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

[Anonymous]

Anonymous wrote:You can 100% buy this. Don’t listen to the others. It’s for your 40th, enjoy it. YOLO.

Absolutely agree. Buy yourself a 40th birthday gift, OP.

Agree with PP most families in OP's situation would absolutely (and easily) spend this on a big trip. Even one weekend at Disney. Why should a bracelet she would probably wear all the time be that much different? It's a splurge, and shouldn't be a regular thing, but it's allowed every once in a while -- including for a 40th.

[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.

You earn $1.3 million per year and got married 12 years ago so probably worth 20 million. OP has total savings of less then $2 million.

[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

Well when we finished grad school, we had a combined income of $85K and almost $70K in student loans. So we lived in a moderate apartment (nice, but not as nice as we would have liked), took lunch 4 out of 5 days (still ate in cafeteria with coworkers all days), brought coffee from home, and worked to pay off our student loans. Paid them off in 2 years, then saved for 20% down on a house (needed $40K). By age 26, had bought a house, then began paying off the cars and our 2nd and beyond cars for each of us were purchased with cash (each got a new luxury car at age 30-32). We still enjoyed life, we still socialized, but we did spend 3-4 years getting ourselves out of debt and on the right track.

Spouse moved up quickly in management at their company and moved around to improve opportunities. Paid off our house by 40 (this was house #3 due to moves) Was a CEO by 40, retired by mid 50s, with a UHNW. So we treated ourselves to things along the way, but yeah in our 20s, we didn't splurge, we focused on getting a strong financial foundation. In return, by 35 we were able to take almost any vacation we wanted, drive whatever cars we wanted, etc. But we didn't go overboard. Nothing like retiring in your early to mid 50s, with the ability to spend $500K+ per year for the rest of your life and still leave your kids a fortune.

[Anonymous]

Man people are so negative here! I think it’s worth celebrating important things - you’re not buying jewelry constantly. Enjoy your money a little. I’m in a similar position and age as you and just bought a 5k bracelet. I don’t miss the money from my bank account at all, but I wear my bracelet daily and love ut

[Anonymous]

We have $8M net worth ($7M liquid, rest in home equity) and finally ok'd DH to gift me a gold Cartier watch around $20K for a promotion. Late 30s. Slightly regret not buying last year before the run up in gold.

[Anonymous]

I think either way is fine with me whether you would buy them or not. I'm 50 years old and our yearly HHI is only 200K. Our house is paid off, and no other debt, one child with 4 semesters college expense covered. We will get pensions, SSN and have combined $2.2 mln in 401K. Three years ago, I treated myself to $3000 gold diamond stud earrings (which were on sale for this price from $6000). I wear them all the time; however, the older I get the less I want of any of this materialistic stuff. I prefer travelling, having more savings for peace of mind, spend money on healthy food. Do I regret buying those earrings? Yes and no, it really is difficult to answer. I think you can afford the bracelet and truly buy it if you want it.

[Anonymous]

You already have more in retirement savings than most Americans have when they retire. Live a little and treat yourself.

[Anonymous]

You have the money. Go get it.
I wouldn't buy it, because I never wanted frivolous things. I don't get your excitement at all.It's like being happy for someone who likes Kardashian show and new episode is out.

[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.

Love this! Curious what the income split is between you - is she the breadwinner?

[Anonymous]

I'm pretty frugal, and I would say to buy it. If you are meeting all of your other financial goals and have money left over, there is nothing wrong with spending on something that you enjoy and that will make you happy for years.

(disclaimer: I'm a man and know nothing about jewelry.)

[Anonymous]

Anonymous wrote:We have $8M net worth ($7M liquid, rest in home equity) and finally ok'd DH to gift me a gold Cartier watch around $20K for a promotion. Late 30s. Slightly regret not buying last year before the run up in gold.

If it was the gold Baignoire I am sooo jealous. Also saw it jump from $15K to over $20K. Almost grabbed it when I saw it at duty free at AMS and kicking myself.

[Anonymous]

Anonymous wrote:You already have more in retirement savings than most Americans have when they retire. Live a little and treat yourself.

Most Americans are poor.

[Anonymous]

Would you be ok if your DH also went out and spent $5k?

[Anonymous]

It doesn’t sound like it’s going to be fun.

[Anonymous]

Anonymous wrote: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.

This approach is stupid.