How do 40 year olds decide what they can afford?

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scubadiver
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Re: How do 40 year olds decide what they can afford?

Post by scubadiver » Wed Apr 10, 2019 2:46 pm

I call my mom and tell her that dad said I can afford to do X, but only if she agrees that I can afford to do it as well. Then I wait to hear her response.

RobLyons
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Re: How do 40 year olds decide what they can afford?

Post by RobLyons » Wed Apr 10, 2019 2:51 pm

miamivice wrote:
Tue Apr 09, 2019 7:43 pm
As I approach age 40, I think that I need a new way of determining what extras (i.e., toys) can I afford.

In my teens, it was easy. I saved half, and I spent half. Since my expenses were zero, I spent 1/2 on whatever I wanted.

In my twenties, it was easy. I didn't have disposable income for the most part. Everything went to recurring bills or retirement savings. There wasn't much left after that.

My thirties were easy too. In our early thirties, my wife and I were dual income no kid, and made a ton. I bought anything I wanted, saved a huge amount toward retirement, and had extra left over for taxable.

Now in my forties, it's hard. I have a large amount of savings, which I would rather not tap. Most of my extra income is going to make extra payments on a second mortgage. Likely, we will have more than enough in retirement. Part of me feels spend today, part of me feels that toys get used for a while and then go by the wayside.

How do others in their 40's make decisions about what they can afford with regards to "toys", gadgets, and other fun but unnecessary things?

By toys, I mean RVs, boats, drones, bikes, cars (above and beyond basic transportation), phones (above and beyond what is necessary for daily life), etc. Anything that is sort of pricey as well as not necessary.

You spent your entire income in your 20s saving for retirement and paying bills? Sounds like it's time to play catch up!
These first world problems affect 0.01% of the population. You are very lucky sir!
"Great parenting sets the foundation for a better world"

smitcat
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Re: How do 40 year olds decide what they can afford?

Post by smitcat » Wed Apr 10, 2019 3:16 pm

Admiral wrote:
Wed Apr 10, 2019 2:42 pm
smitcat wrote:
Wed Apr 10, 2019 2:28 pm
Admiral wrote:
Wed Apr 10, 2019 1:48 pm
miamivice wrote:
Tue Apr 09, 2019 7:43 pm
As I approach age 40, I think that I need a new way of determining what extras (i.e., toys) can I afford.

In my teens, it was easy. I saved half, and I spent half. Since my expenses were zero, I spent 1/2 on whatever I wanted.

In my twenties, it was easy. I didn't have disposable income for the most part. Everything went to recurring bills or retirement savings. There wasn't much left after that.

My thirties were easy too. In our early thirties, my wife and I were dual income no kid, and made a ton. I bought anything I wanted, saved a huge amount toward retirement, and had extra left over for taxable.

Now in my forties, it's hard. I have a large amount of savings, which I would rather not tap. Most of my extra income is going to make extra payments on a second mortgage. Likely, we will have more than enough in retirement. Part of me feels spend today, part of me feels that toys get used for a while and then go by the wayside.

How do others in their 40's make decisions about what they can afford with regards to "toys", gadgets, and other fun but unnecessary things?

By toys, I mean RVs, boats, drones, bikes, cars (above and beyond basic transportation), phones (above and beyond what is necessary for daily life), etc. Anything that is sort of pricey as well as not necessary.
Well you already have two mortgages, doesn't that count? I think you can make a distinction between a drone (1.5k) and a boat (30 times that) and an RV (whatever those cost). If you can pay for it with cashflow and no debt, and are saving enough, then buy what brings you joy. But just keep in mind that almost all studies show paying for experiences and not more "stuff" brings the most happiness. The drone will break, and so will the boat.
"The drone will break, and so will the boat."
Our boat(s) brought us a huge amount of experiences and memories - everything breaks , just want to make sure you like whatever you do.
I'm sure it/they did. The point is stuff breaks, and then costs money to fix (or replace). If one has the money to fix/replace, then that seems like a fine personal choice. Not everything breaks. Travel and vacations don't. Doesn't mean that don't cost money, they are just not ongoing expenses (unless one continues to purchase them). Buying a car and walking are both means of transportation. One costs more. Unless the other required hip replacement ;-)
"Not everything breaks. Travel and vacations don't."
Everything breaks, all experiences cost money - some vey little , some a whole bunch and everywhere in between.
Typically some of the most valuable and rewarding experiences come from something that has required a good bit of 'investing'.

