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

[pjigar]

Guilty as charged. But then again I grew up with no resources until I got a good job after I finished MS. The pain of no resources was too great for me rather than any joy I may get spending resources. To each of their own.

 

[Keim]

Quick note to those saying $2m isnt very much money: You are right.

But...

It is more money than over 90 percent of Americans.

So...

You are also wrong.

 

[Mark2024]

Quick note to those saying $2m isnt very much money: You are right.

But...

It is more money than over 90 percent of Americans.

So...

You are also wrong.

It is all relative. When you have 2 millions, you will not live in a neighborhood where the average income is 50K a year. Your coworkers and people you talk to would more than likely have about 2 millions. That would appear that 2 millions is not hard to save, because all people you know have that much.

 

[FREE866]

Enjoying this thread. I totally agree with the psychological comfort of "having enough". I buy what I want, but I simply don't want a lot. I like a simple life.

 

[Pointby2]

My random thoughts:

• Some people will never get beyond being frugal, this article is for them.
• If being frugal brings you joy, then who are we to judge?
• Once you've built up that nice financial safety cushion, why keep building? It's not a contest.
• Almost everyone on this forum can relate to that article. Savers and spenders.

 

[Keim]

It is all relative. When you have 2 millions, you will not live in a neighborhood where the average income is 50K a year. Your coworkers and people you talk to would more than likely have about 2 millions. That would appear that 2 millions is not hard to save, because all people you know have that much.

It may feel all relative-cuz you are correct about like hanging with like-but that doesn't mean it actually IS all relative.

 

[jollystomper]

We are fortunate to have friends and relatives from a wide spectrum of wealth. $2 million is a lot of money, no matter how one slices it . Those we know with 9 digit net worth figures are not the type who think that $2 million dollars is not much (maybe because they are very comfortable but choose not to live a "9 figure" lifestyle).

I started reading the article - funny, I have a 2011 Camry with faded paint and dents on the bumper. But it is not me, trust me. I do not talk about what I have where people can identify me .

Kidding aside, I thought about the line "He’d figured out that the feeling of having money is worth more than the feeling of spending it". I did not get much beyond that, because my view is more "he is content with what he has" - though it does seem to me like bragging to mention that in social conversation.

Once one deems one "has enough", in my view it is a pleasant balance. You have choices - to spend a lot (BTD), spend little (frugal), spend nothing (cheap), or spend just right (which you are free to define how you want ). For us, the key is just having choices. That brings a lot of piece of mind, especially when you have to spend money on something "unexpected" (like a sudden plumbing repair) and realize that having to spend on the "unexpected"really does not impact what you choose to spend on.

Now, as for my 2011 Camry... over the last month I was thinking about replacing it. Now that I see it mentioned in this article, I may have to accelerate that choice, lest folks think the article is about me .

 

[socca]

Every discretionary purchase I can make right now results in a short-term reduction in my quality of life. Some examples:
• fancy bling - never been interested
• exotic car - not my thing
• exotic travel - hassle getting there and back
• house reno - dealing with contractors
• move into a mansion / estate - more cr*p to take care of
• bespoke “investments” exclusively for HNW folks - complexity, risk, scams, etc.

Am I really currently living in the best of all possible worlds? Wasn’t I raised to believe that more is always better?

My challenge now is figuring out how much of my monetary resources are truly “extra” and should be given away (and to who). I’m not in any rush to answer this question - I don’t really own anything until the IRS says I do.

 

[ncbill]

I grew up with adults, some of whom did very well income-wise, spending everything they earned.

Lots of wailing and gnashing of teeth if their cash-flow hit a snag.

I choose to remain a whole lot more frugal than they were so I can SWAN.

 

[1242Vintage]

Money provides us … and most of you on this site … the peace of mind knowing that whatever happens (auto repair, leaky roof, AC replacement, etc) we have the resources to address it. And this extends to our kids.

Youngest was recently involved in an auto crash in a far away city. She was shaken up and needed her Mom. Not daughter’s fault and no significant injuries. I immediately got on the phone to airline to buy a ticket while wife packed her bags. Only seat on the next flight to get wife there was first class. Bought it and was grateful to get it. A few days later wife and daughter went car shopping. We bought her a replacement.

When wife flew home after a few days of mother-daughter time, it was like the crash never happened!

We found out much later the crash was insurance fraud and the other party was prosecuted! Justice prevailed.

 

[Stormy Kromer]

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

That is great.

 

[MC Rider]

It is all relative. When you have 2 millions, you will not live in a neighborhood where the average income is 50K a year. Your coworkers and people you talk to would more than likely have about 2 millions. That would appear that 2 millions is not hard to save, because all people you know have that much.

Those folks are living in a bubble. A comfy one no doubt, but still.

 

[audreyh1]

Money provides us … and most of you on this site … the peace of mind knowing that whatever happens (auto repair, leaky roof, AC replacement, etc) we have the resources to address it. And this extends to our kids.

Youngest was recently involved in an auto crash in a far away city. She was shaken up and needed her Mom. Not daughter’s fault and no significant injuries. I immediately got on the phone to airline to buy a ticket while wife packed her bags. Only seat on the next flight to get wife there was first class. Bought it and was grateful to get it. A few days later wife and daughter went car shopping. We bought her a replacement.

When wife flew home after a few days of mother-daughter time, it was like the crash never happened!

We found out much later the crash was insurance fraud and the other party was prosecuted! Justice prevailed.

In that case - did the fault get assigned to the fraudulent party and did insurance help out?

 

[dobig]

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

When you grew up without any this is even more true.

 

[dobig]

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.

