Do you reward yourself for achieving a financial goal?

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JonnyDVM
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Re: Do you reward yourself for achieving a financial goal?

Post by JonnyDVM » Fri May 17, 2019 5:58 am

I make a point to open a nice bottle of wine to celebrate. We just hit a nice milestone ahead of schedule and broke out the Caymus. It maybe coincidence, but there has definitely been an uptick in our spending lately. I’m still hesitant to pull the trigger on a new car though, even though I could use one. When you have something that’s functional getting where you want to go it’s painful to drop big coin on a replacement.
Sometimes the questions are complicated and the answers are simple. -Dr. Seuss

SoAnyway
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Re: Do you reward yourself for achieving a financial goal?

Post by SoAnyway » Sat May 18, 2019 12:50 am

TomatoTomahto wrote:
Fri May 17, 2019 5:09 am
So, anyway, my calling your name was semi-conscious. :D
; ) Cheers, my friend. :sharebeer
TomatoTomahto wrote:
Fri May 17, 2019 5:09 am
Kona coffee is something I have given in on. It’s SO good, and so easy on the GI system, even if you drink it strong and black; it has become the standard cuppa here. I never buy expensive outside (eg Starbucks) coffee, so I probably break even.
I couldn't agree more, TT! I first had it in my 20s on a stopover in Hawaii en route to Asia. Life-changing experience. As I said, I treat myself to it every so often. As I also said, you inspire me TT: Maybe when I reach your family's NW or am sadly informed that my "time horizon" is more limited than I currently believe it to be (whichever comes first), I'll give in. Trust me, I've no death wish but if I were informed today that I had a terminal illness, it'd be Kona daily from here on out. And any doctor telling me to cut back caffeine for medical reasons would kindly but firmly be told to stuff a sock in it. ; ) I'd be obliged if you could kindly PM me which brand you buy and where you source it from; I trust your judgment on these matters completely. BTW, like you I don't spend on Starbucks et al. coffee outside. (blech)
TomatoTomahto wrote:
Fri May 17, 2019 5:09 am
Btw, Qantas doesn’t have a u in the name, but you can’t use it in Scrabble because it’s a proper noun.
Ack! :oops: Right you are, TT. Shame, shame. I've edited my post accordingly. And yes, I was raised in a "Scrabble family". ; ) I'm well familiar that Qantas - whether spelled correctly or with a "u" - would NOT fly (no pun intended)....

So as to keep things on-topic, it occurred to me that I do have something more to contribute in response to OP's post:
Schlabba wrote:
Wed May 15, 2019 2:53 am
Like the title says, did you ever buy luxury for as a reward? Like a nice rolex when reaching 250000 net worth....?
OP, I stand by my original response. That said, as another poster upthread mentioned, my rare purchases of luxury goods over the years have not been tied to achieving financial goals. Rather, they were grounded in practicality. One example: When the lovely Seiko Quartz watch that I got as a high school graduation present died in my early 30s after over a decade of dedicated and precise service, I was looking to buy a replacement. My more "material" SO at the time kept trying to convince me to buy a Rolex. After all, I could afford it, yada, yada, yada. My response was that I needed a Rolex like a hole in the head; what I needed was a dependable and wearable timepiece, and another Seiko Quartz would be just fine. SO's arguments that boiled down to addressing a need I don't possess (to impress others) fell on deaf ears. The argument that convinced me? "SoAnyway, if you buy a Rolex, you'll never have to buy another wristwatch for the rest of your natural freakin' life." "Oh! Ok, NOW you're speakin' my language, my dear...." Bottom line: I'm wearing that watch right now which has long outlasted that relationship. Last watch I'll ever have to buy. ; )

EDIT: I recognize that there is probably an entire generation reading that doesn't see the point in EVER owning a wristwatch. After all, if you want to know what time it is, all you have to do is look at your cell phone which is permanently attached to your being. (duh) I'm totally cool with that. Hopefully the wristwatch industry will adapt. To that generation I say: Please just recognize that your elders have a different "muscle memory" when that urge to know what time it is strikes, and they see a benefit in those muscle memory habits that maybe you can't and have no need to understand. And more importantly, it ain't gonna change now. It's the same thing I went through in trying to convince my Mom and Dad waaay back when that they didn't need to schedule their errands around "bankers' hours" since ATMs were 24/7. (duh) It took me some years, but I now "get" that they liked those brief social interactions with the bank tellers they'd known for years. They had value in and of themselves. BTW, both Mom and Dad died never having ever touched an ATM. I respect that, even if I never really understood it.