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Go Blue 99
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Re: How do 40 year olds decide what they can afford?

Post by Go Blue 99 » Wed Apr 10, 2019 4:11 pm

We ramped up spending in my early 40s, when I realized we were well on target to our retirement goals. But I'm not an impulse buyer. When I'm considering something, I'll spend months researching it. I'll spend time on message boards, coupon sites, Slickdeals, etc in order to get the best deal on something I want. So it's rare that I'll regret a purchase. As I've gotten older, I've tended to spend more on higher quality items or travel/food experiences, but buying fewer times.

gr7070
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Re: How do 40 year olds decide what they can afford?

Post by gr7070 » Wed Apr 10, 2019 4:42 pm

Determine a reasonable amount for a personal allowance and/or house allowance that can be used for added or bigger discretionary spending.

Determine the size in part based upon what things you might want to buy. Do you want to save up for $5000 bikes or $50,000 vehicles, etc.

Once the funds are available in your special allowance(s) spend away with no guilt!

longterm100
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Re: How do 40 year olds decide what they can afford?

Post by longterm100 » Wed Apr 10, 2019 6:26 pm

I’m in a similar situation and wrestle with this all
Of the time. Giving me a month to decide if I really want want something usually works. Also ‘unplugging’ from the consumerism society e.g. a weekend out doors, time with friends etc. usually helps as well.

I see this as more of a values and restraint battle e.g. what do you value in life and how much restraint do you have?

Misciagno
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Re: How do 40 year olds decide what they can afford?

Post by Misciagno » Thu Apr 11, 2019 2:57 am

GCD wrote:
Tue Apr 09, 2019 8:20 pm
My wife and I kept separate finances during the first 6 months of marriage. Then we just decided that was silly and went all in. But one of the side effects of combining all our finances was I felt reluctant to splurge on toys with "our" money. It was just a mental block. I found it nearly impossible to spend on anything that wasn't a need.

What we worked out was that I got a $100 per week "allowance" that included coffee and lunches. Anything I saved up for I could buy and not feel like I was frivolously spending "our" money. It also had the benefit that I was motivated to be frugal on the lunches and coffee so I could build up my toy money quicker.

Just work out your "allowance" to be whatever it is within your budget. Then spend it freely. Obviously it's just a psychological game. If you are in your 40s and in financially sound shape then it's not like you have a spendthrift mindset.
+1

I’m late 40s, and my wife and I pool our income into a joint account, but auto transfer $300 each pay period (every 2 weeks) into our own accounts to use as we wish. We still max our retirement accounts and now save plenty in 529s and taxable as well, with well over $1M in total savings and investments. That said, we don’t spend frivolously - we do a nice vacation or two each year with the kids, but are very careful about buying “stuff.”

One suggestion, and what I plan after retirement in a few years, is to go back to my high school passion for buying beat up classic cars, fixing them up and selling at a profit. That will scratch the itch of shopping for and buying cool cars, but let me make a few bucks off them as well while having fun.
"History doesn’t repeat itself, but it often rhymes." -- Mark Twain

VAslim16
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Re: How do 40 year olds decide what they can afford?

