When saving money becomes an irrational obsession

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WendyW
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When saving money becomes an irrational obsession

Post by WendyW »

.
"Saving is usually portrayed as a virtue. But for some people, saving becomes an obsession. Long after they have achieved financial freedom and can afford whatever indulgences they desire, they continue to squirrel away cash."

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toto238
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Re: When saving money becomes an irrational obsession

Post by toto238 »

I think we see more than one of these here on BH. Like the person that has pensions and SS covering 100% of their yearly expenses AND has a 7-figure portfolio to boot and is worried if they can retire.
U5512
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Re: When saving money becomes an irrational obsession

Post by U5512 »

toto238 wrote:I think we see more than one of these here on BH. Like the person that has pensions and SS covering 100% of their yearly expenses AND has a 7-figure portfolio to boot and is worried if they can retire.
So frugal in their life time and they will be the richest guys in the graveyard. :shock:
"If you can enjoy Saturdays and Sundays without looking at stock prices, give it a try on weekdays." Warren E. Buffett.
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cheese_breath
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Re: When saving money becomes an irrational obsession

Post by cheese_breath »

U5512 wrote:
toto238 wrote:I think we see more than one of these here on BH. Like the person that has pensions and SS covering 100% of their yearly expenses AND has a 7-figure portfolio to boot and is worried if they can retire.
So frugal in their life time and they will be the richest guys in the graveyard. :shock:
Yeah, but what a fantastic funeral he can have.
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rai
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Re: When saving money becomes an irrational obsession

Post by rai »

I think it will be a big transition for me to change over from a saver to a spender (when I retire). While I do want to retire ASAP that is two distinct forces working against each other

As Soon (stop working as soon as I have enough money).

As Possible (meaning I need to have enough money and that mark keeps getting higher so I have the safety for all the what-if's that we don't know about such as SS (?), tax rate (?) or inflations or recessions (?) or life expectancy etc. ).

So the as possible is unknown (a lot of variables) so the As Soon keeps getting pushed back.

However, I don't see myself as really cutting back overly on my spending but rather extending my work years a bit longer.

I guess it's better to save too much than not enough so I err on the side of saving too much, but I surely not living like a miser.
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Dandy
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Re: When saving money becomes an irrational obsession

Post by Dandy »

Almost anything can become an obsession - ever seen people that are hoarders? They save old newspapers, and junk so much so they can't even walk in their house. I can see savings becoming an obsession - fear of running out, not knowing how long you will live, media hype on risk, economy, prices going up, etc. Hard to break decades of being frugal and then spend it down.

I can still move around my house despite a few old newspapers. But, still find making decisions tilted toward frugality vs more "normal" spending. Hey, nothing wrong with staying somewhat frugal but there is a time/age to let go a bit. There needs to be a x step recovery process for people who have plenty and are still being overly frugal. For me it has been trying to increase my standard of living a bit more each year - at least. e.g. after our daughter's wedding (a frugal man's nightmare) we will upgrade from frugal flip phones to smart phones :happy
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Re: When saving money becomes an irrational obsession

Post by rai »

I knew an older doc, he had been working for 50 years and was forced to retire at 80+ years old. But he could pinch pennies and worried about how much he was making (even though he had multi-millions) and never really spent much was driving a 15 year old car etc. So he died a few years later and his kids are fighting over the inheritance. My point to him when he was alive, why waste his few golden years working and earning when he had enough for 10 lifetimes (at his abbreviated age 80+ there was only going to be a limited number of years).
"Life is what happens to you while you're busy making other plans" - John Lennon. | | "You say that money, isn't everything | But I'd like to see you live without it." - Silverchair
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InvestorNewb
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Re: When saving money becomes an irrational obsession

Post by InvestorNewb »

I can understand people who are like that who lived through the depression. Habits get engrained and it's hard to break out of them.
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aj44
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Re: When saving money becomes an irrational obsession

Post by aj44 »

We had a lesson every Friday afternoon in 4th grade for about 10 weeks where we could answer math questions for "points". At any time during the exercise we could cash in the points to play with toys/computer programs at various point values, I learnt there were 3 types of people:

