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The art and science of spending money

collabfund.com

31–40 of 140 posts

Re: The art and science of spending money

#31
Just finished living with a financial and emotional hoarder.

When a person groans about spending $1,000 on high quality Michelin AS4 tires for an appropriate car, they are being obstinate. Money is to purchase things for life, not the purpose in life. It doesn't take a lot if one sets expectations and standard of living appropriately.

Personally I've learned the corporate rat race is really detrimental to my handicap so I'm going to file for disability and continue to participate in society with my arts and letters. It's not quite UBI but it's close enough for my purposes. I grew up in a wealthy household - again, came up poor and seem obsessed with "investments" and "security" instead of enjoying the food and experiences those monies can buy - so I'm over it.

Yes it's nice to have nice things. I have some maintenance expenses I understand but can be flexible about in the short and long term. Strings, new music, alcohol and cannabis, it's all pretty low-key and low rent. The only thing I really need as a basecamp is electricity, air conditioning, indoor plumbing, food access and storage and cooking, and connection with the outside world by way of phone, car, or internet. That's all. Everything else is basically static and for whatever reason, it's getting more expensive.

"The only way to win is not to play" holds pretty true to me when it comes to US financial system and navigating the aspects of "real" property and life versus synthetic engineering for the sake of jargon. Source: Worked Wall Street muni bonds, derivatives, arbitrage rebate, and asset management ~$4B.

Also anybody have the address to Jack Welch's grave? Gonna get loaded like a freight train and give him the Thomas Kinkade-Walt Disney treatment. What a horrible human being.

Re: The art and science of spending money

#32

> Frugality inertia: a lifetime of good savings habits can’t be transitioned to a spending phase I think a lot of financial planners start from a base assumption that their clients will be happiest if they spend their accumulated wealth. That’s not true in my case (at least as far as I can self-analyze). Whatever we don’t spend isn’t lost potential for us, but rather is future potential for our kids. Taking only the…

Yeah it's weird. The optimization function seems to maximize the spending rate from retirement age to death, which happens of course when you hit $0 at death and save as much as possible before retirement.

Re: The art and science of spending money

#33
The goal of saving is to have a lifestyle that you can MAINTAIN during retirement.

- if you save 60% of your income, your lifestyle will be severely damaged and you won't become a spender all of a sudden the day after retirement.

- If you save 5% of your income, then you won't be able to lower your lifestyle once you retire.

Saving 15/20% of income isn't a magic number. But it's something that doesn't damage your lifestyle + it accumulates to a meaningful amount that saves your ass in old times.

Going aggressive in either direction (spending or saving) is not the right mindset, because you won't be able to CHANGE once you adopt a specific lifestyle.

Re: The art and science of spending money

#34

Growing up poor and then becoming self-made wealthy - nothing like it. My life is so sweet because I am one of those fabled bootstraps people who walked 15 miles to school both ways uphill (paraphrasing). And what is my favorite thing? I can buy any meal at any restaurant I want and I never care about the price. It’s a glorious feeling. I eat whatever I want. Unfathomable

> ... can buy any meal at any restaurant I want and I never care about the price. It’s a glorious feeling. I eat whatever I want. This. Not quite there yet, but still have a decent selection of restaurants where I do not have to look at the right-margin. It is truly a sense of freedom one can only experience in hindsight (not consciously while looking at the menu). Good for OP.

[deleted]

Re: The art and science of spending money

#35

Growing up poor and then becoming self-made wealthy - nothing like it. My life is so sweet because I am one of those fabled bootstraps people who walked 15 miles to school both ways uphill (paraphrasing). And what is my favorite thing? I can buy any meal at any restaurant I want and I never care about the price. It’s a glorious feeling. I eat whatever I want. Unfathomable

> I can buy any meal at any restaurant I want and I never care about the price. It’s a glorious feeling. I eat whatever I want. Unfathomable

My budget for food used to be limited by money, now it’s limited by calories.

Re: The art and science of spending money

#36

> 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…

This is me and I struggle with it on a regular. We are quite comfortable (on my single salary I can cover mortgage, private care for my kids, and good food), but I feel behind -- because I came from a poor family who scraped on a regular. My parents still work their fairly simple factory jobs as they need to pay off their debts (albeit they are below 65)

What I'm trying this year is ensuring I can allocate a certain amount to savings (automatic withdrawal) and then treating the leftover money as "free to spend"

I don't know if this will work, as once I see that excess cash I think "Ah, let's use this to pad the emergency fund..." but I need to begin training the mind to be more comfortable with spending.

Re: The art and science of spending money

#37

Growing up poor and then becoming self-made wealthy - nothing like it. My life is so sweet because I am one of those fabled bootstraps people who walked 15 miles to school both ways uphill (paraphrasing). And what is my favorite thing? I can buy any meal at any restaurant I want and I never care about the price. It’s a glorious feeling. I eat whatever I want. Unfathomable

Happy for you. I hope to one day be able to honestly express “this is a good life, and I am experiencing things that were unfathomable when I was younger”. Care to share any details about how you did it in the context of a website dedicated to an older root of the word hacker than the more modern meaning?

The only reliable way of creating a huge fortune from scratch is to start a business. Many failures for me before it worked out.

Re: The art and science of spending money

#38

> 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…

This is me and I struggle with it on a regular. We are quite comfortable (on my single salary I can cover mortgage, private care for my kids, and good food), but I feel behind -- because I came from a poor family who scraped on a regular. My parents still work their fairly simple factory jobs as they need to pay off their debts (albeit they are below 65) What I'm trying this year is ensuring I can allocate a certain…

I *strongly* encourage you to pick a budgeting program and stick with it. I say this as someone who comes from perhaps more meager means than most in this thread and I now am in a similar position as you.

I use YNAB but I'm sure any will do. Essentially, I give every dollar a "job", whether that is to be the next car insurance payment 6 months from now or for our vacation fund. I know what money I have and where it's going. I have tracked every single dollar I've spent for about the last 10 years, less some petty cash.

I still have financial insecurity worries that likely stem from my childhood and I doubt they'll ever fully go away (see: people who grew up during the Great Depression), but I can allow myself to spend now and do so confidently.

Re: The art and science of spending money

#39

Earlier quoted context omitted.

This is me and I struggle with it on a regular. We are quite comfortable (on my single salary I can cover mortgage, private care for my kids, and good food), but I feel behind -- because I came from a poor family who scraped on a regular. My parents still work their fairly simple factory jobs as they need to pay off their debts (albeit they are below 65) What I'm trying this year is ensuring I can allocate a certain…

I *strongly* encourage you to pick a budgeting program and stick with it. I say this as someone who comes from perhaps more meager means than most in this thread and I now am in a similar position as you. I use YNAB but I'm sure any will do. Essentially, I give every dollar a "job", whether that is to be the next car insurance payment 6 months from now or for our vacation fund. I know what money I have and where it's…

I think you're right. I've mostly stayed away from budgeting apps. I'm already quite busy with work and parenting two young kids, but it may be the best way to train the mind. Thank you

Re: The art and science of spending money

#40

Earlier quoted context omitted.

I *strongly* encourage you to pick a budgeting program and stick with it. I say this as someone who comes from perhaps more meager means than most in this thread and I now am in a similar position as you. I use YNAB but I'm sure any will do. Essentially, I give every dollar a "job", whether that is to be the next car insurance payment 6 months from now or for our vacation fund. I know what money I have and where it's…

I think you're right. I've mostly stayed away from budgeting apps. I'm already quite busy with work and parenting two young kids, but it may be the best way to train the mind. Thank you

I have the same problem, I don't track my spending but have money automatically plowed into different investments and am generally frugal. Been looking into money manager ex and home bank as foss softwares. Mint, quicken and ynab are popular but I don't want a cloud solution where I have to pay a subscription fee, I mostly just want transactions with labelled data so I can see where the money goes.
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