Why do I keep spending??
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caseyc
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Here's a tidbit of trivia. For your own emotional well-being, do NOT ever use those financial calculators from investment companies that calculate how much money you need to retire comfortably. Almost without fail, the amount the calculator tells you will be something that is way, way high as to depress the living sh!t out of you. At least that's been my experience. Every damn calculator I've ever used tells me I need millions and millions to live comfortably in my retirement years. Well, hell, tell me something I don't already know! 
Lucky mike
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mac must be using one of those calculators.......or he is right because after taxes and fees thats not what is coming back to the accounts.......60k plus of that is just tax
caseyc
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All those financial calculators will say you will die a penniless, miserable, lonely, wretched death...UNLESS you have saved up at least multiple millions tucked away in a Swiss bank account. What the calculators don't realize is that we like living in our vans, and the hell with a mortgage, kids, and other financial burdens! Haha! My views are obviously biased, hyuck yuck!
By the way, some of you might find this surprising, but at various times in my life over the years, I've had professional financial licenses in the securities and banking industry: Series 7 brokers license, Life Agent insurance license, Sales Person Real Estate license, etc. What does all this mean? Well, nothing really. What I really needed was a Discipline 101 License. You know who I admire most in my life? My mom. Yes, my mother. A woman who divorced my dad early on, and worked at a meager restaurant job with equally meager pay. But she managed to save up a whole lot more than I've been able to, even though I earn way more than her. She truly knew how to live a simple and minimalistic life and always tried to teach me to do the same. Wasn't until years and years and years later that I finally understood what she tried to teach me. Oh well, better late than never, I suppose.
By the way, some of you might find this surprising, but at various times in my life over the years, I've had professional financial licenses in the securities and banking industry: Series 7 brokers license, Life Agent insurance license, Sales Person Real Estate license, etc. What does all this mean? Well, nothing really. What I really needed was a Discipline 101 License. You know who I admire most in my life? My mom. Yes, my mother. A woman who divorced my dad early on, and worked at a meager restaurant job with equally meager pay. But she managed to save up a whole lot more than I've been able to, even though I earn way more than her. She truly knew how to live a simple and minimalistic life and always tried to teach me to do the same. Wasn't until years and years and years later that I finally understood what she tried to teach me. Oh well, better late than never, I suppose.
Mac J
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I'm in Canada. Ask, phone, or look up online Canadian Financial Planners. Ask them questions.
I'm not using one of those calculators at all. I pay 1% to my financial institution and last year earned 19%. Granted, it was a good year for the markets. Some years it is not but what history has taught the masses is that it always goes up. Simple as that. Of course I paid income tax on that. I'm not even sure what these "financial calculators" are.
Think of it this way: If you had a million dollars and put it under your mattress and withdrew $50,000.00 a year it would last you 20 years.
Hand it over to Reputable Financial Planning Institution and it will last longer.
Understand what you are doing and it will last longer still. It's hard to understand all the ins and outs and that's why you should sit down with a planner and talk until you understand.
One million dollars is a lot of money. No, it doesn't have the buying power that it did so many years ago and no, you can't take it with you or eat it but not spending on unneeded crap will get you closer. How many years do you have left? I don't know.
I'm not using one of those calculators at all. I pay 1% to my financial institution and last year earned 19%. Granted, it was a good year for the markets. Some years it is not but what history has taught the masses is that it always goes up. Simple as that. Of course I paid income tax on that. I'm not even sure what these "financial calculators" are.
Think of it this way: If you had a million dollars and put it under your mattress and withdrew $50,000.00 a year it would last you 20 years.
Hand it over to Reputable Financial Planning Institution and it will last longer.
Understand what you are doing and it will last longer still. It's hard to understand all the ins and outs and that's why you should sit down with a planner and talk until you understand.
One million dollars is a lot of money. No, it doesn't have the buying power that it did so many years ago and no, you can't take it with you or eat it but not spending on unneeded crap will get you closer. How many years do you have left? I don't know.