Hear, hear!

Reminds me of one of my favorite quotes.

• "I’ve got something he can never have—the knowledge that I’ve got enough." — Joseph Heller (when told a billionaire made more in a day than he did in a lifetime)

 

[dobig]

It is all relative. When you have 2 millions, you will not live in a neighborhood where the average income is 50K a year. Your coworkers and people you talk to would more than likely have about 2 millions. That would appear that 2 millions is not hard to save, because all people you know have that much.

Probably as a general rule but I doubt the average income within 3 miles of us is anywhere close to $50k. Rural Pa.

 

[CalBird]

You want to have the money to give you the sense of security and peace of mind. You also want to live a full life to spend it.

 

[Digger1000]

This article fits me to a T.

 

[1242Vintage]

In that case - did the fault get assigned to the fraudulent party and did insurance help out?

Fault was assigned to the fraudulent party.

He took out insurance when he rented the car from Hertz. After the collision he gave daughter the insurance policy for his personal vehicle, not the Hertz rental agreement noting the rental car
insurance. I worked through his insurance agent who then worked with the insurance program at Hertz.

His agent was extremely helpful in resolving. Talked with her several times. I think … after seeing the dashcam video and reports that I supplied they just wanted this bizarre incident caused by their insured to settle and go away.

 

[Flieger]

Quick note to those saying $2m isnt very much money: You are right.

But...

It is more money than over 90 percent of Americans.

So...

You are also wrong.

If I had $2MM, I would not have started the thread I started on My SS Decision....

Flieger

 

[Lorenzo]

You want to have the money to give you the sense of security and peace of mind. You also want to live a full life to spend it.

I agree.

The article almost completely ignores the living a full life to spend it aspect, in my opinion. “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.” Hyperbole! The absence of financial anxiety may be worth more than a car until the moment his old clunker dies unexpectedly and leaves him stranded in the middle of nowhere. Frugality is wonderful and can enable that freedom from financial anxiety, but excessive frugality has its own pitfalls. Sometimes, such as in the example of having a reliable car, one may exchange some financial cushion for another source of a sense of security, peace of mind, or other comfort. The article mentions the spending spiral, where one can get into such a habit of spending that they continually chase contentment without ever being able to reach it, but that is the extreme. Without having to get anywhere near that extreme, one can enjoy the absence of financial anxiety while spending sensibly to avoid other anxieties.

 

[Diogenes]

It is all relative. When you have 2 millions, you will not live in a neighborhood where the average income is 50K a year. Your coworkers and people you talk to would more than likely have about 2 millions. That would appear that 2 millions is not hard to save, because all people you know have that much.

Expectations are indeed relative, but I'm not sure about your conclusions. One might have substantially more than $2M, perhaps more than $20M, but live in a neighborhood mired in poverty. One might dress, drive vehicles, and make purchases at deep-discount, appearing quite impecunious. One might have a circle of friends, to the extent that one has any friends, who are struggling financially.

Not mentioning any dollar-figures personally, but my social circle consists mainly of people whose material circumstances are dicey. My more middle-class acquaintances think that I'm impoverished, regarding me with mix of pity and condescension. There's no one "in real life" with whom to sincerely discuss financial matters. I don't mean a locker-room comparison of who has more, but rather, things that matter to investors but not particularly to consumers. For instance, in our current geopolitical situation, there's worry about the price of gas. I'm more worried that the dollar is rising too much; that decreases the value of my ex-US stocks. Inflation, in the conventional sense, is meaningless to me. With whom to level on that topic, in real life?

 

[pacergal]

I relate to the article and much what folks have said.
We don't have millions saved, but do have a pension. It allows us to live the same lifestyle as when we were working, plus more travel and the ability to give to our kids now.
We have enough, and feel comfortable that we can weather aging OK, even if one of us needed nursing home end of life care for a few years. Barring a serious long term illness in both of us at the same time, that might stretch things, but we do have the house we can sell if needed.
We hope to leave a legacy to our kids, that is importance to us.

 

[dobig]

Expectations are indeed relative, but I'm not sure about your conclusions. One might have substantially more than $2M, perhaps more than $20M, but live in a neighborhood mired in poverty. One might dress, drive vehicles, and make purchases at deep-discount, appearing quite impecunious. One might have a circle of friends, to the extent that one has any friends, who are struggling financially.

Not mentioning any dollar-figures personally, but my social circle consists mainly of people whose material circumstances are dicey. My more middle-class acquaintances think that I'm impoverished, regarding me with mix of pity and condescension. There's no one "in real life" with whom to sincerely discuss financial matters. I don't mean a locker-room comparison of who has more, but rather, things that matter to investors but not particularly to consumers. For instance, in our current geopolitical situation, there's worry about the price of gas. I'm more worried that the dollar is rising too much; that decreases the value of my ex-US stocks. Inflation, in the conventional sense, is meaningless to me. With whom to level on that topic, in real life?

It would be nice to have a neighbor such as yourself to discuss such things. Unfortunately around my parts the highest level of discussion will be how many parts of lime and fertilizer to put on the fields this spring. I just nod like it means something to me.

 

[CO-guy]

We live below our means because my consulting business grew unexpectedly into our primary income stream, all while I continued to grind away at my career for another six years. In addition, we live below our means because, even after I hit FI and quit my career, my former employer asked me to stay on at half-time for another year. And then again this past year as a consultant.

I'm on track with winding down my consulting business, but our account balances keep growing, well ahead of our original FI projections. It's always possible to hemorrhage money in some "Brewster's Millions" situation, so I guess we're just not creative enough to BTD any more than we're already doing.