching ability. (The more our kid complains about certain teachers, the better they probably are.) When we find a good one then at the end of the school year (after our kid will no longer have that teacher again) we give them $100 cash in an envelope and tell them it's theirs to spend however they want. No strings attached, no accounting required, spend it at the spa if you think you deserve it-- you've earned it.
Any other value-spending ideas?
![:-\](https://www.early-retirement.org/sk/forums/images/smilies/undecided.gif "Undecided :-\")
I suspect a lot of folks out there do ride the waves. Live it up while the money's coming in; crash and burn when the layoff hits, or take the $$ out of the house and keep on.