Post by VAslim16 » Thu Apr 11, 2019 7:17 am

JD2775 wrote:
Tue Apr 09, 2019 7:47 pm
I am in a different boat than you are.... I didn't save in my 20's and barely saved in my early/mid 30's, and certainly didn't save in my teens. It was only in my late 30's that I woke up and began saving in earnest. As I have gotten older (44 now) I find I question purchasing things much much more than I used to, even though I can afford them much easier than years past. Especially with larger purchases, or new clothes etc. I have gotten more financially conservative all the way around in my 40's
This is me also. The one thing I spend on is motorcycles. Love them and luckily they don't depreciate too much when I sell. Other than those I really try and save AMAP since I didn't start as early as I should have.

Nissanzx1
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Re: How do 40 year olds decide what they can afford?

Post by Nissanzx1 » Thu Apr 11, 2019 7:25 am

I’m 40, I only buy what I have the cash for. The only “Toy” I really really want is a larger retirement fund balance.

I’d consider dumping some mortgage debt. I think it’s time to get at least down to one mortgage.

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Meaty
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Re: How do 40 year olds decide what they can afford?

Post by Meaty » Thu Apr 11, 2019 8:02 am

Nissanzx1 wrote:
Thu Apr 11, 2019 7:25 am
I’m 40, I only buy what I have the cash for. The only “Toy” I really really want is a larger retirement fund balance.

I’d consider dumping some mortgage debt. I think it’s time to get at least down to one mortgage.
I’m not 40, but this is spot on.
"Discipline equals Freedom" - Jocko Willink

thx1138
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Re: How do 40 year olds decide what they can afford?

Post by thx1138 » Thu Apr 11, 2019 8:30 am

First I think you need to take a hard look at what you are trying to “afford” here - it is a list of fairly pointless amusements. No one that I’m aware of has ever said on their death bed “I should have bought a drone...”

What first and foremost I look to afford is more time. Most folks I see in their 40s have a lot of toys laying around with no time to enjoy them. Time is money it turns out and toys cost money and so pervsely they cost the very time you’d need to enjoy them in the first place. There is of course the separate discussion to be had about toys vs. experiences/friends/family but even if we assume a priority to toys a prerequisite is still time to play with them.

So I buy fewer toys but I buy more time through reduced work hours. When I see a toy I usually view it as a time sink first - just using the thing is going to take precious time. I’ve got a long list of things I already enjoy without said toy so which of those enjoyable things am I going to stop doing or reduce doing to create time to dork around with the new shiny toy. Usually in this light the sheen quickly comes off the appeal of the toy.

As to determining what I can afford (be it time or toys) it’s the same as any sort of cash flow analysis. We’ve always prioritized filling all our tax advantaged space before anything else and are extremely fortunate to be able to do that consistently. After that I track our progress and projected retirement success under a variety of scenarios with things like cfiresim and the like. Right now that looks extremely rosey so no need to be piling much into taxable and that leaves the reminder to buy back time from work. Every so often a small chunk goes to a toy but the dominant “expense” is the time I buy back.

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Re: How do 40 year olds decide what they can afford?

Post by capsaicinguy » Thu Apr 11, 2019 8:40 am

GCD wrote:
Tue Apr 09, 2019 8:20 pm
What we worked out was that I got a $100 per week "allowance" that included coffee and lunches. Anything I saved up for I could buy and not feel like I was frivolously spending "our" money. It also had the benefit that I was motivated to be frugal on the lunches and coffee so I could build up my toy money quicker.

Just work out your "allowance" to be whatever it is within your budget. Then spend it freely. Obviously it's just a psychological game. If you are in your 40s and in financially sound shape then it's not like you have a spendthrift mindset.
This is what we do. Anything beyond what is covered by the money in our allowance account is a discussion and will likely just need to be delayed until the person has enough to just buy it. We just have designated savings accounts at Ally to keep the money separate and easy to track.

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Re: How do 40 year olds decide what they can afford?