1. Those that cashed their points as soon as possible, never having enough for the best games (most kids)


2. Those that spent the first few weeks building a points "bank" and then spent the last several weeks playing the best games (this has the fewest number of people, I was one of them)

3. Those that couldn't stop answering questions for points, never playing any of the games.


I often think of this exercise as it taught me more in elementary school than anything else about myself and others.
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Re: When saving money becomes an irrational obsession

Post by Ybsybs »

I'm struggling with this. My family's net worth has reached a point where all the calculations show we won't be able to spend it all at our current rate. Logically, it makes sense to raise our standard of living a bit. But so much time avoiding lifestyle creep makes it challenging to change. We don't have enough to just go from frugal to money-is-no-object. I think there's skill involved in learning to spend a bit more without spending *a lot* more and destroying the carefully built financial security.
U5512
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Re: When saving money becomes an irrational obsession

Post by U5512 »

Ybsybs wrote:I'm struggling with this. My family's net worth has reached a point where all the calculations show we won't be able to spend it all at our current rate. Logically, it makes sense to raise our standard of living a bit. But so much time avoiding lifestyle creep makes it challenging to change.
I am currently planning for early retirement and for simplicity sake let's just say my monthly expenses TOTAL is $3k. I then add in another $300 extra per month for "miscellaneous" spending for a total of $3.3K a month. If I don't spend that $300 bucks away, then great I get to keep it in my savings account.

You can try to do the same thing with your retirement planning. :happy
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sambb
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Re: When saving money becomes an irrational obsession

Post by sambb »

to each his own.. it doesn't make sense to me to have millions of dollars in investments, but drive an old camry or a fit. But it makes sense to some.. can't figure that out
heyyou
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Re: When saving money becomes an irrational obsession

Post by heyyou »

Morgan Housel wrote that most people are bad at handling money, so if you aspire to have money, you have to do something different than what they do, including not caring about what others think about your choices of car, home, vacations, etc. Since it is my money, how much attention should I pay to how others think that I should be spending it?

My saving resulted in my retiring at 55 into the best years of my life. While I apologize for not better supporting the consumer economy, I do thank those who purchased from the thousands of businesses where I am an indirect stockholder. When you go to work on Monday, tell everyone there that I said "hi" and that I'm enjoying retirement.

Just joking: I'm the frugal one here, it's some of the other posters who are the misers.
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Re: When saving money becomes an irrational obsession

Post by nisiprius »

Of course miserliness is a problem, but it's a psychological problem, not an investing problem. And "I don't want to run out of money, I don't want to die with unspent money, and I don't want to buy anything from an insurance company" is not a solution.

By the way, I still find Nathaniel Hawthorne's retelling of the King Midas story, The Golden Touch, to be wonderfully done--inventive in detail and quite touching.
He took one of the nice little trouts on his plate, and, by way of experiment, touched its tail with his finger. To his horror, it was immediately transmuted from an admirably fried brook-trout into a gold-fish, though not one of those gold-fishes which people often keep in glass globes, as ornaments for the parlor. No; but it was really a metallic fish, and looked as if it had been very cunningly made by the nicest goldsmith in the world. Its little bones were now golden wires; its fins and tail were thin plates of gold; and there were the marks of the fork in it, and all the delicate, frothy appearance of a nicely fried fish, exactly imitated in metal. A very pretty piece of work, as you may suppose; only King Midas, just at that moment, would much rather have had a real trout in his dish than this elaborate and valuable imitation of one.

"I don't quite see," thought he to himself, "how I am to get any breakfast!"
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Re: When saving money becomes an irrational obsession

Post by 3CT_Paddler »

There are ways to achieve a healthier perspective on money and its purpose... giving it away to a deserving charity is a start.
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Maynard F. Speer
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Re: When saving money becomes an irrational obsession

Post by Maynard F. Speer »

Wasn't Warren Buffett a $billionaire many times over before he even bought a new car?

