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Enjoying your money while you're young

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  • Avatar benign_user 
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    Any of you think that you might regret saving too much money now and not being able to do some of those activities when you’re older? An example is a supercar that was brought up in one of the threads or traveling to remote locations. You can enjoy a Ferrari or travel to Antartica now in your 30s and 40s and you probably won’t be able to do that in the 70s.

    #235530 Reply
    Liked by Craigy
    Jarpee Jarpee 
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    My wife and I are 31, we are a lot more liberal with our spending at our ages then most of this forum. We do meet our savings targets and max out Roths, 401k, HSA, s401ks, and contribute monthly to taxable account and 529s but our goal is not FIRE, it’s to enjoy our lives currently as we continue to age. I am a hospitalist so the schedule is conducive to travelling, and we have spent a large amount on travel every year I have been an attending, but we have both agreed this is what we want to do and if we need to work another couple years to enjoy travelling while we are young that is more than worth it. I hate counting my chickens before they hatch, I have no clue what our health will be in 30 years or even if we will be alive. So I agree with you that I would rather spend money on ourselves now on something that is for sure, instead of saving money to hopefully be able to spend it when we retire.

    wonka31 wonka31 
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    Yes, valid concern.

    On the other hand, I don’t think I’d really want to drive a Ferrari in Antarctica. Each to their own, I guess.

    Lordosis Lordosis 
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    Of course balance is needed.
    I do not feel deprived. We live better then average.
    I save 20% and spend the rest. If I do not spend it then I save it when it builds up. We seem to be saving closer to 30-35% with this method.

    “Never let your sense of morals prevent you from doing what is right.”

    #235543 Reply
    White.Beard.Doc White.Beard.Doc 
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    Enjoy life now or save for later…..

    It is always a balance.  When we were younger, we did not deprive ourselves.  But we did save a lot by driving reliable Japanese cars, by taking really nice vacations, but…. we flew economy, and we stayed in medium priced hotels.  We have so many great memories.

    After 3 decades of good income, saving and investing as a highly compensated physician, now we have more than enough.  Also, the kids’ tuition bills are behind us and we have zero debt.  So…. we have his and hers Teslas, we fly all over the world in the front of the plane, and we will probably take 6 to 8 great trips this year.  I do feel a little guilty splurging like we have been, but… we are in excellent health, our net worth continues to grow impressively.  Although my spouse retired early last year, I like my work and am nowhere near psychologically ready to hang up my stethoscope for the last time.  We do plan to visit Antarctica and New Zealand in the near future, and although I have no desire to drive a Ferrari, that new Tesla roadster might just entice me to do something silly.  Time will tell.

    Avatar Infinity 
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    You can enjoy a Ferrari or travel to Antartica now in your 30s and 40s and you probably won’t be able to do that in the 70s.

    Click to expand…

    Yes, absolutely.

    However, I would rather work hard now and save (in 30s-40s).  I may have to enjoy watching Ferrari in the garage or travel to Antartica in a wheel chair in 70s.  But it is much better than enjoy these things now and have to work hard or depending on charity or someone else’s supports in 70s.

    #235550 Reply
    q-school q-school 
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    yes.

    but if you are healthy, you can do quite a lot in late 40s and 50s, so the heavy lifting in your 30s and early 40s can really make the second half of life easier for you.  obviously things can go many ways.  we assume we will be healthy and of sound mind at that point, but that is not guaranteed.  hopefully happily married and kids doing well, but also guaranteed.  it would be great if you knew how much you needed so that you could make more definitive efficient use of resources and optimize happiness.

     

    #235553 Reply
    Avatar Tim 
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    As long as you hit the taxes and retirement savings percentages (20% or plus) there is no reason for any judgement at all. I think what is important is you balance how you wish to spend your “retirement”. Realistically, at 55+ its not like you stop living and enjoying experiences and life. Some choose a different “work” and “work on their own terms”.  Whatever floats your boat! How about a boat and the skills to circle the global? Exotic places and an experience money can’t buy! If the spouse gets sea sick, you might want to rethink that one unless she/he is willing to suck it up and become a sailor.

    My point is “recency bias”. There is an assumption that sooner is better. Not necessarily true.

    #235555 Reply
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    Avatar bean1970 
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    well we are physicians/high income professionals…so even saving 50%..the other 50% is wayyyyyyyyyyyyyyyyyy above what the average American is living on….point being even saving half we are pretty much living high on the hog….   i think most need to realize that you have more money than most people will every fathom to have.

    it took me just over 15 years out of medical school to reach FI. I never felt during that time i was not enjoying myself. Traveled lots, had nice house, nice things..but the savings pays off and now i pretty much live like White.Beard.Doc and i’m not 50 years old yet…almost, but not yet.

    I agree some things you have to do while young. so i’m saving some types of travel (what i call “regular trips”) for my elderly years and knocking out adventurous bucket list stuff now.  But I can only do that because i saved the last 15 years…..

    #235565 Reply
    Avatar benign_user 
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    Yes, valid concern.

    On the other hand, I don’t think I’d really want to drive a Ferrari in Antarctica. Each to their own, I guess.

    Click to expand…

    Now driving a Ferrari in Antartica would be priceless.

    #235566 Reply
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    Avatar afan 
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    We don’t equate enjoying life with spending a lot of money. Most of the things we enjoy are cheap or free. We don’t spend on the things some people like to splurge on. No fancy cars, furs, jewelry, watches, or travel. Reading books, taking walks, time with family are priceless. Not interested in accumulation of a lot of expensive junk.

    MPMD MPMD 
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    This is one of those things that’s nice about being a doc. You can aggressively save and still spend in fairly exorbitant ways.

    My wife and I are not frugal for the most part. We are cautious with things like cars and houses and we got out of non-mortgage debt very quickly. Beyond that we don’t go crazy.

    We have traveled, spent thousands on restaurants, done stuff for other people, have a full time nanny, etc. We are also approaching $1M just in retirement at 38/35. Future is bright.

    To the OPs point I do wish I had indulged myself a bit more my first few years out of residency. I was spending nothing on myself and that wasn’t good. Do I wish I had indulged some hobbies over the last few years and maybe had a slightly lower net worth? Yes I do frankly. It’s a balance and at least on personal spending for myself I was too far on the cheap side. I still agonize over buying anything for myself. I’m talking like a packet of underwear or a new set of jeans. I tend to do stuff like start driving to stores and then just decide not to go in.

    Sorry if some of that sounds contradictory. The bottom line is that we have hit goals, had great experiences, and that I am still learning how to spend on myself.

    Avatar burritos 
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    2004 a few years out of our residency, wife “needed” to get the newly reintroduced 2004 350 nissan z, fully loaded. We had about 50k saved up. I wanted to get our first rental property, she wanted the Z. We ended up going with the Z. We saved and got subsequent properties. Based on our other properties in the same locale, a 180k rental would now be worth about 350k+, plus 70% increase in rent from 2004. Life happened, kids happened, the Z got traded in for a RAV. But in hindsight a rental purchase definitely would have been a better return. The Z did not keep us from saving and it did not make us poor. And even though I may have only driven it 15 times, I’d say it was worth it(because of the enjoyment it brought my wife). Though I did put my foot down on the timeshare consideration.

    CordMcNally CordMcNally 
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    As with all things in life, it’s a balance. I can certainly spend now but I also want to make sure that I’ll have plenty of money later on. I also don’t want to end up being a financial burden on future family.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #235589 Reply
    Avatar wideopenspaces 
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    I’d rather enjoy my time now than when I’m old, not money. So I work less. Everyone has to figure out the balance of making, spending and saving money.

    #235594 Reply

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