Post by WS1 » Thu Apr 11, 2019 9:20 am

White Coat Investor wrote:
Tue Apr 09, 2019 7:58 pm
Save enough to reach your goals spend the rest.
I think knowing the answer to that statement is the OPs struggle. Many of the commenters are offering helpful ways to thoughtfully evaluate and restrain your desires, a key element of even moderate frugality and a healthy balance sheet. The message I've internalize from perhaps too much time on this site, especially as someone just under 40, is the future is long and unknowable and you must save as much as possible; at what age will I be able to say "the plan should work"?

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Re: How do 40 year olds decide what they can afford?

Post by smitcat » Thu Apr 11, 2019 9:44 am

Misciagno wrote:
Thu Apr 11, 2019 2:57 am
GCD wrote:
Tue Apr 09, 2019 8:20 pm
My wife and I kept separate finances during the first 6 months of marriage. Then we just decided that was silly and went all in. But one of the side effects of combining all our finances was I felt reluctant to splurge on toys with "our" money. It was just a mental block. I found it nearly impossible to spend on anything that wasn't a need.

What we worked out was that I got a $100 per week "allowance" that included coffee and lunches. Anything I saved up for I could buy and not feel like I was frivolously spending "our" money. It also had the benefit that I was motivated to be frugal on the lunches and coffee so I could build up my toy money quicker.

Just work out your "allowance" to be whatever it is within your budget. Then spend it freely. Obviously it's just a psychological game. If you are in your 40s and in financially sound shape then it's not like you have a spendthrift mindset.
+1

I’m late 40s, and my wife and I pool our income into a joint account, but auto transfer $300 each pay period (every 2 weeks) into our own accounts to use as we wish. We still max our retirement accounts and now save plenty in 529s and taxable as well, with well over $1M in total savings and investments. That said, we don’t spend frivolously - we do a nice vacation or two each year with the kids, but are very careful about buying “stuff.”

One suggestion, and what I plan after retirement in a few years, is to go back to my high school passion for buying beat up classic cars, fixing them up and selling at a profit. That will scratch the itch of shopping for and buying cool cars, but let me make a few bucks off them as well while having fun.
"One suggestion, and what I plan after retirement in a few years, is to go back to my high school passion for buying beat up classic cars, fixing them up and selling at a profit. That will scratch the itch of shopping for and buying cool cars, but let me make a few bucks off them as well while having fun."
Some thoughts here - the catch 22 here is that the longer you wait the less likely you are to either try or really enjoy some of these things.
Balance is the key in most every situation that I have seen , hope you have fun with your restorations , I know we have.

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Re: How do 40 year olds decide what they can afford?

Post by Sandtrap » Thu Apr 11, 2019 11:09 am

It’s called financial/ life / personal maturity. Priorities change as awareness and life experience changes. Note: It’ll be realllly different at 60-70-80😬
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Morford
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Re: How do 40 year olds decide what they can afford?

Post by Morford » Thu Apr 11, 2019 11:11 am

WS1 wrote:
Thu Apr 11, 2019 9:20 am
White Coat Investor wrote:
Tue Apr 09, 2019 7:58 pm
Save enough to reach your goals spend the rest.
I think knowing the answer to that statement is the OPs struggle. Many of the commenters are offering helpful ways to thoughtfully evaluate and restrain your desires, a key element of even moderate frugality and a healthy balance sheet. The message I've internalize from perhaps too much time on this site, especially as someone just under 40, is the future is long and unknowable and you must save as much as possible; at what age will I be able to say "the plan should work"?
As someone turning 40 in December this resonates with me. I don't know what amount of money will cause me to worry less about saving and think more about enjoying....

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bligh
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Re: How do 40 year olds decide what they can afford?