D
Donedirtcheap
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I want to pay as much tax as I possibly can. I hope the amount I owe continues to go up.
caseyc
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MacJ,
Sounds like you're doing the right thing. In the United States, a Certified Financial Planner (CFP) is one of the highest designation a financial advisor can attain. That professional can most likely design a well planned financial future for you, in addition to taking into account estate planning and taxation. Paying 1% fee (of your gross total account value) to your financial advisor is standard practice, and is quite fair, in my opinion. Yes, the markets have generally gone up in the past year (and overall), hence your better than "normal" rate of return recently, as compared to the standard S&P 500 benchmark index. Nowadays, since people are living longer and longer into their 80s or so, it's possible to outlive your retirement savings. Hence, one might consider annuitizing a portion of savings through a life insurance company in order to have a guaranteed monthly payout amount for life. By the way, I'm not trying to sell financial advice in any way shape or form. Simply making general opinions.
Here's an example of financial calculators to figure out how much is needed for retirement. I always find these amusing. A Google search yielded these results:
https://www.google.com/#q=calculator+for+how+much+money+needed+to+retire
Sounds like you're doing the right thing. In the United States, a Certified Financial Planner (CFP) is one of the highest designation a financial advisor can attain. That professional can most likely design a well planned financial future for you, in addition to taking into account estate planning and taxation. Paying 1% fee (of your gross total account value) to your financial advisor is standard practice, and is quite fair, in my opinion. Yes, the markets have generally gone up in the past year (and overall), hence your better than "normal" rate of return recently, as compared to the standard S&P 500 benchmark index. Nowadays, since people are living longer and longer into their 80s or so, it's possible to outlive your retirement savings. Hence, one might consider annuitizing a portion of savings through a life insurance company in order to have a guaranteed monthly payout amount for life. By the way, I'm not trying to sell financial advice in any way shape or form. Simply making general opinions.
Here's an example of financial calculators to figure out how much is needed for retirement. I always find these amusing. A Google search yielded these results:
https://www.google.com/#q=calculator+for+how+much+money+needed+to+retire
Where~the~wind~blows
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I'm joining the party late, but my mother and I are spenders, my mom would buy things and then never use them or even take them out of the box, she like the hunt for bargains and such, but after that the thrill was gone. Me I love looking at the cool stuff, I love gadgets, I'l buy them try them and usually toss the ones that don't really work. I like the thrill of new stuff... give me a tiny rush, but being in a small space you are very limited as to how much stuff you can keep... helps a lot
Mac J
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Diversity is the key to any successful financial plan. Mutual Funds will see an investor through when the Stock Market is down. In Canada we don't have a "Death Tax" like in the USA. We have Probate and Capital Gains Tax. I think, in order to preserve the legacy my wife and I are leaving to our kids, that a Life Insurance Plan with a payout that matches the legacy's potential tax bill will protect our heirs from these bills. So, that's what we have done.
caseyc
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Weeeeell, actually mutual funds will generally go up or down depending on the direction of the markets. So if the market is going down, so will a mutual fund, generally speaking. Unless you are referring to "bear funds" which are funds that short stocks, but I don't think you are. But I do know what you mean that diversification is a good thing, and you will generally get diversification in mutual funds, versus individual stocks that are concentrated positions with high betas, and hence "risky". For the average investor, mutual funds is typically the way to go for "safety" and a decent rate of return during good market years. Personally, I prefer shorting stocks by buying 1 or 2 month "put" options that are out of the money, and based on technical analysis of stock charts that are breaking down critical support levels...but I digress. I was literally doubling and tripling my money within hours doing this after the 9/11 disaster when the market was tanking in triple digits for multiple days in a row. I don't think we'll ever see that happen again, at least not in my lifetime.
decodancer
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Even when times are good, I can't seem to put anything away for a rainy day. I know how to save for a dream trip or something I really want. I put change in a jar and will religiously add cash to it when I have extra. I've even opened savings accounts only to close them when I reach my goal. Saving for retirement or an emergency, that's just not my style LOL. I too love to shop but this winter has taught me how to live on next to nothing and I think I may appreciate what I buy a bit more now. I had to use my credit cards for absolute necessities and paying those off is my new challenge.
Lucky mike
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Im just happy to see there is a couple of millionaires living in their vans on the forum.....at least I know where to go when I need help
sl1966
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That's not a problem with me. I think it's mainly because of the economic downturn and having been homeless. I had to kind of go hungry before I got back on my feet. Once I did I made up my mind to not spend/waste money on things I didn't need. I've become so frugal that I'm even agonizing over buying some of the things that I do need.
A good thing to do is take inventory of what you do own and determine exactly how much beneficial use you're getting out of it. You may come to learn that you have things that you can do away with now. Doing that helped me to scrutinize future purchase and their long term value/use in my life.
