The feeling of having money is worth more than what it buys

[freedomatlast]

The guy in the article is described as having "over two million dollars" in savings. No mention of pensions, rental income, social security or if he's even retired. So if he spends 4% per year of his "over two million dollars", he's got $80,000 or $90,000 per year to spend. In most areas of this country that's hardly enough for him to jump on the "hedonic treadmill" mentioned in the article, IMHO.

 

[srblanco7]

I liked this quote “He feels rich because of what he doesn’t owe, doesn’t need, and doesn’t worry about. His wealth isn’t on display. It’s in the absence of financial anxiety — and that absence is worth more to him than any car could be.”

The absence of financial anxiety = freedom

 

[Gallaher]

My Corolla is 2017 ford escape or 2015 Tundra both bought used. But I’m planning on upgrading the escape this year.
Anyway, having money, to me is “stored security”. Sure, I’d like a new car every year but I’m more interested in storing security for a big storm.
In 7 years we’ve been all around this world. Expect to see more.
And expect to continue to store up more security.

 

[EastWest Gal]

I relate to this article. I was recently asked if I anything about which I am anxious or stressed. Well, there are world unrest and world economic issues to be sure, but there is no workplace BS or bullies because there is no workplace, and I have a money cushion that should last. I'm living my best life right now.

When I was a teenager, I decided my career path partly based on wanting financial security as a primary goal. I wasn't wrong. That is one goal, that, when reached, doesn't have you asking, "What's next?" You enjoy reaching that goal. Like losing weight. Once you've reached that goal, you don't keep on going. When a football player gets a touchdown, they don't keep on running. It's the same with weight and financial security. At least for the folks here.

 

[ShokWaveRider]

I relate whole heartedly with the title of this thread.

 

[Flieger]

Of course I don’t plan to spend so much it threatens our financial security. It’s not either or. I think this may be a case where people are trying to make it black and white when it’s actually a continuum. Or trying to conflate two disparate things, Also, people don’t just spend on things. Many people here spend on experiences. Big difference.

I agree with this 100%. My sister and BIL have lived a very frugal life, amassing quite a large sum (more than a few $MM). Sometimes that comes through what is "learned" from parents or life experience, as is the case with my BIL. Both in their upper 60's now I have had conversations with my sister as we have made joint vacations with them. I am amazed at the unwillingness of BIL to loose the tight hold on even a few hundred $'s to make those vacations a little nicer. To me that is coveting money.

I recently sent him a graphic showing life in total. It did seem to hit home a bit, and I am hoping it allows him (and my sister) to enjoy life a little as they have very much earned it. The habits he has learned and lived by are hard to shake though.

And no, this is not about conspicuous consumption or keeping up with the Jones's, it's about enjoying "some" of the fruits of your (his/her) labor. Another tidbit I mentioned to him, and I added the bolded word when providing to him, "If you don't spend (some) of it, your kids will".

Flieger

 

[audreyh1]

This fits for us, but in the last 10 years we have gotten to a point where we can do both - spend a good bit and still have plenty.

Exactly. Knock on wood!

 

[jazz4cash]

The guy in the article is described as having "over two million dollars" in savings. No mention of pensions, rental income, social security or if he's even retired. So if he spends 4% per year of his "over two million dollars", he's got $80,000 or $90,000 per year to spend. In most areas of this country that's hardly enough for him to jump on the "hedonic treadmill" mentioned in the article, IMHO.

Highly unlikely this person doesn’t at least have Soc Sec. They’ve been saving for 25 yrs so maybe still working. We really don’t know. It’s also highly unlikely this person “casually” mentions their savings to a neighbor at a bbq. Good article.

 

[OddGuy]

Highly unlikely this person doesn’t at least have Soc Sec. They’ve been saving for 25 yrs so maybe still working. We really don’t know. It’s also highly unlikely this person “casually” mentions their savings to a neighbor at a bbq. Good article.

Assuming this person even exists, and is not the creation of the journalist designed to illustrate the points of the article. And knowing how difficult it is for a modern journalist to get by financially, the notion of "two million dollars" is likely a king's ransom to them.

 

[Eagle43]

I don’t need to prove anything via conspicuous consumption either and never have. We are private and generally keep a low profile. But I no longer live modestly because we don’t have to plus the clock really is ticking.

Bingo. Low profile keeps us from hostile jerks who would rob or worse. We're just two 83 year old seniors and appear not to have much. Low profile for sure.

 

[Flieger]

Bingo. Low profile keeps us from hostile jerks who would rob or worse. We're just two 83 year old seniors and appear not to have much. Low profile for sure.

I'm hoping that I don't go through life letting that worry drive my decisions...

Flieger

 

[jfn111]

You can’t take it with you, so I don’t really relate.

That's my wife's favorite saying to me.