Post by bligh » Thu Apr 11, 2019 11:23 am

Morford wrote:
Thu Apr 11, 2019 11:11 am
WS1 wrote:
Thu Apr 11, 2019 9:20 am
White Coat Investor wrote:
Tue Apr 09, 2019 7:58 pm
Save enough to reach your goals spend the rest.
I think knowing the answer to that statement is the OPs struggle. Many of the commenters are offering helpful ways to thoughtfully evaluate and restrain your desires, a key element of even moderate frugality and a healthy balance sheet. The message I've internalize from perhaps too much time on this site, especially as someone just under 40, is the future is long and unknowable and you must save as much as possible; at what age will I be able to say "the plan should work"?
As someone turning 40 in December this resonates with me. I don't know what amount of money will cause me to worry less about saving and think more about enjoying....
I am late 30s and I had made a post about this a few months back as well. Deciding how much to spend. In my case, the issue I was seeing was that as my net worth was increasing, I found myself comfortable with spending more too.

After reading that thread, and a bunch of introspection, I have realized that there are two types of expenses. Ones that I can put off, and ones that I cannot. Buying fancy toys and such can be put off (assuming I stay alive) .. spending time with my kids, cannot be put off. They grow up too quickly. So I mostly save as much as possible, and make an exception for the things that help me make memories with my kids. Once I reach 30x my annual expenses, I may open up my spending a little more. So it is not a function of age.. it doesn't matter if I am in my 30s or 40s or 50s.. reaching 30x my annual expenses is the point at which I know I am FI and that I have reached my goal.

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Re: How do 40 year olds decide what they can afford?

Post by Misciagno » Fri Apr 12, 2019 4:36 am

smitcat wrote:
Thu Apr 11, 2019 9:44 am
Misciagno wrote:
Thu Apr 11, 2019 2:57 am
GCD wrote:
Tue Apr 09, 2019 8:20 pm
My wife and I kept separate finances during the first 6 months of marriage. Then we just decided that was silly and went all in. But one of the side effects of combining all our finances was I felt reluctant to splurge on toys with "our" money. It was just a mental block. I found it nearly impossible to spend on anything that wasn't a need.

What we worked out was that I got a $100 per week "allowance" that included coffee and lunches. Anything I saved up for I could buy and not feel like I was frivolously spending "our" money. It also had the benefit that I was motivated to be frugal on the lunches and coffee so I could build up my toy money quicker.

Just work out your "allowance" to be whatever it is within your budget. Then spend it freely. Obviously it's just a psychological game. If you are in your 40s and in financially sound shape then it's not like you have a spendthrift mindset.
+1

I’m late 40s, and my wife and I pool our income into a joint account, but auto transfer $300 each pay period (every 2 weeks) into our own accounts to use as we wish. We still max our retirement accounts and now save plenty in 529s and taxable as well, with well over $1M in total savings and investments. That said, we don’t spend frivolously - we do a nice vacation or two each year with the kids, but are very careful about buying “stuff.”

One suggestion, and what I plan after retirement in a few years, is to go back to my high school passion for buying beat up classic cars, fixing them up and selling at a profit. That will scratch the itch of shopping for and buying cool cars, but let me make a few bucks off them as well while having fun.
"One suggestion, and what I plan after retirement in a few years, is to go back to my high school passion for buying beat up classic cars, fixing them up and selling at a profit. That will scratch the itch of shopping for and buying cool cars, but let me make a few bucks off them as well while having fun."
Some thoughts here - the catch 22 here is that the longer you wait the less likely you are to either try or really enjoy some of these things.
Balance is the key in most every situation that I have seen , hope you have fun with your restorations , I know we have.
Smitcat - You’re absolutely right. We’ll be expats in some difficult (non-“western”) places for another few years, but I plan to start shopping for the next restoration project as soon as we’re back Stateside again. I like having it to look forward to for now though. Cheers!
"History doesn’t repeat itself, but it often rhymes." -- Mark Twain

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SmallCityDave
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Re: How do 40 year olds decide what they can afford?

Post by SmallCityDave » Fri Apr 12, 2019 9:19 am

stlutz wrote:
Tue Apr 09, 2019 7:59 pm
Spend what you want on bikes but not anything else. :D
This!

