Live data from Hacker News

The art and science of spending money

collabfund.com

111–120 of 140 posts

Re: The art and science of spending money

#111

Earlier quoted context omitted.

There can be many goals for saving. It is easy to imagine parents that want to save as much as possible for their kids, for example.

Why would a kid need "saving as much as possible", did you ask them? What if they need the money before your death?

To help them go to extra curricular classes they enjoy, university, study or live abroad, buy a house …

My original point was about saving not having a single reason, but varied ones. Maybe not "as much as possible" but enough to provide for any of the things above for one‘s kids.

Re: The art and science of spending money

#112
It's very much good advise to optimize spending by not spending where it's useless (no utility, social signaling) and to possibly increase spending where the happiness return is high.

For the people that are frugal for life to the point where it comes at the expense of quality of life, one relief is the tactic "spend to save". Lower your TCO by spending. Pay down loans and the mortgage. Make your home more energy efficient. Replace crappy products with things that last a long time.

It's an undervalued strategy. Extreme savers basically prepare for volatility. They have insecurities about the future. Lowering your future expenses reduces volatility and increases freedom at a later age. You're less affected when bad things happen. You can scale down work by working less hours or a simpler job.

This is one way to not end up as the richest person in the graveyard and it allows you to gradually retire.

That aside, one aspect the article did not address are family dynamics. I do not care about what car my neighbor drives or what he thinks about my car. Yet still one can be affected by "social wealth" within the context of a family.

One may be frugal whilst the other is not. You can guess who wins. The kids need Disney+ and somewhat later a smartphone, as you don't want them to be outcasts.

Society does have (subtle) ways to force you to spend, it's not necessarily flexing or one-upping, rather "fitting in".

Re: The art and science of spending money

#113
My idea is to spend as an average person would.

I increase my lifestyle only spending interests from bonds/dividends. In this way I have a better life as my net worth increase but not at the same rate.

So if the risk free interest rate is 5%, I don’t only increase my lifestyle of 1$/y for every 20$ earned.

Re: The art and science of spending money

#114
Rich people always love to say $3 questions don't matter.

But avoiding a latte is how you save a few hundred dollars a year, instead of not being able to save at all. It won't buy you a house, but it will certainly let you hire a Lyft if you have to come in at some crazy time, and you might save your job because of it.

Re: The art and science of spending money

#115

> Frugality inertia: a lifetime of good savings habits can’t be transitioned to a spending phase. Coming from a poor family and knowing the hard way the issues of not having money I've been obsessed with saving money since I got my first paycheck 8 years ago and I always thought "at the point I would earn current salary + x I will start enjoying life more and stop worrying about money" but that never happened. 8 year…

Similar. I left home at 15 made my own way. I saved 95% of what I made - drank powdered milk, worked 7 days a week for 15 years multiple jobs, side jobs (flip houses, production company). But I set a goal so, unlike my grandmother, who never stopped fearing the return of the Great Depression, I could stop. I retired in my mid-thirties and now I study languages and write and travel, but I don't buy stuff. Maybe if you…

Do you feel satisfied in that series of decisions? This was something I started doing in my twenties, but am glad it didn't continue, despite having some major financial difficulties now (though I don't have much control over that anyway). Do you feel like your travel experiences offer you more substance than any possessions would, and do you feel like language learning is a fruitful use of time?

Re: The art and science of spending money

#116

Earlier quoted context omitted.

You made an unconvincing point by reducing money to stereotypical 'expensive cars' . What about going on ski trip while your kids are still young and having a magical and memorable moments in life.

> What about going on ski trip while your kids are still young and having a magical and memorable moments in life. For trips, talk to friends from any background about their cherished memorable trips from their childhood and try to repeat what worked. Figure out what caused those childhood trips to be memorable. It is rarely expense from what I can tell. Expensive trips are often social status signalling. Kids don’t…

> Expensive trips are often social status signalling.

I would love to go to so nice destination with magical mountains in colorado than my local hill in wisconsin. I don't care about posting in on facebook or whatever.

Memories are not just for kids though. I would argue they are more for adults.

Sure there are yogis in Himalayas that perfectly content( or atleast pretend to) with no money.

Re: The art and science of spending money

#117

Earlier quoted context omitted.

Check in with your kids about this. I'd rather my parents spend what they have saved. I don't need or really even want them to pass anything on to me. I'd much rather they enjoy their retirement more, pay for more visits to their grandchildren, and have lots of interesting stories and about what they've been doing to tell them.

If we knew when we’d die and how much care would cost from 80 until death, that would be easy. It’s unknowable and my wife’s family has exceptional longevity in most of her genetics. She could realistically blow out a Roman numeral C candle on a cake. Or she could die at 75… One set of my grandparents passed quickly in their 60s; the other in their 90s (with over a decade of independent then assisted living then year…

Yes but you have to choose a philosophy either way. I'm saying the philosophy of "we want to leave our kids money" should be run by those actually kids before it is pursued. In my experience most adult children don't want their parents to focus on leaving them anything.

Re: The art and science of spending money

#118
post #103

Earlier quoted context omitted.

> I'm collecting a ton of money now that I don't know what to do with. Why not increase your desires.

Time is limited. Doing too much detracts from what I do want to do.

Ah yea if you found your purpose in life that doesn't need money that is just nirvana.

Re: The art and science of spending money

#119

> The more you were snubbed while poor, the more you enjoy displaying your wealth. Man I dunno about this. It does seem like a thing for certain personality types, but I usually see exactly the opposite. All of the people I know who have "made it" from a less wealthy background are the opposite, living with a ton of guilt about their new wealth. I think this is because of having tons of family and friends still scrap…

This is something that is valid more for societies like US, where being rich is seen as proof of 'hard work' and 'making it'. It defines your social status and actual social worth, therefore not being rich is like a stain. Its even built-into the terms used for describing it - someone's 'net worth'. As if a human being can be qualified by the amount of imaginary numbers attached to his or her social identity. So beco…

I live in the US, and as I said, this is not my experience at all.

Re: The art and science of spending money

#120

Earlier quoted context omitted.

If we knew when we’d die and how much care would cost from 80 until death, that would be easy. It’s unknowable and my wife’s family has exceptional longevity in most of her genetics. She could realistically blow out a Roman numeral C candle on a cake. Or she could die at 75… One set of my grandparents passed quickly in their 60s; the other in their 90s (with over a decade of independent then assisted living then year…

Yes but you have to choose a philosophy either way. I'm saying the philosophy of "we want to leave our kids money" should be run by those actually kids before it is pursued. In my experience most adult children don't want their parents to focus on leaving them anything.

The chosen philosophy is “we don’t want to run out of money before we run out of heartbeats”.

Having money left over is a by-product of that, not a primary goal. If the kids don’t want the money in the end, they’ll figure out some way to dispose of it I’m sure.

Post reply on HN