I think it's got to be in your DNA a bit - I find having more money than I'll need is a much better feeling than spending it .. It gives you two things you can't really put a price on: freedom and security

Maybe the two things every life-form on this planet strives for? .. And hopefully you've got either a family or a cause you care about to leave it to and give your existence meaning .. The thing every human strives for
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Pajamas
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Re: When saving money becomes an irrational obsession

Post by Pajamas »

Some people play crossword puzzles or collect coins, others bicycle, some knit, many people watch television. For some, saving money is what they enjoy doing, and it can be a goal unto itself. That is not necessarily bad. There is no requirement that money must be spent. When they die, someone else can spend it.
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Toons
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Re: When saving money becomes an irrational obsession

Post by Toons »

U5512 wrote:
toto238 wrote:I think we see more than one of these here on BH. Like the person that has pensions and SS covering 100% of their yearly expenses AND has a 7-figure portfolio to boot and is worried if they can retire.
So frugal in their life time and they will be the richest guys in the graveyard. :shock:

+1 :happy
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slow n steady
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Re: When saving money becomes an irrational obsession

Post by slow n steady »

toto238 wrote:I think we see more than one of these here on BH. Like the person that has pensions and SS covering 100% of their yearly expenses AND has a 7-figure portfolio to boot and is worried if they can retire.
Heck, I'm planning on being in that position when I retire. In my plans it doesn't have me worrying if I can retire, so you're obviously not not talking about people like me. :D
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Re: When saving money becomes an irrational obsession

Post by cottonseed1 »

3CT_Paddler wrote:There are ways to achieve a healthier perspective on money and its purpose... giving it away to a deserving charity is a start.
I agree. Given that there is a significant drop off in increased utility from spending beyond an upper middle class lifestyle, I think it makes a lot of sense to die with money left over. Just because an individual does not consume the money certainly does not mean it goes to waste. Deserving charities and their recipients will likely derive far greater happiness from spending said money than our fortunate saver will.
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zaboomafoozarg
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Re: When saving money becomes an irrational obsession

Post by zaboomafoozarg »

sambb wrote:to each his own.. it doesn't make sense to me to have millions of dollars in investments, but drive an old camry or a fit. But it makes sense to some.. can't figure that out
The Fit is pretty sweet though. If I had millions of dollars I would probably trade in my old one for a new one.
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dratkinson
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Re: When saving money becomes an irrational obsession

Post by dratkinson »

I believe "When saving money becomes an irrational obsession" is defined by those who would spend more, not by those who would save more. In this I'm reminded of my worthless brother's many schemes when he thought I was saving too much.

If this issue is not a problem for the savers, then it should also not be a problem for others as the (over) savers are less likely to be a drain on society.

Overly concerned spendy relatives will get their share from the saver's estate. The state will get its share from the idiot tax on spenders, or from escheatment. Until then, both should wait quietly... so as not to annoy the savers and risk being cut from the will.
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Re: When saving money becomes an irrational obsession

Post by letsgobobby »

I'm not sure it's totally irrational. My dad grew up during the Depression, when stocks actually did decline by 90% in nominal terms and didn't recover for decades. If that were to happen again, a lot of us would rethink our definitions of rational and irrational.
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Re: When saving money becomes an irrational obsession

Post by littlebird »

dratkinson wrote: If this issue is not a problem for the savers, then it should also not be a problem for others as the (over) savers are less likely to be a drain on society.
It can be a problem in a marriage when what used to be a mutual interest in saving for an early retirement becomes an irrational obsession to provide for any eventuality, no matter how unlikely, on the part of just one of the already-elderly couple. This is especially true where the other partner's more immediate needs are being sacrificed. Folies do not always come a deux.
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Abe
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Re: When saving money becomes an irrational obsession

Post by Abe »

Maynard F. Speer wrote: I think it's got to be in your DNA a bit - I find having more money than I'll need is a much better feeling than spending it .. It gives you two things you can't really put a price on: freedom and security
I can relate to this. Everythings a tradeoff. You can have money or you can have the car, the vacation or whatever. I would rather have the money. I don't know why I'm like that, but I get more enjoyment out of having money than spending money.
Slow and steady wins the race.
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Re: When saving money becomes an irrational obsession

Post by Workinghard »

