humvee911 OP t1_j5hstnu wrote
Reply to comment by Dauoa_Static in LPT: A good financial habit to get into is treating money as hours of work. Ask yourself how many hours of work something would take if you buy it. The awareness of the amount of time you put into purchases helps reduce compulsive spending. by humvee911
If I remember correctly the book touches on this subject as well by essentially encouraging people to be frugal and not let the "lifestyle creep" happen. The extra money should be saved for retirement, a much better prospect than an hour at a restaurant every day.
CoolInvestigator t1_j5jfotu wrote
Struggling with loneliness I'd rather spend money eating at a restaurant even with strangers than alone. I am guilty of the lifestyle creep. I got ski lessons this year for the first time in my life. I can barely afford them but I justify it that I will be able to socialize doing something exciting.
Tavron t1_j5jii25 wrote
While I think what OP posted is sound advice, it can also go too far.
You never know how life will pan out and saving all of your money at expense of living your life is bad too.
bellYllub t1_j5luiey wrote
Yep, my husband and I both have medical issues that almost guarantee that we won’t make “old bones”.
We save for our future and are sensible with our money but we don’t do it at the expense of enjoying our lives right now.
We still buy the odd take-away meal and get it delivered. We treat ourselves to a new pair of boots when needed. We balance it so that we have plenty for emergencies and our future but also enjoy our lives right now!
A lot of people can’t do what we do. They have no savings, no pension etc and there are no guarantees we won’t end up that way. So we’re careful but we still enjoy life when we can.
ramad84 t1_j5k2gt6 wrote
congratz on gettin out there - i relate to this post.
essentially youre paying for an experience - not a physical object. you will be more fullfilled by experiences than objects in the long run.
texansfan t1_j5k9qct wrote
You absolutely have to find a balance between living a fun, healthy life and not overspending. Hope you enjoy the lessons!
frenchpressfan t1_j5kbs9o wrote
Tangential thought from a different post from a few days ago: Get yourself a massage 2-3 times a month, if you can afford it. The physical touch will really help
killerpretzel t1_j5lqqt6 wrote
Retirement age is 65 and median age of death is 72 for males, time is not guaranteed.
BlackWindBears t1_j5lphh7 wrote
This is actually good though!
The point is to be conscious of what you're trading.
If trading X hours of your time is worth getting a ski lesson then you've made a "good" decision.
If imagining trading that much time for the ski lesson feels like a bad deal, then you've made a "bad" decision
It's not about minimizing spending, it's about making sure you trade the hours of your life for things you actually value as much as you do those hours.
Exciting_Fee_370 t1_j5n7hc4 wrote
Right there with ya man. I spent $1200 on a ski pass this year and after doing doing that for the last 8 years, turns out I’m still poor. Been fun though.
Applejuiceinthehall t1_j5idk8o wrote
After you are done, make sure to read "I will teach you to be rich." Vicky Robin is great, but usually it's not the coffee that's keeping you from being rich
abitdaft1776 t1_j5j1s63 wrote
It’s the avocado toast, isn’t it
RODAMI t1_j5jyy1o wrote
The eggs
Robert__O t1_j5k4o06 wrote
The new avacado toast is an egg salad sandwich.
MetallicGray t1_j5kg32z wrote
If only we’d skipped the Avocado toast all those years ago.. we could’ve been billionaires too.
Chris_ssj2 t1_j5iuq94 wrote
What's a lifestyle creep?
nonametrans t1_j5j0g6y wrote
That 70 series nvidia card that's keeping you going for ages is fine, but you upgrade to a 80 or 90 series card. Then you justify that purchase by upgrading your perfectly good 1440p monitor with a 4k one.
Or you've always been getting a Toyota Corolla for years. It's done you and your family good, average fuel costs, low maintenance costs. But then all of a sudden you wanna get an Audi A8 cuz you think your higher paycheck can support it.
The argument is, why get all these purchases and upgrades if you've been okay with what you had previously? Sure, buy some luxuries to treat yourself once in a while. But most people can't stop themselves. That Audi A8 then becomes a Mercedes S class. That average coffee machine becomes a $2500 barista machine...you eventually outspend your means and have little savings for retirement.
Chris_ssj2 t1_j5j1aw5 wrote
I see, so the basic idea being that if something that you own has kept you going and will continue to do so, there is no point in upgrading it, just like that saying, the cheaper your pleasures are, the richer you will be
Thank you so much for taking the time to explain :)
RODAMI t1_j5jz43i wrote
Drive your car until it dies. Any maintenance is still cheaper than a new car payment.
Chris_ssj2 t1_j5k0zre wrote
But the more we delay the maintenance, the more fuel it will keep on guzzling though...
Dreshna t1_j5k8afy wrote
Yes and no. For most people that is the case. Sometimes the reliability is the more important thing. If you routinely have to make flights or drive through the areas that are inhospitable to life, a roadside breakdown can cost you more than a car.
imthatguydavid t1_j5k1n1s wrote
Fuck. That literally summed up my 20s
Prometheus188 t1_j5jbm36 wrote
Basically as your income increases, so do your expenses. As you get more salary; you also eat out at, buy a more expensive car, a bigger house, more expensive drinks, more expensive restaurants, etc...
Chris_ssj2 t1_j5jfdla wrote
I see, thanks for the clarification :)
RODAMI t1_j5jz8du wrote
Yup. I got a 20% pay bump? Now I can buy a. At that costs 20% more and eat a restaurant that costs more. People are weird.
FTeachMeYourWays t1_j5k1imx wrote
Is it? hold on, an hour lunch every day in an enjoyable manner seems to out weigh having a some spare capital once retired? Some people may save there whole life and never get to experience retiremen....
BlackWindBears t1_j5lqkq2 wrote
Well that's the point of the book! You can never replace the hours you spend. If you'd rather trade an hour of work for an hour of "enjoyable lunch" as compared to one hour less of work for a less enjoyable lunch then you've made a good decision!
The issue is that folks think that their income is really something they just automatically spend, rather than something they traded away the hours of their lives for.
If you don't spend that money, you can either negotiate reduced hours, or bring forward retirement by that many hours (well, far more when including investment growth, but you have to factor in your risk of dying before you get to enjoy it), or use the accumulated savings to take a break from work of that many hours when between jobs.
Locke_and_Lloyd t1_j5k9kpl wrote
Why would I want to accept the additional stress of a promotion if the extra money won't benefit me for 30 years? Some needs to be spent on lifestyle inflation now.
enGaming_YT t1_j5jlgid wrote
I would rather suggest Rich dad Poor dad. 👐🏻
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