Green Light to Spend (husband, family, travel, kids)

[organic_donna]

I had a job that didn’t pay a lot, so the only road to retirement, was saving as much as possible and investing.
I had a hard time spending money when I first retired too, I can honestly say, I still do. But I love a beautiful home and filling it with art makes me happy.
So I say, make a budget, and spend the excess on things that make you happy. You can donate money to charities too. I feel good giving money to animal shelters.

[luv4horses]

It may sound weird but i think it’s easier for couples to spend discretionary money. Each encourages the other and then strikes a balance by choosing something For themselves.

Singles are on their own unless they do things with and for their kids and little ones. A single person rarely goes out for a great meal alone for example. Of course he/she can still go crazy buying art or vehicles or a house with a view.

[sycamore1996]

Originally Posted by caco54

I am retired, married and 66 wife 65. We have more than substantial savings, a great pension, holding off for 70 on SS and no debt. Four kids all college grads with no student loan debt thanks to dear old Dad. All this yet I have a “ yellow light” when it comes to spending. I think I inherited my parents depression mentality or I am basically cheap. At what savings amount do you blow the dust off the wallet and spend?

What would you spend it on? We just moved cross country and I'm glad we unloaded all those things we bought over the years and hardly used. We can spend more now since we're in a lower cost of living area but in no way do I want to go back to having too much stuff with the resulting clutter.

[adjusterjack]

Originally Posted by caco54

I am retired, married and 66 wife 65. We have more than substantial savings, a great pension, holding off for 70 on SS and no debt. Four kids all college grads with no student loan debt thanks to dear old Dad. All this yet I have a “ yellow light” when it comes to spending. I think I inherited my parents depression mentality or I am basically cheap. At what savings amount do you blow the dust off the wallet and spend?

Depends on how much money you have, what you want to buy and how much you want to spend on it.


I'm a bit like you. I have substantial savings, no debt and no mortgage so my SS covers my monthly expenses. I live frugally, not intentionally, just happens that my interests are mostly frugal but I have no problem spending the bucks on things that do excite me.


Nothing wrong with financial caution.

[TuborgP]

Originally Posted by caco54

I am retired, married and 66 wife 65. We have more than substantial savings, a great pension, holding off for 70 on SS and no debt. Four kids all college grads with no student loan debt thanks to dear old Dad. All this yet I have a “ yellow light” when it comes to spending. I think I inherited my parents depression mentality or I am basically cheap. At what savings amount do you blow the dust off the wallet and spend?

You are normal and I was am the same way. Older now but remember things regarding savings and other finances are probably better than what you were projecting ten years ago. You are probably/possibly still holding on to emotions associated with those numbers.
You may also be worried about reversion to the mean of expectations.

[Clemencia53]

Originally Posted by caco54

OP here. An example of my spending conflict. I am visiting friends on Florida’s west coast. Had lunch in Naples and looked at golf shirts. Saw two really nice ones $90 each. Headed to the flea market tomorrow where I will spend $20 each. Lesser quality and sizing may be off but I’ll buy them. With out a doubt I can afford the $90 shirts but I just can’t bring myself to spend that kind of money on a shirt that will end up with a mustard stain from a $1.50 hot dog.

By the way no doubts that when I pass my kids will come to my funeral luncheon in $90 shirts.

Maybe buy one 90 dollar shirt and one flea market shirt?

[finalmove]

Originally Posted by caco54

I am retired, married and 66 wife 65. We have more than substantial savings, a great pension, holding off for 70 on SS and no debt. Four kids all college grads with no student loan debt thanks to dear old Dad. All this yet I have a “ yellow light” when it comes to spending. I think I inherited my parents depression mentality or I am basically cheap. At what savings amount do you blow the dust off the wallet and spend?

66 and 58. We have an annual allowance that's more than we need. Saving and compounding got it done.
As long as we watch ourselves, we have funds to see my wife beyond her expected life. After she passes, the balance goes to three charities.
I won't be around by then based on family history.

[BellaDL]

Originally Posted by caco54

With out a doubt I can afford the $90 shirts but I just can’t bring myself to spend that kind of money on a shirt that will end up with a mustard stain from a $1.50 hot dog.

Ha ha. You sound just like me. I like quality clothing but have never paid retail, non-sale prices for them. I got big thrills from getting merino wool, silk, linen and high-tech clothing (some with designer labels) from out-of-season clearance sales or thrift stores.

I don't mind spending money on big tickets items as long as they are of high quality AND ON SALE. Last Christmas, I took advantage of Black Friday specials and spent over $5K for my husband's power tools (a Jet cabinet saw, a Dewalt reciprocating saw and a Dewalt miter saw with all the accessories) and saved at least $3K over the regular prices.

Back to your OP about 'green light' to spend, I think whether a person is thrifty or spendthrift depends on his/her DNA and life experience. I very much doubt that there is a magic wealth threshold number which turns a thrifty person to a big spender when he/she reaches it.

For frugal people like me, there is always a spending yellow light regardless of how much money that we have. Unlike miser who has spending red light, frugal people have spending yellow light. We ponder, hesitate, research and analyze to make sure that what we want to spend is the best value for the money before turning on our green spending light.

So just enjoy your frugality and common sense spending habit.

[SunGrins]

I have a good pension and savings and held off on my social security until 70 and kept my usual frugal spending habits. I just did my taxes so I took a good look at my finances. Even with a huge unplanned boiler fix last year it is time to start spending a bit more. That means traveling in my case. I have one major remodeling project on my list so I will tackle now.

[ddeemo]

Originally Posted by Rachel976

It's been studied and demonstrated that people who spend their money on experiences - like a nice trip - are happier than people who spend the same money on "things" - like a top-of-the-line appliance. I don't imagine it's the experience/thing that makes the difference, but the mindset of the people who choose to experience, say, the history of Rome and the art of Florence as opposed to people who allocate that money to getting a $5000 refrigerator instead.

(Of course, if you can afford BOTH, better yet....but if it's one or the other, the people choosing the experience are happier than the people choosing the item.)

It depends on the situation also, I was happy spending "only" $5K for the Fridge - we bought a house with built in subzero that went out about a year after (new they are about $15k) - in some cases, costs are relative.

For us, we can afford both, but I am more comfortable paying more for tangible items than experiences. I would have no problem paying $60K for a vehicle but would have trouble paying $6K for a 2 week trip.

I am with the OP, we have good sized pensions, paid for houses, no debt and substantial retirement accounts yet I sometimes have an issue with spending money on things that I know I can easily afford. We are still in save mode even though not needed,