I May Have Lost My Mind

[MercyMe]

My spouse and I have not been spending money for the last three or four years. In fact, total expenses combined for the last three years were a bit less than our total spending just in 2018.

With one or two exceptions, we have always been frugal and we've both come to feel like today's inflation is mostly because of excessive corporate profit motives and less because of supply chain issues. That idea gives us a tiny bit of satisfaction in not spending money. We feel like we're not feeding the greed machine. We do still donate a good portion of our income to our church and two charities.

It would be foolish for either of us to think we alone could thwart the direction of inflation with our own spending habits. Nor do we think the corporations are wondering why the two of us aren't spending as much as we could. But we got to thinking that by saving money now and keeping it wisely invested, that we are setting ourselves up to be able to spend more later... (here comes the insanity)... when the price of things isn't so high.

I hope that is not too laughable, but even I chuckle a bit at the thought.

Here is an example. We haven't been on a vacation for four or five years. It's just so crazy expensive to fly and stay anywhere that we would like to visit. My unspoken thought is "Let the uber-wealthy spend down their fortunes and when that world runs out of money and prices come down, we'll be able to take a nice trip."

So we don't take vacations, the money stays invested, and perhaps one day travel will become affordable again. Then we'll be able to take a nice vacation or two each year. This implies deflation and that seems so unlikely. It would probably take one heck of a recession for prices to lower, and if that doesn't happen then we may never travel again, ever.

Do you ever feel that spending money contributes to inflation? It's been said that every dollar is like a vote. I don't want to vote for the price of things to keep going up.

Now, please take it easy on me. I know this is all a bit ludicrous.

 

[erkevin]

I certainly don't know your overall fiscal picture, but if you are not spending/traveling because you feel it is too expensive (but you could afford it).........GO NOW. None of us have any idea what the future holds, including our health. In a few years you may not be able to travel. Regret is the worst.

 

[Aerides]

So we don't take vacations, the money stays invested, and perhaps one day travel will become affordable again. Then we'll be able to take a nice vacation or two each year. This implies deflation and that seems so unlikely. It would probably take one heck of a recession for prices to lower, and if that doesn't happen then we may never travel again, ever.

If you WANT to travel but are holding back just because of the prices, that seems a shame. I retired to have the freedom of my (hopefully) young and healthy years to do what I want, which includes travel. It includes indulgences. I would be sad if I had retired and felt I should not continue those because of a couple of years of bad inflation (even though they came after many more years of lower inflation, and great market returns).

Do I absolutely hate that one of the places I go to every year now charges more than double per night vs. the average from 2017-19? Yup I sure do. Do I go anyway because it is one of my favorite weeks every single year? Yup I sure do.

So, if you don't really mind not travelling, and won't really mind if it never returns to a price you can enjoy, or doesn't come back to earth before you are too old or too unhealthy to go, it's totally up to you.

 

[audreyh1]

The problem with inflation is prices keep rising no matter what you do, and so waiting just makes it worse. Waiting for some kind of collapse - you don’t know if it will happen in time or if the uber rich will ever run out of spending money (not likely).

 

[38Chevy454]

Don't be the person lying in a hospital bed and wishing they had done something they could have, but didn't.

Unless there is deflation, prices will not go down. Also waiting may become never if you have a health issue. Go now!

 

[Gremlin]

Interesting. I’m feeling the opposite urge which is to do everything NOW before it gets more expensive lol. I don’t hold out much hope that it’ll get cheaper.

 

[Qs Laptop]

Do you ever feel that spending money contributes to inflation?

Nope. That's not how inflation works for most things, except for hot trending fad items (think Beanie Babies, or other collectibles.) It's usually a shortage of inventory, and therefore demand for an item, that creates inflation.

It's been said that every dollar is like a vote. I don't want to vote for the price of things to keep going up.

So we don't take vacations...

I totally understand the reluctance to spend money on vacations when the prices are sky-high. I was looking at scouting out Boise, ID area for the purposes of evaluating it as a place to relocate. Imagine my shock when I saw round trip prices started at $895 and went up from there (flying from Minneapolis.) I went 4, 6, 8 weeks into the future for flight dates and the price did not come down.

However, I could go to Kansas City for $89 roundtrip. I could go to Phoenix for $395 roundtrip. Air fare changes quite a bit, depending on the time of year and destination. There are airfare sales all the time, you just have to look for them.

Perhaps you could choose a vacation site that isn't so expensive? Don't deny yourself the pleasure of travel, especially if you have the money.

 

[athena53]

It's a matter of being mindful and spending on what matters to you. I'd love to visit Australia and NZ but I won't fly Coach and Business Class fares are insane. Yeah, I have the money but I can do an entire trip somewhere in Europe or South America for what the Business Class airfare costs to Australia and NZ. Not gonna happen, not gonna wait for bargains. I'm 70 and am now being slowed down somewhat by mitral valve prolapse- how much time do I have?

OTOH, I have little need to spend money on "fine dining", designer handbags, etc. so I don't. I've started using Airbnbs where hotels are getting crazy-expensive. Like you, I donate generously to church and to charities.

Not sure how old you are but you may want to travel sooner rather than "someday". Don't postpone joy, especially if you can afford it.

 

[audreyh1]

Travel is one of those things where there are lots and lots of opportunities to economize.

 

[jollystomper]

Here is an example. We haven't been on a vacation for four or five years. It's just so crazy expensive to fly and stay anywhere that we would like to visit. My unspoken thought is "Let the uber-wealthy spend down their fortunes and when that world runs out of money and prices come down, we'll be able to take a nice trip."

