Do you have difficulty spending money

21

As everything in life, the answer to this question evolves over a dog’s (life-)time. I won’t start with Kindergarten, but maybe about my late 40’s?

Prelude (pre 2019): I pay CHF 300k - 400k just in taxes. I don’t have any difficulties in spending money. As in not at all. Mostly.

Do I ever look at the price when grocery shopping. No. Vacations? Sure, just book it if the dates look convenient. New car? Ok, maybe not a brand new car as everyone knows that a three year old car has the best price point (overheard at some dinner party). Still, just buy it used, whatever the price is for a three year old car that I want (an SUV, formerly Honda, now Mitsubishi PHEV).
I still saved plenty of money even if not looking at spending too much. Lifestyle creep happened, but on a non-inflationary track, certainly well below the compensation increases.

Act 1 (2020 - 2021): I find spending money difficult initially when jumping the shark of part time retirement around 2021 or so.

Does this recently embarked journey of producing cash flow via stock picked dividends really work? Everyone tells you that you cannot beat the market (but nobody tells you that you do not need to beat the market, you just need to manage the cash flow). The 4% rule. One hundred blogs and papers expanding on the 4% rule. This Mustachian blog, that frugal forum, a spectrum of opinions is available to choose from, nobody can tell me what will work for me.
The most vocal commentators are often the craziest ones, but there’s no such label on their comments.

Act 2 (2022-2023): I find spending (non-salary) money is like (quickly) learning how to ride a bicycle and then just cycling along, gaining confidence exponentially with every kilometer cycled.

… but the sharks keep circling showing their fin every now and then. 2022 the market decides to take a recess. Asset prices fall. Dividends? Ok, they do not fall. Thank God! The theory works as planned! Did I anticipate it? No, I only hoped for it based on historic returns of my picked companies in downturns. Things run just fine. Everyhing’s cool.

Act 3 (2024-2025): Ok, we can apparently spend the cash flow that comes in via dividends without worrying too much about it. Still worry, though. Just in case.

So, earnings increase again, and there is this AI bubble forming, but things overall look fine for the companies I picked. Steady coasting even if the US presidency election surprises through the Orange person getting elected again, just stay the course, I guess? Then, Liberation Day happens. Tantrum. Prices collapse. But dividends just continue to pay out and rise. Maybe this dividend growth strategy works after all?

Act 4 (2026-…): Yeah, looks like this works … let’s continue to monitor, though. Spend money as it comes in via last year’s dividend payouts and let’s cautiously factor in the expected dividend increases, but stay on the conservative side.

Act 4 details are currently missing. It looks like the protagonist is currently planning to spend about 80% of the expected cash flow. Future expensive trips – like arctic cruises – will probably consume 100% of the expected cash flow next year, but Goofy Goofy’s wife hasn’t made final decisions yet.

Final Act: What do you mean? Final act … this isn’t funny. But since you insist: I don’t plan to pass away with no money left. I understand from a purely personal POV it’s best do die with no money left, but that’s not for me.

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22

Yeah. I want to get into the habit now, because the early years of retirement are probably the ones where you still have your health and you don’t want to waste it by being too scared to go on a luxurious holiday etc.

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I have kids, so what I don’t spend will go to them, which I don’t mind at all.

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24

Personally, I find it difficult to spend on things that bring me neither joy nor value. Clothing is a perfect example: I detest shopping and own T-shirts that are 10 to 15 years old. However, my increased attention to nutrition now compels me to renew my wardrobe.

Conversely, I readily invest in what enriches my daily life. For gardening, for instance, hiring professionals proves not only more efficient but also more economical than purchasing underutilized tools.

My spending criteria are straightforward: the joy provided, personal or family well-being, time saved, and lasting quality :slightly_smiling_face:.

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25

Why would I even spend on something that provides no joy or value?

If you exclude mail order socks/underwear I get from aliexpress to bump orders to the free shipping limit, I haven’t bought any clothes in the last decade.

The only thing that I try to watch out for is whether I’m getting shiny object syndrome. Maybe I want to buy something, but I don’t really need it, I might use it for a while and figure out I didn’t need it really after all and so it ends up being a waste of money.

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26

Interesting topic. A few thoughts.

First, as I’ve grown older i’ve come to hate shopping more and more and both the consumerist / commercial side to society. Place I hate the most in Switzerland: Bahnhofstrasse in Zurich.

At the same time, I have expensive tastes in other areas (while penny pinching elsewhere). This is not always rational behavior. As you get older though you realize more stuff means more junk more clutter and more worries (insurance, need for more space, etc.). One of my regrets is not choosing a more minimalist style earlier in life (as opposed to building various collections in areas that interest me but now leave me wondering what am I going to do with it). Not to cut back on quality, just to be clear, but on quantity.

Experiences matter a lot in life - more so than possessions (often, not always), and even more if shared experiences. Most inspiring for me in Switzerland is long hikes high in the mountains - feeling nature.

Sometimes though ‘buying’ things also enhances that sense of quality of life. It’s only happened a few times that I’ve bought something where I really felt in a sustained way “wow, this is great”. Two which come to mind

  • Sporty convertible - so much fun (also in winter) driving through the Swiss mountains, on vacation to Italy, etc.; this has really been a big please (albeit not practical)
  • My first Apple product which opened my eyes re lots of opportunities

…OK, expensive watch collecting is also a vice, but it is very personal. Same with travel to many obscure corners of the world. Glad I got that out of the way when I was younger. Now I am more risk averse (much more to lose) and place greater value on spending time with my wife, enjoying downtime at home, etc.

Still, savings are great. They give recurring revenues, they give peace of mind, they give freedom, etc. and I’m glad at one point in life I made it a structural rule to FIRST pay my savings (into stock market or savings account) rather than saving simply what was left at the end of the month after I wasted money on all kinds of stuff.