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SmallCityDave
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Re: How do 40 year olds decide what they can afford?

Post by SmallCityDave » Fri Apr 12, 2019 9:24 am

malabargold wrote:
Wed Apr 10, 2019 6:31 am
You’ll probably find that stuff only brings momentary
happiness, and if you buy things too grandiose you become
the thing possessed.
Consider refocusing financial goals to assist others or causes
beyond yourself
Well said....

Stuff is stuff you can never have enough but it can be as much of a burden as a blessing. A lot of the "toys" come with additional monthly payments, insurance, maintenance etc...

Quaestner
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Re: How do 40 year olds decide what they can afford?

Post by Quaestner » Fri Apr 12, 2019 6:38 pm

WS1 wrote:
Thu Apr 11, 2019 9:20 am
White Coat Investor wrote:
Tue Apr 09, 2019 7:58 pm
Save enough to reach your goals spend the rest.
I think knowing the answer to that statement is the OPs struggle. Many of the commenters are offering helpful ways to thoughtfully evaluate and restrain your desires, a key element of even moderate frugality and a healthy balance sheet. The message I've internalize from perhaps too much time on this site, especially as someone just under 40, is the future is long and unknowable and you must save as much as possible; at what age will I be able to say "the plan should work"?
If that's true, then the OP might try some backwards planning that would help in budgeting. More specifically, figure out the kind of retirement you want ($ and retirement age), then figure out what it takes to get there. How much will you need to save each year to get to that point? Use your search engine to find and try retirement calculators that will give you estimates of how much you'll need to save annually. Choose a conservative rate of return. Don't assume your savings rate is set in stone, but thinking about it this way may help give you a ball park budget for discretionary spending. We do NOT need to save "as much as possible"! All money is for spending - today, or someday, by you, or someone who inherits it.

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Re: How do 40 year olds decide what they can afford?

Post by Cunobelinus » Fri Apr 12, 2019 10:39 pm

Triple digit golfer wrote:
Tue Apr 09, 2019 9:14 pm
DonIce wrote:
Tue Apr 09, 2019 8:47 pm
If you're on the fence about something, wait a month. If you still want it after a month, get it then. Chances are most of the time you won't still want it.
I couldn't agree with this more. I wanted a new lawn mower last fall. I decided to wait until spring to see if I still wanted it. I didn't. I'm happy with the old one and a new $12 blade.

I think with Bogleheads, we often get more joy out of saving money than whatever joy a new toy or material item would bring. Just can't let it become obsessive.
I call this my impulse buy: taking about 6 months to buy a new computer. Most purchases for things more than $20-$30 seem to take me a few months to buy.

On the lawnmower, we were looking at a new one when our neighbor had a yardsale. We ended up with a small electric one for $15, which more than suffices for our yard.

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Re: How do 40 year olds decide what they can afford?

Post by bottlecap » Fri Apr 12, 2019 10:43 pm

Congrats. You spent all of you 40s extra money on a second mortgage. That is your toy.

There's nothing left for other toys. Problem solved!

JT

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Re: How do 40 year olds decide what they can afford?

Post by Cunobelinus » Fri Apr 12, 2019 10:45 pm

28fe6 wrote:
Tue Apr 09, 2019 7:59 pm
As I get older I want less and less to buy or own things. Most of the toys I bought in the past I have either moved on from, or I regret. Every now and then I think I want a nice motorcycle or something, but then I realize after a while it would be just one more thing to maintain and insure.
I think you are trying to put a $ on the the experience of having/riding a motorcycle. If that's something that you think you can do, then you probably don't actually want a motorcycle because it'll be more hassle than it's worth.

I don't know if riding was cheaper, but it was enjoyable 99% of the time. I could get 60-70mpg, but it was also extra money to insure and gear to buy. I ended up never figuring out what the break even point was because I didn't care. It was something I wanted and enjoyed.

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Re: How do 40 year olds decide what they can afford?

