Finding that line between being "too" frugal and still enjoying life

[BeTheChange]

I'm currently reading "The Millionaire next door" and basically it makes the case that the profile of the average millionaire in America is a first generation millionaire and a man in his late 50s who achieved his status due to being incredibly frugal - basically making a good salary but living like someone on minimum wage.

To me that's a bit like living till you're 100 but never going out partying, drinking, smoking or doing anything that could remotely damage your health. To me that's not a life worth living. I want to wear nice clothes, go on (moderately) expensive holidays and not have to worry too much about general spending. So where do you draw the line?

 

[ChristopherColumbus]

I'm currently reading "The Millionaire next door" and basically it makes the case that the profile of the average millionaire in America is a first generation millionaire and a man in his late 50s who achieved his status due to being incredibly frugal - basically making a good salary but living like someone on minimum wage.

To me that's a bit like living till you're 100 but never going out partying, drinking, smoking or doing anything that could remotely damage your health. To me that's not a life worth living. I want to wear nice clothes, go on (moderately) expensive holidays and not have to worry too much about general spending. So where do you draw the line?

Yes, I think Max Weber had something to say about that.

 

[speed dawg]

I'm currently reading "The Millionaire next door" and basically it makes the case that the profile of the average millionaire in America is a first generation millionaire and a man in his late 50s who achieved his status due to being incredibly frugal - basically making a good salary but living like someone on minimum wage.

To me that's a bit like living till you're 100 but never going out partying, drinking, smoking or doing anything that could remotely damage your health. To me that's not a life worth living. I want to wear nice clothes, go on (moderately) expensive holidays and not have to worry too much about general spending. So where do you draw the line?

Piggybacking on the other thread, I'm nearly resigned to the fact that I am doing this so my kids will have a better life, and a chance to do bigger things. I certainly want to retire at age 65 but hopefully they'll benefit from the money I've saved. At some point, for someone to have success, someone had to sacrifice. For example, many men DIED so I could have the freedom to do wonder about money. Without that, none of it would matter.

 

[Xenom0rph]

Don't be too frugal... I lived a fast-pace, awesome life in my 20's and I don't have any regrets at all. I'm 34 now and I can tell you that while I do still have the funds to engage in the same type of fast-pace action, it's socially unacceptable for a 30+ guy to do certain things. Not only that, our bodies can't handle the physical abuse that it once could... I used to be able to party for 2 days straight with no problem...now I literally have to go to bed at 9:00PM every night because my body and my mind need rest, I can't even will myself to stay up anymore.

Another thing is that for the past couple of years my testosterone levels have dropped and so has my sex drive -- it's a fact of life as we men age unfortunately.

In this lifetime, we're young for the first 29 years of our life, and old for the rest -- basically the portion of our life as an old guy is much longer than the portion of our life as a young guy....

I recommend living life to the fullest within the realm of financial responsibility.

 

[Tenacity]

I'm currently reading "The Millionaire next door" and basically it makes the case that the profile of the average millionaire in America is a first generation millionaire and a man in his late 50s who achieved his status due to being incredibly frugal - basically making a good salary but living like someone on minimum wage.

To me that's a bit like living till you're 100 but never going out partying, drinking, smoking or doing anything that could remotely damage your health. To me that's not a life worth living. I want to wear nice clothes, go on (moderately) expensive holidays and not have to worry too much about general spending. So where do you draw the line?

Well, it doesn't say the guy is living like someone on minimum wage.....it's just a guy that lives BELOW his means. He's not going out buying expensive item after item, week after week, doing vacation after vacation, etc., etc.

He enjoys his life. If someone lives in an average or low cost of living area, I don't see why there's ever a reason for someone to be spending more than $50,000 per year in personal expenses (housing, transportation, entertainment, recreation, shopping, clothes, food, etc.) on themselves anyway.

So a guy making $200,000 per year should be SAVING at least $120,000 per year after personal expenses and taxes in my opinion.

 

[samspade]

My general rule is experiences over things. I don't buy a lot of expensive items, just what I need with the occasional extravagance once in a while. With that money, besides saving, I can enjoy things like dinner, wine, trips, cab rides, shows, museums, etc. The rush from buying a new toy lasts a little while, but from a cool experience, it's in the memory bank and helps shape me, if that makes sense.

An example - a year or two ago a local museum had an exhibit on super heroes. My girlfriend and I went to it after a nice dinner at a mediterranean restaurant. The ad featured lots of memorabilia like the '60s Batmobile. It also had original old editions of comic books, including Action Comics #1. That's an item that's worth millions, and as a child I wondered if I'd every lay eyes on that. I thought it was pretty cool at age 40 or whatever to see it, finally. The whole night was pretty great and I won't soon forget it.

I will say that clothes are sort of in-between. They are necessary and add to your experience - you'll feel great if you're dressed right for any occasion. But I don't let myself get carried away with brand names or designers, because I can't afford anything crazy. Most people can't tell anyway - they always compliment me on my style. Still, you have to spend a little something or you'll be in itchy, stiff fabric and that's no way to go through life.

 

[Tenacity]

I disagree with Ramsey on his bashing of Credit Cards, because Credit Cards are like GUNS....they can either be a very efficient/protective tool or they can cause a lot of destruction, depending upon WHO is holding them.

But I like Ramsey's rants on having a budget and knowing where every single dollar/penny that you spend is going, as that's how I personally handle my budgeting. Take a listen to some rants: