At what point are you comfortable with big, frivolous purchases?

[Anonymous]

All of last year I was in survival mode knowing that I would likely lose my job as a federal contractor and as the main breadwinner in my family. We cut back on a lot and saved as much as we could in case I lost my job and managed to get about 8 months of expenses into liquid savings. I found a new job in December which should be pretty stable (no longer tied to the federal sector) and although it was a pretty hefty paycut we're still able to save.

Last year was also the year I turned 40. I had really wanted to buy a piece of jewelry I've had my eye on for years (in the ~$5K range, but it's gone up because of the price of gold). I obviously didn't because of everything going on. I would like to buy it now but feel immense guilt doing so and I'm not sure why -- perhaps because it would be the most I've spent on just me (e.g., not a family trip or trip with my husband or a home improvement or heck something for my kid, just me).

I know we can afford it (I think?). I'm 40, partner is 44. We collectively have $1.25m in retirement, $225K in liquid and taxable investments. Kid has a fully funded 529 thanks to grandparents (they're 11 and have over $400K in there). No debt other than mortgage. So I can afford to just take the $5K out of savings and buy the bracelet, right? Argh, why do I feel so guilty!!

[Anonymous]

I too passed on a 5K gold jewelry piece recently. I've thought about it, and I'm not going to buy it. Instead, I will focus to my health - which will cost more, but pay off better, I feel.

[Anonymous]

focus on

[Anonymous]

That's not the kind of thing to buy if there's any question whatsoever as to whether you can afford it.

[Anonymous]

If it's giving you any negative feelings, don't buy it

[Anonymous]

Things could get ugly after May 2026 either way our economy. Possibly recession or worse. I’d hold off.

[Anonymous]

I wouldn't. After we had a tumultuous job issue, we hunkered down for a few years before doing any sort of splurge. Mentally, watching our balance increase rapidly was what we needed/wanted to get over the mental load of the trauma. On top of that, a splurge for just one person in your family feels unfair.

[Anonymous]

Yeah, hold off. Also, learn about investing and saving. Read WSJ. Don’t buy stupid expensive, frivolous sht unless you MUST have it. Like the money for that gold $5k necklace, invested in an actual gold etf like GDX or SHNY would be worth 3x that amount in three months. So many people love spending money on dumb sht. I view money as “freedom bucks”. You can buy some necklace or pair of $300 dollar jeans that will devalue, or you can buy GDXJ or VT and have much more money down the road. I don’t want anything except investments. I don’t need to impress my neighbors with dumb sht. I just want profits.

[Anonymous]

5k? Hahaha

No but you could get yourself a nice piece for $500 for your birthday.

[Anonymous]

I would buy it. Celebrate stability and a new beginning after the trauma/fear of last year.

You saved 8 months of expenses that you ultimately didn't need to draw on. Your college savings and retirement are in good shape.

You can't predict the future, but it's also good to acknowledge the end of something scary/hard.

[Anonymous]

If it makes you feel better...think of it as an asset that holds some value (and may even be worth more than you paid for it in the future).

I doubt it's solid gold...but if gold prices remain where they are at, it certainly has just the value of its gold content if it came to it.

[Anonymous]

We all choose what to spend on. For me, it's always travel. That's simply my biggest priority. Of course, I still compare prices when it comes to travel, but I never stop doing it.

[Anonymous]

Anonymous wrote:I would buy it. Celebrate stability and a new beginning after the trauma/fear of last year.

You saved 8 months of expenses that you ultimately didn't need to draw on. Your college savings and retirement are in good shape.

You can't predict the future, but it's also good to acknowledge the end of something scary/hard.

Yeah, no. Save it and buy VXUS. You’re welcome.

[Anonymous]

Anonymous wrote:All of last year I was in survival mode knowing that I would likely lose my job as a federal contractor and as the main breadwinner in my family. We cut back on a lot and saved as much as we could in case I lost my job and managed to get about 8 months of expenses into liquid savings. I found a new job in December which should be pretty stable (no longer tied to the federal sector) and although it was a pretty hefty paycut we're still able to save.

Last year was also the year I turned 40. I had really wanted to buy a piece of jewelry I've had my eye on for years (in the ~$5K range, but it's gone up because of the price of gold). I obviously didn't because of everything going on. I would like to buy it now but feel immense guilt doing so and I'm not sure why -- perhaps because it would be the most I've spent on just me (e.g., not a family trip or trip with my husband or a home improvement or heck something for my kid, just me).

I know we can afford it (I think?). I'm 40, partner is 44. We collectively have $1.25m in retirement, $225K in liquid and taxable investments. Kid has a fully funded 529 thanks to grandparents (they're 11 and have over $400K in there). No debt other than mortgage. So I can afford to just take the $5K out of savings and buy the bracelet, right? Argh, why do I feel so guilty!!

Right now buying something like that is financially stupid.

You feel guility because you know it is dumb.

It is not about how much you have OP it is about being smart

[Anonymous]

My net worth is at least 5x yours and I wouldn’t.