When you say "crazy expensive", what is the target amount you expect, or want, a vacation to cost?

 

[Sunset]

OP - Based on your post as I read it, go on vacation NOW.

While you wait, you age, things happen like accidents and disease, all will prevent you from traveling later.

Look how Covid killed travel, Countries closed their borders, it could happen again where travel becomes impossible.

In my few travels, I have seen very few 80 yr olds, rare 90 year olds and nobody over 100.

If you are worried about spending too much , pick 10 places, then look at prices for all 10 repeatedly and when one becomes a "deal" grab it.

 

[Koolau]

I don't think you sound insane but I don't think prices will be coming down. Inflation may stabilize, but stabilize at higher prices than when inflation took off. While some prices (food and gasoline, etc.) will go down, they'll also go back up. There are normal fluctuations in such prices.

It's true that your dollars continue to grow when they are invested, but each of those dollars become less valuable the longer you wait to spend them. It's a somewhat delicate balance about such things, and none of us is getting younger. Only you can decide when to spend, but my thinking is not to wait too long. If you want to do something, don't try to out wait inflation. I don't think you can do that but I've been wrong before (just ask DW) so YMMV.

 

[madatrub]

Prices arent coming down. There's no better time than the present.

 

[GenXguy]

I don't think you sound insane but I don't think prices will be coming down. Inflation may stabilize, but stabilize at higher prices than when inflation took off. While some prices (food and gasoline, etc.) will go down, they'll also go back up. There are normal fluctuations in such prices.

Stabilizing inflation doesn't mean stabilizing prices, though. So if inflation stabilized at the target of 2%, prices would still be going up 2% (probably more in reality vs. the gubment figures).

So far, everything including food and gas is a lot higher than I was paying at the beginning of the pandemic in early 2020.

 

[MichaelB]

I don't think you sound insane but I don't think prices will be coming down. Inflation may stabilize, but stabilize at higher prices than when inflation took off. While some prices (food and gasoline, etc.) will go down, they'll also go back up. There are normal fluctuations in such prices.

Prices are probably not coming down, but if there were a recession, discretionary spending would contract and that could cause prices of discretionary goods and services to fall. I’m not suggesting this will happen, but it’s a possibility.

 

[Phroig]

Pick and choose your splurges. For us, travel is about the only one. If something is special for you and requires physical effort (most travel), do it now rather than put it off.

 

[Koolau]

Prices are probably not coming down, but if there were a recession, discretionary spending would contract and that could cause prices of discretionary goods and services to fall. I’m not suggesting this will happen, but it’s a possibility.

Sounds like no good news. Darned if we do and darned if we don't. What else is new.

 

[Calico]

<snip>So we don't take vacations, the money stays invested, and perhaps one day travel will become affordable again. Then we'll be able to take a nice vacation or two each year. This implies deflation and that seems so unlikely. It would probably take one heck of a recession for prices to lower, and if that doesn't happen then we may never travel again, ever. <snip>

Tomorrow isn't promised to anyone.

How do you know you will still be alive "then?"

How do you know you will be healthy enough to travel "then?"

Sorry to be so blunt, but you cannot take tomorrow for granted. I used to assume I would be here, and healthy, for decades to come.

Then in 2018, I was diagnosed with cancer. Thankfully, it was caught early, treated, and I am now 5 years cancer free (this month). There is every reason to think I will be around for decades.

I no longer look upon "tomorrow" or "some day" the same way I used to. I think it will come; I hope it will come; I hope I will be here to enjoy it. But nothing is guaranteed.

I also agree with those posting that prices in general are not going to come down. If you truly want to travel, and have the money, and will regret it if you don't go, then go.

Life has a funny way of throwing curve balls you don't expect. Within reason, make the most of today. It's the only day you really have when you come right down to it.

 

[COcheesehead]

Control what you can control - live life while you can.

 

[unclemick]

Hmm - 1993 age 50 net worth 250k all time el cheapo low 12k one years expenses - never to be repeated but cheap in early years. 2023 age 80 net worth much more.

Still fairly healthy but may run out of body(er time) before $.

Heh heh heh - advice?? None. Do what you find interesting.

 

[Ronstar]

If you don’t spend your money, someone else will.

 

[Aerides]

Prices are probably not coming down, but if there were a recession, discretionary spending would contract and that could cause prices of discretionary goods and services to fall. I’m not suggesting this will happen, but it’s a possibility.

Prices like Hotels and Airfare do seem to swing quite wildly, and aren't as tied to inflation as directly, but pure consumer demand.

If that pricey hotel sees it's become half empty, they lower their rates. I play this game with every hotel I book. I rebook and rebook in the weeks leading up to my stay often saving hundreds. Airfare fluctuates as well.

Both of these are now red hot in most attractive markets, so they might fall, but not much and not if demand doesn't fall first.

 

[Chuckanut]

Do stay home. That will make things less crowded and cheaper for me.

On a recent road trip I had 40% of my rooms for free. And half of those free rooms included a hot breakfast with the room. Lunch was 80% picnics. Dinner was in diners or take out brought to the room. Dessert and wine/beer were brought from home.

 

[COcheesehead]

if you don’t spend your money, someone else will.

omg! +100000000000000

 

[Koolau]

Hmm - 1993 age 50 net worth 250k all time el cheapo low 12k one years expenses - never to be repeated but cheap in early years. 2023 age 80 net worth much more.

Still fairly healthy but may run out of body(er time) before $.

Heh heh heh - advice?? None. Do what you find interesting.

Always good to hear from unclemick - one of my FIRE heroes.