Abe wrote:
Maynard F. Speer wrote: I think it's got to be in your DNA a bit - I find having more money than I'll need is a much better feeling than spending it .. It gives you two things you can't really put a price on: freedom and security
I can relate to this. Everythings a tradeoff. You can have money or you can have the car, the vacation or whatever. I would rather have the money. I don't know why I'm like that, but I get more enjoyment out of having money than spending money.
My dh would take the car. I'd rather have the money, but he helps me to have balance. And it's not about hoarding money, but about be able to use it to help others. A while back we gave a young waitress with a 2 year old child a $100 tip. She was married but worked evenings so she could be with the baby during the day. We got there at closing time, and she could have locked the doors, but she didn't.
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Re: When saving money becomes an irrational obsession

Post by NotWhoYouThink »

As long as your frugality affects no one but yourself it is not a problem. If you have a 7 figure investment account and prefer to stay at Motel 6 30 miles from your vacation destination instead of the Hilton at easy walking distance, that's fine. It is not particularly laudable, but it's fine. On the other hand, if you refuse to pay for home health aids because their hourly rate is more than you made per week at your first job, and the result is that your spouse gets only the minimal care your geriatric self can provide instead of being kept comfortable in his/her last months, that's a sickness.
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Re: When saving money becomes an irrational obsession

Post by kjvmartin »

This reminds me of the wealthy old relative in the family. He had a rotary dial phone until around 2009 because there was a small surcharge for pulse dialing.

His goal was to leave an inheritance for his children. He owned 4 pair of underwear and 2 bath towels. His 1 bedroom condominium was purchased for $30,000 cash around 1979 and had the same furniture, decorations, appliances, and television when he moved to the old folks home in 2013.

A retired public servant with a healthy pension, he purchased a new Town Car every four years and put the rest into dividend stocks. His only regret was that he was just shy of $1,000,000 before he died. Shortly before passing, he requested his executor to wait until after the next dividend payments came to liquidate his investments. He said saving money was like a game to him.
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Re: When saving money becomes an irrational obsession

Post by joe8d »

toto238 wrote:I think we see more than one of these here on BH. Like the person that has pensions and SS covering 100% of their yearly expenses AND has a 7-figure portfolio to boot and is worried if they can retire.
:)
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Re: When saving money becomes an irrational obsession

Post by Lynette »

.....
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Pajamas
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Re: When saving money becomes an irrational obsession

Post by Pajamas »

kjvmike wrote:This reminds me of the wealthy old relative in the family. He had a rotary dial phone until around 2009 because there was a small surcharge for pulse dialing.
That hits a little too close to home. I kept the rotary dialing until they stopped charging for it and forced me to switch because they no longer supported it. I think that was more than fifteen years ago, however, and certainly more than ten.

Fortunately my phone had a switch that would cause it to make either rotary or pulse dialing sounds, so I didn't have to buy a new one. :beer
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Re: When saving money becomes an irrational obsession

Post by Jerry55 »

Seems to be a common problem.

Just last week, I posted "Saving vs Spending" with the same issues.
I've been retired for 2 1/2 years now, and am finally getting over this mind-set, partially.
I grew up poor (I didn't know it then, but enjoyed life) and I'd like to give my children a better start.
I'm no "TRUMP", but if I can pass down 6 figures to each of my 3 children, I'll be happy.
Over the past 4 years, I've gone to Irvine, CA to help my daughter in college, and stayed at 2 star hotels.
I finally got to the point (2 yrs ago) to enjoy life more, and stay at Embassy Suites instead. Did it thru
Travelocity, spent about 40% more, but was worth it. We can all splurge a little bit, and enjoy our savings.
Some do it more or less than others, but hopefully we can all enjoy the fruits of our decades of labor.
BTW, LadyGeek moved my post from this forum to the "Not Investing Forum". I suspect this will happen here.
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Re: When saving money becomes an irrational obsession

Post by The Wizard »

I think that even those of us who are retired would prefer to see their investment portfolio grow a bit each year, even while having $100,000 a year income from various sources.
The idea of spending your portfolio down to 10% of its starting value by age 90 is a scary scenario.
I think it's quite possible to manage your finances comfortably while not being obsessively frugal...
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Re: When saving money becomes an irrational obsession

Post by IlliniDave »

I would say if the person is not unhappy, who cares? I have an acquaintance who is obsessed with creating new day lily hybrids. It's his hobby. He likes it. He can't take them with him when he dies. Whether it is rational or irrational is irrelevant.