Have also found that the simple things in life are often more valuable. Michelin star restaurant - super fancy, creative, etc. but you’re left wondering (after they make almost everything into a mousse) what you actually had for dinner… vs. Schnitzel/Pommes at a great local resto (much cheaper, tasty, and atmosphere).

It’s always a balancing act… enjoying life now vs. ensuring you can enjoy it later. A good friend had cancer when he was a teenager, 5% chance to live, he made it but it dramatically impacted his outlook. He enjoys every single day and makes minimal plans for the future. I couldn’t life that way, but can’t blame him because he stared death in the eyes and realizes it could all be over any day.

An older friend of me told me I should relax given my financial status. He said: I’m retired and have tons of time but one you’re retired you spend a LOT LESS money. Maybe that’s something we mis-estimate. Bigger question is now becoming what do I spend my time on, rather than what do I spend my money on. Maybe it’s a more important question. Earlier in life I already resolved the “who do I spend my time WITH and who not” and it led me to cut various energy vampires out of my life.

Anyway, rambling response - the thread triggered me:)

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27

Hmmm is it true? A constant topic when I talk with people who don’t save is that they don’t understand “pay yourself first”, they think/claim that “saving what’s left at the end of the month” does it. I don’t think it does, saving systematically and the same second the salary hits the account did it for me and others. “Saving” what’s not spent just ends up being wasted (not in your case, I’m sure) one way or another, paying yourself first makes sure it’s saved.

I tell friends: make a second, third, whatever account, cut up the debit card, send money when you get paid, without fail, make sure you survive until the next payday, it’ll build up before you know it.

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Funny (or sad?) that no one has issues deciding. Most of the time I need to do/have something, the biggest hurdle is deciding if (or in which form) I want it.
You can say my illness is that I’m a cronic undecided person.

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I can relate to that. E.g., at least for some items and services I’d be willing to pay for better quality. However, higher price doesn’t necessarily mean higher quality and it may be very difficult to determine what’s the highest quality option (without inflated prices).

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Sometimes you simply don’t have a choice. When your body changes, renewing your wardrobe becomes a necessity, not an option.

Same with my car: I kept it far too long, not out of frugality, but from disappointment with recent models and their absurd prices.

I also have this flaw of always waiting for the next version, the better one. By constantly looking ahead, I forget to enjoy today. Finding balance remains difficult.

One curious thing: stepping back from this forum has done me good. The constant comparison with others was darkening my contentment. Since then, I’ve rediscovered pleasure.

Comparison works both ways: here, it restrains spending; elsewhere, it pushes us to spend for appearances. The story continues :slightly_smiling_face:.

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31

But then you get value from it.

There’s even a saying: “comparison is the thief of joy”

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32

I stopped checking reddit (apart from GameDeals on thursday, but lately even that) and suddenly I have less urge to sell all my US etfs..

You should just skip a couple of threads and everything else shouldn’t be dramatic.

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33

You’ll get a ton of value out of this essay from Venkatesh Rao, then

34

I advice everyone to read Die with Zero. While it mostly is relevant to people that are (well beyond) FI, it did help me become more comfortable to spend money on ourselves and others (ie donations) while we can enjoy it. Hence, house rule when we ask ourselves if we should do a given trip/experience the answer is now always yes! Like fuck yes lets go!

That is how travel became chf 50k+ (by far biggest household expense post) and donations nearly 100k in 2025. It brings us joy.

on the other hand, our car and TV is 15+ years, I buy extreme little (but high quality) shoes and clothes. Is it about mindful and purposeful spending. What is important to you?

Sometimes I get all worked up like WTF, we spend nearly 200K per year!! (ex donations). Then, big breath, reminding myself that we (50s couple) have maybe 25-30 years left on this earth and that you cant take it with you. It is about getting to a big number or the experiences and freedom money can buy?

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image
image1724×1293 392 KB

Achievement unlocked!

  • Was it good? Yes
  • Was it worth the money? No
  • Would I buy it again? No
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36

Cinemon roll looking good - but wth is the drink next to it!??

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Gemini:

Das sieht nach einer fantastischen Kombination für einen Zvieri aus! Auf dem Bild ist Folgendes zu sehen:

  • Pistazien-Zimtschnecke: Eine klassische Zimtschnecke (Cinnamon Roll), die mit einer cremigen Pistazienglasur verfeinert und mit gehackten Pistazien bestreut wurde.
  • Matcha Latte: Das Getränk im Plastikbecher scheint ein Iced Matcha Latte zu sein (erkennbar an der leuchtend grünen Farbe oben und der helleren Milchschicht unten).

English:

That looks like a fantastic combination for a mid-afternoon snack (Zvieri)! The image shows:

  • Pistachio Cinnamon Roll: A classic cinnamon roll topped with a creamy pistachio glaze and sprinkled with chopped pistachios.
  • Matcha Latte: The drink in the plastic cup appears to be an Iced Matcha Latte (recognizable by the vibrant green color at the top and the lighter milk layer at the bottom).

I assume they give this away for free in communist Basel? :wink:

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If that is coffee, it’s the worst looking coffee I’ve ever come across.

Looks too transparent for coffee though.

Maybe it is iced coffee and weird reflections of the table AND the paper box make it look strange.

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39

Had some matcha vanilla ice tea this week. It was good, but only because of the sugar… Matcha is very instragram and tiktok trendy right now. For coffee: Very much a matter of taste.

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Indeed, our replies must have crossed.

I merely replied to @PhilMongoose’s post by pasting into Gemini and posting its answer here, but thought to myself: if this is a latte … ew. Looks more like a leftover Mojito poured into an ill prepared Long Island Ice Tea. :wink:

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