Good Luck
A good thing to do is take inventory of what you do own and determine exactly how much beneficial use you're getting out of it. You may come to learn that you have things that you can do away with now. Doing that helped me to scrutinize future purchase and their long term value/use in my life.
Good Luck
Lucky mike
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I'm flat broke ........that's my story and I'm sticking to it !!!!
(I have 3 ex's )
(I have 3 ex's
)
Belinda2
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Caseyc,
....Before this post I was researching two subjects on this site. You knew the answer and gave wonderful insight on this forum. Now, YOU just need to believe in you.
....Before this post I was researching two subjects on this site. You knew the answer and gave wonderful insight on this forum. Now, YOU just need to believe in you.
caseyc
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Really? Thanks. What did I help you on? My memory fails me.
Belinda2 said:
WheelEstate USA
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DD...I'm with you, saving just ain't happening. Sure, a couple bucks here and there, but if we break down, we're stuck there till next social security check or 2. We're well aware that we're taking a chance...that's the way it goes if ya wanna travel bad enough.
Shoot, I gave up on ever seeing a million a long time ago.
Casey...In all reality, you have the right to spend your bucks any way you like. You have a good job and you're still young. Nothing wrong with enjoying the fruits of your labors.
As long as you're happy, go for it.
Shoot, I gave up on ever seeing a million a long time ago.
Casey...In all reality, you have the right to spend your bucks any way you like. You have a good job and you're still young. Nothing wrong with enjoying the fruits of your labors.
As long as you're happy, go for it.
flying kurbmaster
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alright you asked, I think you are trying to fill a void, you buy backups for backups, alarms to cover your alarms, watches to tell you to check you watches to tell you what time it is, I can't begin to tell you what that void is, maybe you need a god, maybe you something else, obviously you want to change as you are reaching out, I don't have the answer but I am sure you do,
I can give you a bit of advice about how to stop buying more stuff you don't need, and saving money,
Start cooking your own meals, before you think it, don't go out and buy a bunch of cook books or every other kitchen gadget, a knife and a fork a pot and a frypan is all you need, every day go out and forage for you food, walk into the grocery store, down to the bulk food store, the vegetable shop and buy dinner, a piece at a time this will keep you busy for a longer period of time each day, satisfy your need to buy things, allow you to be creative, make you healthier and save you money all at the same time, good luck
I can give you a bit of advice about how to stop buying more stuff you don't need, and saving money,
Start cooking your own meals, before you think it, don't go out and buy a bunch of cook books or every other kitchen gadget, a knife and a fork a pot and a frypan is all you need, every day go out and forage for you food, walk into the grocery store, down to the bulk food store, the vegetable shop and buy dinner, a piece at a time this will keep you busy for a longer period of time each day, satisfy your need to buy things, allow you to be creative, make you healthier and save you money all at the same time, good luck
Belinda2
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Caseyc,
You just made comments on this site in the past and I research different topics on this site instead of posting the same thread. Anyway, your comments were very helpful. You do a nice job.Thank you.
In other words, Caseyc, I agree with Flying Kurbmaster 2: Your trying to fill a void. You don't want to hear what I REALLY think, because it sounds all preachy. I agree with him. You need God in your life. You know all this stuff, that I am learning from YOU. You don't see it, because you have poor self worth and a lack of self esteem. Maybe you were deprived as a child or credit cards don't feel like real money. The bottom line is you are trying to reward yourself. Your avoiding the truth and you can't say no. You compare yourself to man and you try to keep up with the "Jones". But, the only one you need to compare yourself to in life, is God. Buying this stuff isn't going to make you happy. You need to take care of the problem. Only you know what that is.
You just made comments on this site in the past and I research different topics on this site instead of posting the same thread. Anyway, your comments were very helpful. You do a nice job.Thank you.
In other words, Caseyc, I agree with Flying Kurbmaster 2: Your trying to fill a void. You don't want to hear what I REALLY think, because it sounds all preachy. I agree with him. You need God in your life. You know all this stuff, that I am learning from YOU. You don't see it, because you have poor self worth and a lack of self esteem. Maybe you were deprived as a child or credit cards don't feel like real money. The bottom line is you are trying to reward yourself. Your avoiding the truth and you can't say no. You compare yourself to man and you try to keep up with the "Jones". But, the only one you need to compare yourself to in life, is God. Buying this stuff isn't going to make you happy. You need to take care of the problem. Only you know what that is.
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