Thanks to all of those who entered my SECOND $700 in 7 Days Giveaway; you still have a couple of hours to sneak in and submit your entry for what looks like a better than 1 in 30 chance to win the first prize of $350 in cash … that’s like $10 just for filling in a 2 second form!
If you refer friends, you will be in the running to win the second ($150), third ($50), and fourth prizes of ($50) CASH as well … right now, I’ll be struggling to give all of those prizes away, so that’s a pretty good hint. But, since you’re late to the party, you’ll have to find the entry form yourself. HINT: xxxx 😉
I wasn’t spanked by my readers nearly as much as I expected for sharing my happiness with my mansion purchase (actually, two mansions: one in US and one in Aus), then again the purpose wasn’t to brag but to counter the idea that spending is bad.
In fact, spending is only bad out of context … $7 million in 7 years kind of context … when not spending would be even more absurd.
Anyhow, Josh did pull me up:
What’s the point? Maybe I’m missing something. Maybe it’s because my assets are in the 7-figure range and not the 8-figure range. But why spend $X Million on a home?
I live debt-free in a home that cost $300K. I could have bought a $2M+ home, but it seems so impersonal, pretentious, and secluded. I want people to come over and feel comfortable drinking beer with their feet up on the coffee table, or to let their kiddos run around carefree after coming inside on a rainy day. Even now, some people feel uncomfortable in my house because it is “so nice” for the area in which we live.
Well, why do people climb Mt Everest? What’s the point?
Because (a) it’s there, and (b) they can!
So, I have a very simple rule on spending that has kept me in good stead – through poorer and richer:
I spend money when it doesn’t make sense NOT to!
I became rich because I wanted to travel spiritually (that’s free); mentally (that costs me in time and ‘venture’ capital); and physically (that much traveling costs me a LOT of time/money: hey, I retired at 49 so I WANT to travel Business Class and stay in at least 3/4/5-star hotels).
So I set out to make my $7 million in 7 years to allow me to begin the life that I wanted to live (without needing to work) and was fortunate enough to succeed …
… and, one of the side benefits of that financial success is that I have plenty of cash for cars and houses, and vacations and bling. And, for charitable gifts and deeds 🙂
I write this blog because I wish the same for all of you …
PS a big house doesn’t need to be pretentious; ours is homely and welcoming and people love it because they get to hang with us, play tennis, watch movies, and swim 🙂
I’m not sure why anyone should criticise you for your spending decisions – it’s your money which you have earned (and paid taxes on). Why should anyone object to what you do with it? If anything you should be commended for spending it in a way which stimulates the local economy.
For the most part, I’m often tempted to take the view that those who criticise spending decisions like yours (or mine for that matter) are doing so because they belong to the “bash the rich” brigade – whether you do or you don’t they will find something negative to say about your actions (or inactions). That said it is legitimate for people to say that they would not spend money (or as much money) on the things that you choose to spend money on – but that is the whole point. Unless you have the misfortune to live in an oppressive regime like North Korea where you don’t have any choice at all, it is a matter of individual choice.
Me? I have a nice but unexceptional home. This is a matter of choice – I would get more utility and happiness out of a larger home but not as much as I will get out of investing the difference so that I can quit my job and pursue other activities sooner. Likewise, I choose to get more hapiness out of investing money and using the resulting income to fund luxury travel to a number of different places each year than I would get out of buying a second home somewhere. And I’m still working for one reason only – I want to live a certain lifestyle and that takes money. While I respect the likes of Jacob at Early Retirement Extreme for living out his choices, I’ll also respect your choice to live your life the way you see fit…and I hope that I am able to to likewise in the near future.
Each to their own.
I wouldn’t say that I would want to be rich per se (although a million or two when I retire is not “rich” to me, but secure for a retirement), but I do agree that the reason why I save and squirrel away money (while spending reasonably) is to be financially secure enough to be free to travel.
@ Everyday Minimalist – if, on your travels, you do happen to see me sitting in a cafe in Prague, please do take the time to stop for a cup of coffee 🙂
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