[samsamsam]

(09-21-2014 08:21 AM)pitt Wrote:  

I know this old man here in DR (he is 67) and he says he is worth almost 10 million dollars. If you see this man, you would never think he is worth all that money. He drives a really old car, rents a very cheap place and fucks prostitutes all day. If I am going to work all my life to live like that, then I don't want to have 10 million dollars. What is the point of having lots of money if you are not going to spend it?

I don't really spend a lot of money but whenever I see something that I like I would pay for it. I recently bought a watch for 250 dollars and a sun glasses for 250 dollars. My friends said they wouldn't pay all that money for it, I value those things and I know they will last me few years, so I don't see any problems in buying it. I don't mind buying travel tickets to memorable places, buying quality clothes whenever I need them, eating good food (even though I eat good and cheap on everyday basis).

I just don't spend money on stuff that I don't need. I won't buy the latest iphone for example, I won't buy a new laptop because the one I bought second hand 4 years ago, still doing the job. I don't spend 100 dollars buying alcohol in one night, I don't buy a car because I don't need one even though I could afford it. But don't get me wrong, If I had 500k dollars saved, my life would be a bit different. I would probably buy myself a car for 40k dollars and travel a bit more often.

Some of these people are being frugal because they say you never know what the future could bring. But really, what is the worse that could happen? If you have 200k saved, I think you could solve most of everyday life problems, enjoy the rest of the money.

I agree but that is 10M old man is an extreme, same thing with the old lady example on an earlier post. I think when you hit a number for LIQUID ASSETS and have a steady cash flow, then sure things change and it would make sense to. The numbers are different for everyone

Maybe I missed the point, but to me my thought was about how to get to that point where I can enjoy things I appreciate and yet know I am set up for the long term.

Also, being frugal doesn't mean buying cheap items. To me it is buying things of value, lasting value. In the shoe thread people discussed whether or not to buy cheap work shoes. But they wear out quicker, some are not made to be re-soled, good shoes can last you decades. So you think about your costs of shoes over a long period of time.

I'd be curious what liquid number everyone would need to feel like you could live your life you wanted. And a monthly inc stream. For me $1M liquid assets plus 5K a month off passive or easy work (low hours, no stress) would be significant for me.