While I'm sure there are pathological cases, I am equally certain there are significant numbers of people who simply enjoy being frugal and consequently save a lot relatively speaking, and amass wealth. Whether it is rational or irrational is irrelevant. Whether they someday spend it all or leave it behind for their cat is irrelevant. They are living in a way that makes them happy.

There is no natural law that says happiness and spending money are inextricably linked. There is no natural law that says frugality and misery are inextricably linked.

It's probably best to realize that trying to fit another person's actions into one's personal value system doesn't always produce an accurate picture, and money/wealth/consumption is one of those topics most prone to error.
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Re: When saving money becomes an irrational obsession

Post by Index Fan »

IlliniDave wrote:I would say if the person is not unhappy, who cares? I have an acquaintance who is obsessed with creating new day lily hybrids. It's his hobby. He likes it. He can't take them with him when he dies. Whether it is rational or irrational is irrelevant.
Excellent point.

For every miser in the US, there must be a large amount of spendthrifts. I see them every day. They often ruin their family's well-being by having no money on-hand. They often cannot pay their bills on time. They cause strife among family and friends trying to borrow money that will never be paid back. Many are a couple of paychecks away from homelessness. I'd say the latter are a far more serious problem.

It is the great American paradox- people overseas often see America as full of rich people, but the truth is that the majority of citizens here have little clue about personal finance.
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Re: When saving money becomes an irrational obsession

Post by TheTimeLord »

toto238 wrote:I think we see more than one of these here on BH. Like the person that has pensions and SS covering 100% of their yearly expenses AND has a 7-figure portfolio to boot and is worried if they can retire.
Maybe they aren't old enough to collect SS and pensions yet?
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Re: When saving money becomes an irrational obsession

Post by staythecourse »

This may be a question for the minority, but what happens if you make more money then your desires to buy things? My wife and I fall into that category. We save the entire paycheck from the higher earner as we can just live off the lower earner. It isn't like we TRY to live off one income it just works out that way. The answer should be to take more time off, but what if you like your work as well?

This is the situation we are in so I don't see any other BETTER option then just saving it. That is why we save so much. It isn't like just because we have all this extra money we are the types to go, "Well I guess we could just buy another car".

We like certain things, but are not overly materialistic folks. What to do then? It isn't like we are going to tell our employers, "I don't need the extra salary so keep it for yourself"

Good luck.
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Re: When saving money becomes an irrational obsession

Post by Abe »

I agree with staythecourse. Just because you have extra money doesn't mean you have to spend it. There is no law that says you have to spend it.
Slow and steady wins the race.
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Re: When saving money becomes an irrational obsession

Post by cheese_breath »

Abe wrote:I agree with staythecourse. Just because you have extra money doesn't mean you have to spend it. There is no law that says you have to spend it.
+1 Even though some seem to have an obsession to make sure it all gets spent before they die.
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Maynard F. Speer
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Re: When saving money becomes an irrational obsession

Post by Maynard F. Speer »

To get philosophical, I think the point could be made that the person saving money won't ever really be the person spending it

Just as possessions, experiences and even cherished memories get washed away in time, investing is a process and a journey, not a destination - peace of mind is the pay-off
"Economics is a method rather than a doctrine, an apparatus of the mind, a technique of thinking, which helps its possessor to draw correct conclusions." - John Maynard Keynes
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Re: When saving money becomes an irrational obsession

Post by surfstar »

I agree with the donating it:

I would like to offer my services - for those of you who have more money than you can reasonably spend, I would like to help. I will take pictures of all the wonderful things that your money will enable me to do, while you continue to work. Rest assured that your money will be well spent and having the time of your life.

:D
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backpacker
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Re: When saving money becomes an irrational obsession

Post by backpacker »

Money is like food. Most Americans overeat. Most Americans overspend. A small minority have anorexia, eating so little that it damages their health. A small minority have financial anorexia, spending so little that it seriously damages their relationships with other people and leaves them missing out on important life experiences.

A few odd ducks learn to actually like healthy food and exercise. Confronted with the choice between cheesy fries and a plate of cut vegetables, they would rather have the vegetables. And this even if cheesy fries are well within their caloric "budget". Years of eating vegetables has changed what tastes good to them. Vegetables really do taste better to them than cheesy fries.

