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And you could be hit by a bus tomorrow and not live to see another day. He who dies with the most toys wins...so to speak...
Being smart is important but a lifetime of it isn't fun. I did 6 years of it and finally realized while money doesn't buy happiness it sure makes life way more enjoyable to spend some once in a while.
My personal belief is that a balance is necessary between saving for the future when you either don't want to work much or can't and then living today.
One life lesson I learned from a wealthy guy was rent was you need when you need it. That came about when I asked him why he didn't own a mega $5 million house like so many others of his ilk in Vail. He said all those people think they are getting ahead but once inflation, taxes, upkeep, renovations, interest and other expenses come into play they don't get ahead and it's a hassle because they are always tied into going to Vail for vacation, instead of other places.
Ever since then I have adopted that policy and now live a stress free life with no big debt on my back. If I need a raft to go rafting, I rent. Race car, I rent. Motorbike, I rent. And so on. I don't have depreciating assets all over that require maintenance, insurance, taxes and care and feeding.
Last fall for my sisters wedding we rented for a week a 5 bedroom mansion for $3K and for 7 people. We had a great time in a beautiful furnished house with mountain views for less than the cost of the cheapest hotel and we didn't have to clean it, pay taxes on it or the mortgage.
So I think there are ways you can really enjoy yourself without breaking the bank.
And on the other hand I don't want to end up like my good friend who works a menial job and lives in his car. He's 65 years old. He's actually an extremely good saver but instead of investing in a roof over his head or some other investments to retire on, for 20 years once he saved $20K or so, however long that would take, he'd head off for Mexico and blow it all. Then he'd end up penniless and have to start over again.
My new shotgun is $50 more than when I bought it a year ago. The engine hoist I bought (for fun) to take out engines/transmissions is $20 more than I bought it just a month ago. My tool set is $30 more than when I bought it two years ago. We're going to see a large increase in the cost of goods here in the near future.
While it may make sense to rent some things, if you're going to use something over and over again it makes sense to buy.
If it floats, flies, or fornicates, it's better to rent.
Plus there are ways to do things that don't require much money out of pocket, for example buying an older bike and fixing it up. My big thing is minimizing taxes, since they are essentially a black hole.
Wheelsup, not sure where this accusatory stuff is coming from. I absolutely don't think I'm "better than others" for my financial choices (ask my ex-sorta fiancee who dumped me, among other things, because I was financially imprudent!)
I just don't like to see anyone judge themselves and others by stuff. Period. And I think that happens when people internalize advertising. Enjoy a nice suit or a beautiful piece of jewelry or a neat car? If you can afford it, that's what money is for- enjoyment after necessities (and maybe a bit of prudence).
Feel like a failure if you don't have this thing or that thing, or look down on someone who has a old or beat-up thing or doesn't have some thing at all? Run your life into the ground to acquire some thing because you feel inadequate without it? Feel above people who don't like or have the same thing? To me, that's a failure as a person, never mind financials.
I really don't know where your comments came from. Perhaps I haven't been able to express myself clearly? I loathe advertising, ego-ism and judging self and others by stuff, and think that advertising, internalized, gets people into that ego-driven sense of self where they buy stuff and show it off for the admiration and envy (presumed) of others, to their own detriment. I mean, advertising hardly exists to give information or something- they are geniuses, those who put out the seductive ads, and they can eat your life and sense of self and financial pleasures.
Perhaps I'm not understanding when people say "Society says..." I do think a lot of society is advertising and people who have absorbed it, and I think that's sad for all concerned.
If you knew how I lived, you'd understand that no one would ever accuse me of not "spending some once in a while." I just don't buy stuff that people see.
Quote:
Originally Posted by wheelsup
Ah OK so I guess that makes you better than the people who like driving luxury cars, cool new gadget filled cell phone, or designer jeans.
And you could be hit by a bus tomorrow and not live to see another day. He who dies with the most toys wins...so to speak...
Being smart is important but a lifetime of it isn't fun. I did 6 years of it and finally realized while money doesn't buy happiness it sure makes life way more enjoyable to spend some once in a while.
It's true. It's always a balance. But more than 2/3 of Americans are living payday to payday or going further in debt. That was the conclusion of Jean Chatzky in her reasearch for her book: The Difference.
Stanley's latest work is mediocre. It has some interesting facts, but the overall tone is the same as Millionaire Next Door.
I think Chatzky's book is better because it focuses on what people did to rise above the "payday to payday" and "further in debt" statuses. She outlines attitudes as well as the psychological/emotional tricks people employ to improve. She also talks about how people improve in their careers and is also less preachy than Stanley is. Her book is more succinct and does a better job of marrying the concepts of career management, psychology, and personal finance into one digestible and practical book.
Last edited by mysticaltyger; 04-01-2010 at 07:09 PM..
One life lesson I learned from a wealthy guy was rent was you need when you need it. That came about when I asked him why he didn't own a mega $5 million house like so many others of his ilk in Vail. He said all those people think they are getting ahead but once inflation, taxes, upkeep, renovations, interest and other expenses come into play they don't get ahead and it's a hassle because they are always tied into going to Vail for vacation, instead of other places.
Interesting. Stanley makes a point of mentioning in Stop Acting Rich that the truly wealthy usually don't own vacation homes for all the reasons your rich aquaintance mentioned (including the fact that the rich don't like being tied to going to 1 place for vacation). Once again, it's usually high income folks with lots of debt who own vacation homes. Stanley mentions there is another category of rich, who he refers to as the "glittering rich". These are the people who can afford to buy luxury goods and 2nd homes and still be wealthy. But they are a very small portion of the overall wealthy population.
My personal belief is that a balance is necessary between saving for the future when you either don't want to work much or can't and then living today.
One life lesson I learned from a wealthy guy was rent was you need when you need it. That came about when I asked him why he didn't own a mega $5 million house like so many others of his ilk in Vail. He said all those people think they are getting ahead but once inflation, taxes, upkeep, renovations, interest and other expenses come into play they don't get ahead and it's a hassle because they are always tied into going to Vail for vacation, instead of other places.
Ever since then I have adopted that policy and now live a stress free life with no big debt on my back. If I need a raft to go rafting, I rent. Race car, I rent. Motorbike, I rent. And so on. I don't have depreciating assets all over that require maintenance, insurance, taxes and care and feeding.
Last fall for my sisters wedding we rented for a week a 5 bedroom mansion for $3K and for 7 people. We had a great time in a beautiful furnished house with mountain views for less than the cost of the cheapest hotel and we didn't have to clean it, pay taxes on it or the mortgage.
So I think there are ways you can really enjoy yourself without breaking the bank.
And on the other hand I don't want to end up like my good friend who works a menial job and lives in his car. He's 65 years old. He's actually an extremely good saver but instead of investing in a roof over his head or some other investments to retire on, for 20 years once he saved $20K or so, however long that would take, he'd head off for Mexico and blow it all. Then he'd end up penniless and have to start over again.
This is a great philosophy, and I completely agree about vacation homes. I have no interest in having one because I don't want the work and expense, and don't want to be tied down to going to the same place all the time.
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