P.S. OP, where are you???? FWIW, I don't have a lot of patience with OPs who post and then disappear without responding to/engaging with those who've taken the time to respond thoughtfully, even if only to say "Thanks but no thanks." Not that I keep a ledger, but I do note that in so doing such OPs are branding themselves as "Takers", i.e. All Take, No Give. Just sayin'.... I wish you all the best, OP.
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Schlabba
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Re: Do you reward yourself for achieving a financial goal?

Post by Schlabba » Sat May 18, 2019 9:05 am

SoAnyway wrote:
Sat May 18, 2019 12:50 am
P.S. OP, where are you???? FWIW, I don't have a lot of patience with OPs who post and then disappear without responding to/engaging with those who've taken the time to respond thoughtfully, even if only to say "Thanks but no thanks." Not that I keep a ledger, but I do note that in so doing such OPs are branding themselves as "Takers", i.e. All Take, No Give. Just sayin'.... I wish you all the best, OP.
I am still here! I figured as long as this thread is still going I can enjoy the discussion from the sideline.

I have made an excel sheet that includes my yearly contributions and an assumed 7% stock return. The column next to it has my age.
This way if I deduct any big expense, I can see howmuch that shifts the 1million milestone. So then the question becomes something like: Do I want my 1 million at 40 while driving a 15 year old car or do I want my 1 million at 41 while driving my BMW. It makes it more concrete for me.

The age-thing has been left out of these discussions. I mentioned the 250k milestone and some people seems to think thats really not alot of money. I think 250k at 30 is a lot of money, and with 250k at 60 you should be selling your luxury items!

And finally the Rolex (or other expensive watch) example: They hold their value to some extent. If you compare it with an apple watch that you have to replace every 2 years, you might be better off with a rolex.
A rough estimate: 10 years maybe depreciates a rolex with 2k out of its 5k, and 5 apple watches together can also cost 2k. I also realise that 5k invested would give me 10k after 10 years.

I will buy a luxury watch. My excel sheet says it matters only very little! :)
The bmw has a lot bigger impact.

JBTX
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Re: Do you reward yourself for achieving a financial goal?

Post by JBTX » Sat May 18, 2019 2:52 pm

To me actually reaching the goal is the reward in itself. Blowing money on a "reward" after you've worked hard to save seems counter-productive to me.

Wricha
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Re: Do you reward yourself for achieving a financial goal?

Post by Wricha » Sat May 18, 2019 4:07 pm

Schlabba wrote:
Wed May 15, 2019 2:53 am
Hi,

Like the title says, did you ever buy luxury for as a reward? Like a nice rolex when reaching 250000 net worth or a new BMW at 500000 or something like that?
I kinda thought this post was joke. What’s next a second home in Aspen for a million. To answer “no” nor would anyone who wants to achieve financial independence in a reasonable time frame.

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Tycoon
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Re: Do you reward yourself for achieving a financial goal?

Post by Tycoon » Sat May 18, 2019 4:44 pm

I didn't punish myself when I missed goals. I didn't reward myself when I met them. I just set new goals.
“To know what you know and what you do not know, that is true knowledge.” Confucius

Topic Author
Schlabba
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Re: Do you reward yourself for achieving a financial goal?

Post by Schlabba » Sat May 18, 2019 9:12 pm

Wricha wrote:
Sat May 18, 2019 4:07 pm
Schlabba wrote:
Wed May 15, 2019 2:53 am
Hi,

Like the title says, did you ever buy luxury for as a reward? Like a nice rolex when reaching 250000 net worth or a new BMW at 500000 or something like that?
I kinda thought this post was joke. What’s next a second home in Aspen for a million. To answer “no” nor would anyone who wants to achieve financial independence in a reasonable time frame.
The question is about the balance between investing and spending money during the accumulation phase. A second home in Aspen is just as extreme as never spending a penny until you reach FI.

mak1277
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Re: Do you reward yourself for achieving a financial goal?

Post by mak1277 » Mon May 20, 2019 9:07 am

Schlabba wrote:
Sat May 18, 2019 9:05 am

And finally the Rolex (or other expensive watch) example: They hold their value to some extent. If you compare it with an apple watch that you have to replace every 2 years, you might be better off with a rolex.
A rough estimate: 10 years maybe depreciates a rolex with 2k out of its 5k, and 5 apple watches together can also cost 2k. I also realise that 5k invested would give me 10k after 10 years.

I will buy a luxury watch. My excel sheet says it matters only very little! :)
The bmw has a lot bigger impact.
Be careful here...Rolex is a fairly unique animal in the watch world in terms of holding value. I wouldn't assume that other, similarly priced, watch brands will retain value like a Rolex does.

Also, I say go for it!

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