To the average person, this looks like insanity or self-flagellation. You can't really like vegetables more than curly fries. You can't really like going for long evening runs. Life is short, so enjoy it! Stop depriving yourself. Eat curly fries. You might be hit by a bus tomorrow.

What the average person fails to understand is that tastes can be changed. They are, in the long run, a choice. Some people have chosen to like vegetables, so are not depriving themselves when they eat vegetables instead of less "enjoyable" options. The same goes for spending. The average person can't understand preferring a Toyota to a Mercedes when you can easily afford either one. But a few odd ducks have learned to actually like living modestly. After years of living with simple things, they see no point to the "life upgrades" average people fixate on.

Being wealthy is having more money than you know what to do with. Most people never get there because they always know what to do with more money. Wants always expand as fast as their means. For those who have learned to like simple things, being wealthy is much easier. Not being able to spend all your money isn't a problem. It means that you've arrived.
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surfstar
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Re: When saving money becomes an irrational obsession

Post by surfstar »

I exercise so I can eat those cheesy fries!
staythecourse
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Re: When saving money becomes an irrational obsession

Post by staythecourse »

Maynard F. Speer wrote:Just as possessions, experiences and even cherished memories get washed away in time, investing is a process and a journey, not a destination - peace of mind is the pay-off
Very eloquent. Not sure about others, but the end of the statement describes me. I get much more happiness not from buying material things, but the peace of mind saving gives me. The power to say "F- you" to others is priceless. Money for me is a currency of personal freedom. The more you have the more power for personal freedom you have.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
mptfan
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Re: When saving money becomes an irrational obsession

Post by mptfan »

backpacker wrote:Money is like food. Most Americans overeat. Most Americans overspend. A small minority have anorexia, eating so little that it damages their health. A small minority have financial anorexia, spending so little that it seriously damages their relationships with other people and leaves them missing out on important life experiences.

A few odd ducks learn to actually like healthy food and exercise. Confronted with the choice between cheesy fries and a plate of cut vegetables, they would rather have the vegetables. And this even if cheesy fries are well within their caloric "budget". Years of eating vegetables has changed what tastes good to them. Vegetables really do taste better to them than cheesy fries.

To the average person, this looks like insanity or self-flagellation. You can't really like vegetables more than curly fries. You can't really like going for long evening runs. Life is short, so enjoy it! Stop depriving yourself. Eat curly fries. You might be hit by a bus tomorrow.

What the average person fails to understand is that tastes can be changed. They are, in the long run, a choice. Some people have chosen to like vegetables, so are not depriving themselves when they eat vegetables instead of less "enjoyable" options. The same goes for spending. The average person can't understand preferring a Toyota to a Mercedes when you can easily afford either one. But a few odd ducks have learned to actually like living modestly. After years of living with simple things, they see no point to the "life upgrades" average people fixate on.

Being wealthy is having more money than you know what to do with. Most people never get there because they always know what to do with more money. Wants always expand as fast as their means. For those who have learned to like simple things, being wealthy is much easier. Not being able to spend all your money isn't a problem. It means that you've arrived.
I have to say that this is one of the most wise and insightful posts I have read in a long time. Well said.
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FelixTheCat
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Re: When saving money becomes an irrational obsession

Post by FelixTheCat »

InvestorNewb wrote:I can understand people who are like that who lived through the depression. Habits get engrained and it's hard to break out of them.
I also understand the people that don't get a thrill out of spending money. I would rather hike, bike or go to the beach. I don't need nor want the latest toy.
Felix is a wonderful, wonderful cat.
randomguy
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Re: When saving money becomes an irrational obsession

Post by randomguy »

mptfan wrote:
backpacker wrote:Money is like food. Most Americans overeat. Most Americans overspend. A small minority have anorexia, eating so little that it damages their health. A small minority have financial anorexia, spending so little that it seriously damages their relationships with other people and leaves them missing out on important life experiences.

