Trending
Who doesn’t like a good splurge?
I know I do. I’ve found all kinds of ways to justify buying something that is just a teeny tiny bit above what I know I “should” spend. Especially for something I don’t really need. For example, I’m a total sucker for using those points at department stores to create a personal discount on something pricey. Yes, I play the game of putting the item in my cart and waiting for it to go on sale. Then I get reminders from the store to check out. Then I look at it again. I hesitate. But what pushes me over the edge is often that balance in my account showing I have “earned” credits thanks to those points that I got.. from spending money there. And I know I can always return if it I have regrets after clicking on the “buy” button.
But what if it is more than a one-off? What if it is not as easy as returning the item? What if you make a decision to upgrade your life in a way that changes all of your economics. Why are we all so afraid of giving ourselves permission to live a little less frugally?
For my family, the big decision came right as we were finishing up the payments for our second child’s college tuition. We had the money for child #3 so we were finally off the tuition treadmill. Hooray cashflow! We had always been wary of a permanent-ish lifestyle upgrade given that we were raising three kids in New York City. But now we really didn’t have anything holding us back.
And so we took the plunge. We joined a golf club and have never looked back. The timing, right before the pandemic, turned out to be spot on. We were able to have an outdoor place to go and have “Covid-19 safe” activities during the pandemic. Since then we have both worked on improving our golf game, enjoying the pool in the summer, and making new friends. It’s been a great way investment in our lifestyle.
But lifestyle upgrades are often discouraged in the personal finance press. I think it depends. Having lost my mother when she was just 62, I always think how happy I am that she did do many of the things she wanted, including a lot of “bucket list” travel and an apartment in New York City right near Lincoln Center.
I recently contributed to a piece in U.S. News and World Report by Emily Sherman about what is being called “Revenge Spending”. It is similar to the idea of a lifestyle upgrade but tied to having felt the pinch of a tight budget that you want to break out of now that you can. You are tired of feeling deprived. It’s time to live a little!
The truth is that there is a balance. You may think comments are a little tough but the caution comes from experience. Once you level up, as we did with our golf club membership- it is tough to cut things that come to mean so much to you. So they can add a level of stress if you aren’t in a place where the added expense will be sustainable in the long run. No one can predict with 100 percent certainty their financial future. These choices are made based on an economic snapshot that can always change. But don’t be so worried about the future that you don’t allow yourself to live your life now.
Related: Exit Strategies and How to Sell Your Business with Laura Gassner Otting