Post by StormShadow » Fri Apr 12, 2019 11:14 pm

miamivice wrote:
Tue Apr 09, 2019 7:43 pm
How do others in their 40's make decisions about what they can afford with regards to "toys", gadgets, and other fun but unnecessary things?
I notice repeated posts in Bogleheads that ask essentially the same question: "should I buy it?"

My answer is pretty simple: if you can afford it and you really want it... then buy it.

Life is short.

HIinvestor
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Re: How do 40 year olds decide what they can afford?

Post by HIinvestor » Fri Apr 12, 2019 11:28 pm

When I was in my 40s I had young kids and private HS and college looming as well as relatively high mortgage and low income. We spent some on travel with our kids and friends but saved as much as we could and aggressively paid down our mortgage. The toys we indulged in were computers for each of us, bicycles for the kids, etc.

We honestly didn’t desire or acquire many other things as we hoped to help fund the kids’ educations.

Once the kids graduated from college debt-free and we finished paying off the mortgage, we gave little interest in expensive toys but happily spend on travel and dining out. It’s all personal preference.

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Re: How do 40 year olds decide what they can afford?

Post by spammagnet » Fri Apr 12, 2019 11:35 pm

Snowjob wrote:
Tue Apr 09, 2019 8:43 pm
That question is very personal -- if we are only talking a smaller amount of discretionary income, 4 or 5 thousand dollars, that extra spending might increase your quality of life and saving it wont shave much time off your final retirement date. However if we are talking 30 or 40 thousand dollars, then its quite possible you might not find a good way to spend it all and you might as well save the majority.
Or donate it.

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Re: How do 40 year olds decide what they can afford?

Post by White Coat Investor » Mon Apr 15, 2019 9:27 am

WS1 wrote:
Thu Apr 11, 2019 9:20 am
White Coat Investor wrote:
Tue Apr 09, 2019 7:58 pm
Save enough to reach your goals spend the rest.
I think knowing the answer to that statement is the OPs struggle. Many of the commenters are offering helpful ways to thoughtfully evaluate and restrain your desires, a key element of even moderate frugality and a healthy balance sheet. The message I've internalize from perhaps too much time on this site, especially as someone just under 40, is the future is long and unknowable and you must save as much as possible; at what age will I be able to say "the plan should work"?
Why would you save as much as possible? Save as much as you need to save and spend the rest (If you've got something else to spend on that will make you happier.) If you don't have any idea how much you need to save (at least a rough idea) you need a written financial plan.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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TheTimeLord
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Re: How do 40 year olds decide what they can afford?

Post by TheTimeLord » Mon Apr 15, 2019 9:29 am

bluebolt wrote:
Tue Apr 09, 2019 10:50 pm
"Nothing tastes as good as skinny feels" - Kate Moss

"No spending is as satisfying as FIRE feels" - me
If you can't spend then you aren't FI.

corrected.
Last edited by TheTimeLord on Mon Apr 15, 2019 11:21 am, edited 1 time in total.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

EddyB
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Re: How do 40 year olds decide what they can afford?

Post by EddyB » Mon Apr 15, 2019 9:58 am

TheTimeLord wrote:
Mon Apr 15, 2019 9:29 am
bluebolt wrote:
Tue Apr 09, 2019 10:50 pm
"Nothing tastes as good as skinny feels" - Kate Moss

"No spending is as satisfying as FIRE feels" - me
If you can spend then you aren't FI.
You’re going to have to explain the last one. Only people who cannot spend (any money?) are truly FI, like in a “deep” sense?

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TheTimeLord
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Re: How do 40 year olds decide what they can afford?