A few odd ducks learn to actually like healthy food and exercise. Confronted with the choice between cheesy fries and a plate of cut vegetables, they would rather have the vegetables. And this even if cheesy fries are well within their caloric "budget". Years of eating vegetables has changed what tastes good to them. Vegetables really do taste better to them than cheesy fries.

To the average person, this looks like insanity or self-flagellation. You can't really like vegetables more than curly fries. You can't really like going for long evening runs. Life is short, so enjoy it! Stop depriving yourself. Eat curly fries. You might be hit by a bus tomorrow.

What the average person fails to understand is that tastes can be changed. They are, in the long run, a choice. Some people have chosen to like vegetables, so are not depriving themselves when they eat vegetables instead of less "enjoyable" options. The same goes for spending. The average person can't understand preferring a Toyota to a Mercedes when you can easily afford either one. But a few odd ducks have learned to actually like living modestly. After years of living with simple things, they see no point to the "life upgrades" average people fixate on.

Being wealthy is having more money than you know what to do with. Most people never get there because they always know what to do with more money. Wants always expand as fast as their means. For those who have learned to like simple things, being wealthy is much easier. Not being able to spend all your money isn't a problem. It means that you've arrived.
I have to say that this is one of the most wise and insightful posts I have read in a long time. Well said.
Nobody cares if you eat fries or veggies. The issue is when you want to eat veggies but choose to eat fries because they are .50 cheaper despite the fact that you have 3 million bucks. I always wonder how much the people that claim to like living modestly really do. They all seem obessed with what their neighbors drive and how they spend money. You know sort of like that anorexic and the cheeseburger:)

Most people find some middle ground. My parents don't like cars so they drive econoboxes. They do like to travel so they so the spend 15k/yr on that. For them cutting the travel budget to 10k and driving a BMW would reduce the quality of their life. They have neighbors that prefer the opposite approach. Either one is fine. What isn't fine is doing both (if you don't have the money) or neither (and being jealous of what other people are doing).

If you read the article they are not talking about people who enjoy living frugally. Nobody cares how they spend their money. They are talking about people whose money behavior is adversely affecting their lives. You can google "Sudden Wealth Syndrome" for another one of these things that affect few people and seems like a nonproblem. But if you are the one suffering from it, it is not a trivial issue. And no just giving all your money away isn'ta solution.
jasc15
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Re: When saving money becomes an irrational obsession

Post by jasc15 »

kjvmike wrote:This reminds me of the wealthy old relative in the family. He had a rotary dial phone until around 2009 because there was a small surcharge for pulse dialing.
I have a DOCSIS 2.0 cable modem which limits my download speed to 20 MBPS because I refuse to rent a DOCSIS 3.0 from Time Warner for $7/month. :moneybag
centrifuge41
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Re: When saving money becomes an irrational obsession

Post by centrifuge41 »

jasc15 wrote:I have a DOCSIS 2.0 cable modem which limits my download speed to 20 MBPS because I refuse to rent a DOCSIS 3.0 from Time Warner for $7/month. :moneybag
If you're happy with your internet performance for now, good! Just note that the modem may go out of support one day, and your ISP might pull the plug. Comcast doesn't support 5000 series Motorola modems now.

Gotta live today, but also plan for the future :D
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ryuns
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Re: When saving money becomes an irrational obsession

Post by ryuns »

zaboomafoozarg wrote:
sambb wrote:to each his own.. it doesn't make sense to me to have millions of dollars in investments, but drive an old camry or a fit. But it makes sense to some.. can't figure that out
The Fit is pretty sweet though. If I had millions of dollars I would probably trade in my old one for a new one.
It really speaks to the fact that people should be willing to skimp and save on things that don't bring them joy. For many, like myself, the key to avoiding undue lifestyle inflation is trying to figure out what would bring joy and what would just add stress. Our #2 car was hit and totaled (without us in it, thankfully), so we're living with 1 for a while (a 15 year old Civic). One of the cars we're thinking about getting is a new Fit. Not because it's the nicest car on the lot, but because it's pretty much what we need and the marginal improvement in more expensive cars doesn't really add much value in our minds. I certainly don't begrudge anyone who does enjoy a pricier car though, if they enjoy it of course!
An inconvenience is only an adventure wrongly considered; an adventure is an inconvenience rightly considered. -- GK Chesterton
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