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

[Anonymous]

Anonymous wrote:

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

What’s happening in May?

Powell exits the federal reserve. At this point, whoever trump tries to appoint won’t be approved, and whoever he chooses will be a yes-man, who will run our economy into the ground.
Our economy is only as good as our democracy.

[Anonymous]

Anonymous wrote:DW got a great new job this year and I bought her a 12k watch for Christmas. She is in consulting and has in-person meetings all week long and also does a lot of wining & dining/business development, so in my mind the watch is also an investment in her career (men look at watches). Our HHI is around 1.3m. This is the first big piece of jewelry either of us has bought since our wedding twelve years ago. It felt like an appropriate way to celebrate the new job.

Good for taking the opportunity to brag but how is this relevant?

[Anonymous]

Yes, if it’s a one time thing and you’ve discussed it with your spouse.

[Anonymous]

You had a good run and were able to save 1.25M I would suggest counting yourself lucky to do so.

[Anonymous]

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

So you have $10 million and won’t buy something for 5k? That’s like someone with 10k savings who won’t buy a $5 coffee. It’s not going to have any effect on your life

[Anonymous]

There's a YouTuber I follow (sorry can't recall name) and she said she got the advice to never buy anything expensive you can't buy two of and that it's served her well. She's rich now.

So, if you can't easily afford two $5K bracelets, you can't afford it.

[Anonymous]

Anonymous wrote:

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

So you have $10 million and won’t buy something for 5k? That’s like someone with 10k savings who won’t buy a $5 coffee. It’s not going to have any effect on your life

Not a logical (or fair) comparison. Having only $10K in savings does not mean you should routinely spend $5 on coffee. Sure one day wont matter. But it's when you have that attitude about many things, and soon you are spending $500 per month on "all the little things/$5 items that don't really matter" and then you realize that $500/month could be a $6K vacation or a $3K vacation and $3K towards your kid's college fund. It's all in your attitude and long term plan.

Most people take that approach and then wonder why they are living paycheck to paycheck and don't have enough savings for retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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

So you have $10 million and won’t buy something for 5k? That’s like someone with 10k savings who won’t buy a $5 coffee. It’s not going to have any effect on your life

Not a logical (or fair) comparison. Having only $10K in savings does not mean you should routinely spend $5 on coffee. Sure one day wont matter. But it's when you have that attitude about many things, and soon you are spending $500 per month on "all the little things/$5 items that don't really matter" and then you realize that $500/month could be a $6K vacation or a $3K vacation and $3K towards your kid's college fund. It's all in your attitude and long term plan.

Most people take that approach and then wonder why they are living paycheck to paycheck and don't have enough savings for retirement.

Sure to be fair that’s not a perfect analogy since coffee is a regular thing. Income in this situation is more relevant. Back when I was a new grad I had about 10k in savings after a couple months working @ 80k/yr. I ate out almost every day for lunch and bought coffee too. $10-15/day. Had a car payment/student loans. Lived in a 1BR apartment in nova. Still saved nearly half my income.

9 years later, I earn 300k and have a $1.3M net worth starting from negative -30k at 22. Along the way I made a lot of stupid purchases. I bought a 90k sports car 5 years ago, spent about 75k on travel, another 80k on hobbies over the years, I eat out several times a week. Despite this my net worth keeps going up. It would have been higher if I lived very frugally but I like to enjoy life.

Being ridiculously frugal to the point where you can’t spend 5k on something that makes you happy when you have $10M is just dumb

[Anonymous]

What does your husband think about this, OP?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

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

So you have $10 million and won’t buy something for 5k? That’s like someone with 10k savings who won’t buy a $5 coffee. It’s not going to have any effect on your life

Not a logical (or fair) comparison. Having only $10K in savings does not mean you should routinely spend $5 on coffee. Sure one day wont matter. But it's when you have that attitude about many things, and soon you are spending $500 per month on "all the little things/$5 items that don't really matter" and then you realize that $500/month could be a $6K vacation or a $3K vacation and $3K towards your kid's college fund. It's all in your attitude and long term plan.

Most people take that approach and then wonder why they are living paycheck to paycheck and don't have enough savings for retirement.

Sure to be fair that’s not a perfect analogy since coffee is a regular thing. Income in this situation is more relevant. Back when I was a new grad I had about 10k in savings after a couple months working @ 80k/yr. I ate out almost every day for lunch and bought coffee too. $10-15/day. Had a car payment/student loans. Lived in a 1BR apartment in nova. Still saved nearly half my income.

9 years later, I earn 300k and have a $1.3M net worth starting from negative -30k at 22. Along the way I made a lot of stupid purchases. I bought a 90k sports car 5 years ago, spent about 75k on travel, another 80k on hobbies over the years, I eat out several times a week. Despite this my net worth keeps going up. It would have been higher if I lived very frugally but I like to enjoy life.

Being ridiculously frugal to the point where you can’t spend 5k on something that makes you happy when you have $10M is just dumb

A $5000 piece of jewelers wooden make me happy. Travel does. Jewelry foremost of style. It’s a waste aside from very classic pieces. Even those get boring after a while.

[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!!

No need to feel guilty. Kid’s college set, sufficient retirement fund for your age and enough of an emergency fund.

Don’t feel guilty about celebrating your 40th by spending less than 1/3 of 1% of your net worth on yourself. You have earned it!

[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!!

Jewelry, bags, watches aren't needs, they are wants and you'll probably wear a few times and then start craving for something different so unless you hit a $5 million mark, its not sensible. That being said, your money your choice. I'm only stating my opinion.

[Anonymous]

Your home is paid off? If not then pay an extra $5K to knock off $5k+ interest. Now that's a gift to yourself.

[Anonymous]

Anonymous wrote:

Anonymous wrote:DW got a great new job this year and I bought her a 12k watch for Christmas. She is in consulting and has in-person meetings all week long and also does a lot of wining & dining/business development, so in my mind the watch is also an investment in her career (men look at watches). Our HHI is around 1.3m. This is the first big piece of jewelry either of us has bought since our wedding twelve years ago. It felt like an appropriate way to celebrate the new job.

Good for taking the opportunity to brag but how is this relevant?

The title of this thread is: At what point are you comfortable with big, frivolous purchases? I was answering the question.

[Anonymous]

Anonymous wrote:

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

So you have $10 million and won’t buy something for 5k? That’s like someone with 10k savings who won’t buy a $5 coffee. It’s not going to have any effect on your life

She said $1.5 million not $10million.