Post by TheTimeLord » Mon Apr 15, 2019 11:21 am

EddyB wrote:
Mon Apr 15, 2019 9:58 am
TheTimeLord wrote:
Mon Apr 15, 2019 9:29 am
bluebolt wrote:
Tue Apr 09, 2019 10:50 pm
"Nothing tastes as good as skinny feels" - Kate Moss

"No spending is as satisfying as FIRE feels" - me
If you can spend then you aren't FI.
You’re going to have to explain the last one. Only people who cannot spend (any money?) are truly FI, like in a “deep” sense?
Sorry typo, meant to say If you can't spend then you aren't FI.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

randomguy
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Re: How do 40 year olds decide what they can afford?

Post by randomguy » Mon Apr 15, 2019 11:59 am

thx1138 wrote:
Thu Apr 11, 2019 8:30 am
First I think you need to take a hard look at what you are trying to “afford” here - it is a list of fairly pointless amusements. No one that I’m aware of has ever said on their death bed “I should have bought a drone...”
I am also unaware of anyone on their death bed saying they should have saved 41% instead of 40%. I am also not aware of many hobbies/enjoyable activities that aren't pointless. My round of golf, trip to europe, hiking parts of the Appalachian trail, watching movies, and so on are all pointless. They are also enjoyable. Now a drone don't sound remotely fun for me but you are not me. If for whatever reason you think a drone will bring you hundreds of hours of entertainment, go for it.

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beyou
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Re: How do 40 year olds decide what they can afford?

Post by beyou » Mon Apr 15, 2019 12:09 pm

You did not give any details as to existing savings nor income, so giving you an opinion that is relevant to your situation is difficult.

For me, even with a good income, I always assumed the good income would not last forever and that eventually age discrimination, health or other industry/company wide shifts could easily reduce/eliminate my income. I saved all I could and now that I am in my 50s, I am facing a job loss.
I have no fear of the job loss because I saved and don't HAVE to work if I choose not to. I would prefer to keep earning more, but prefer is not the same as needing to do so, what a great feeling. I don't think any boat or drone would have given me that same feeling, but that's me.

mak1277
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Re: How do 40 year olds decide what they can afford?

Post by mak1277 » Mon Apr 15, 2019 12:16 pm

Live the life you want to live...today (within your means). That should be priority #1, over and above saving for retirement (which is a life you may never even get to live).

Utahdogowner
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Re: How do 40 year olds decide what they can afford?

Post by Utahdogowner » Mon Apr 15, 2019 12:28 pm

White Coat Investor wrote:
Tue Apr 09, 2019 7:58 pm
Save enough to reach your goals spend the rest.
We've tried to have a goal of maxing out tax-advantaged space as that is always a mantra of personal finance.
As a physician-owner, that is 54k 401k + 12k Roth + 6k 529 (2 kids).
>70k. I felt bad for a little while that we coudln't get much into taxable (we're barely into the new 35% bracket). Then I realized this is a ton of money.
Sometimes feels like OP and I'm over-saving and should be sure to enjoy the now, as tomorrow is but a dreamhttps://joshkaufman.net/salutation-dawn/.

staythecourse
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Re: How do 40 year olds decide what they can afford?

Post by staythecourse » Mon Apr 15, 2019 12:39 pm

Ron Ronnerson wrote:
Wed Apr 10, 2019 11:49 am
My wife and I are both 44 and have found that time is the most precious thing to us so we’re purchasing large amounts of it by not working too much. This allows us to spend a lot of time together as a family (I’m a teacher, my wife is a stay-at-home parent, and we have a four-year-old). If we really want something, we consider it carefully and try to find the most affordable way to purchase it.
Exactly my view. My wife and I will likely have more money then we ever will need at our current pace. Passing a few million over and over is not that exciting. I'm 42 and she is 37 so we are taking more time off to spend time with each other and the kids while they are still young. There is NO better use of my money to ditch the office (even my patients know why) to run over and pick up my toddler when she is running out of school.

I really don't care for toys. Didn't care for them when I was young or now. Time to spend with family though is priceless for my wife and I. I can't wait until my son is old enough to cut out of work to get to his baseball practices!!

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

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