 

[TripleLindy]

I can relate to the article. We spend plenty, but mostly on experiences, so our spending isn’t overt. We’re still in the same house we raised our family in and drive 25 and 15 year old cars (in phenomenal condition!). There’s comfort in knowing that, outside of a complete financial meltdown, we can weather just about any storm.

 

[old medic]

the notion of "two million dollars" is likely a king's ransom to them.

It is to us... I doubt we will ever see half that. And with that said we are in a financial shape we never dreamed of.

 

[NW-Bound]

"Money is much more exciting than anything it buys." Mignon McLaughlin

 

[scrabbler1]

I agree. When I ERed back in late 2008, even with less than $1M, I felt like I had already won the game. I had financial security PLUS I knew I would never have to work again. And there would be no changes to my everyday lifestyle (other than being able to come and go as I pleased!). And I had bought a new car the year before, one I still own after 19 years. But if ever need to buy new car, I can do it at any time with little effort other than dealing with car salesmen.

 

[MC Rider]

I've done the check to check and shuffling debt thing years ago. Having a good cushion is much much better and less stressful. We took the checkered flag, enough is enough indeed.

 

[Time2]

I've done the check to check and shuffling debt thing years ago. Having a good cushion is much much better and less stressful. We took the checkered flag, enough is enough indeed.

"I've been rich and I've been poor, rich is better." Ashley Montagu.

 

[old medic]

I've done the check to check and shuffling debt thing years ago. Having a good cushion is much much better and less stressful. We took the checkered flag, enough is enough indeed.

Us too and agree... I'm off the track..... DW has 6 laps to go....

 

[VanWinkle]

Fits SO and I to a tee also. We're trying to take more trips and I've been gifting the kids. Still not spending anything from investments.

 

[pb4uski]

My untouched wealth provides me with more satisfaction than spending it does.

Usually.

Hence, your screen name.

 

[isisdave]

Having "enough" to me means not even having to think about security. This is very freeing. DW asks about every other year what our assets are, and forgets in between. We live (now) in a LCOL place, in what we call our "vanilla house," on SS and a small income from renting a commercial property, which mostly pays for our health and LTC insurance. With a 2012 Camry.

I don't think frugality is a "restriction" as someone suggested. It's a philosophy, and a way of planning. It doesn't mean doing without; it means managing your wants and needs, doing research and planning timing. It means shopping at thrift stores for clothes, and particularly after retirement, not having a lot of them. It's even kind of a game or hobby.

We're on a little vacation, and went into an "outlet mall" for the first time in years. These used to be full of stores that sold factory clearances and seconds at prices way below retail. Apparently not any more; these were full of $30 t-shirts, $90 hoodies, and $130 shoes. Back to St. Vinny's for us!

 

[DJRR]

Not a new concept to me. I started out with "bag lady" syndrome. Lots of financial worry.

Then took some 2,000 year old advice:
Keep your lives free from the love of money and be content with what you have, because God has said, “Never will I leave you; never will I forsake you.”

Then created a margin. Margin is the key concept. An athlete earning $10M and spending $11M will have more worry than someone making $50k and spending $40k.

Then the endless debates. I feel more secure with a low interest mortgage and money in investments. Others feel the opposite. If you have the capital buying a Rolex can work out better than buying 100 Timex or buying a Lambo better than a beater.

Now I follow the Costco philosophy. It is never cheap, but always a great value for what you spend. I like the better quality for a reasonable price vs. frugality or "statement" purchases.

 

[Lorenzo]

Clickbait article, in my opinion--in the sense that it gives the impression that some findings of some studies done by some behavioral economists can now conclusively explain the phenomenon. I am not a scientist, but I suspect there is room for plenty of disagreement and nuance that the article does not touch on because it would not be as engaging a read.

I doubt anyone would disagree with the observation: "Here’s what most people don’t understand about savings: they’re not just deferred spending. They’re not money waiting to become something. For people who accumulate substantial savings and choose to live modestly, the savings are the thing. The security itself is the purchase ...." Sure, having a cushion in the bank makes us feel secure. To whom is the article referring by "most people"? I would guess just about everyone on this forum appreciates the psychological benefit of LBYM and did not adopt that lifestyle solely to fund future purchases.

And I think most of us already grasp this next observation in the article: "Buy a new car and you’ll feel great. For about three weeks. Then it’s just your car. Upgrade your house and the thrill lasts a little longer — maybe a few months. Then it’s just where you live. The brain adapts. What was exciting becomes normal. What was a luxury becomes a baseline. And the moment it becomes a baseline, you need the next thing to feel the same high."

The nuance the article doesn't bother to point out is the reality that (most?) people generally do a bit of both. We save for future spending AND we save for the sheer psychological security apart from any thought of future spending. Yawn.

 

[Cassius King]

Great article and read. Thanks for sharing.