Comments on: Finding the Balance Between Life and Money http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm Building Wealth through Saving and Investing Thu, 18 Mar 2010 23:42:59 -0400 http://wordpress.org/?v=abc hourly 1 By: Tommy http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-8028 Tommy Mon, 09 Jul 2007 14:55:57 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-8028 <strong>FT</strong>, your idea of spending excess money above savings and bills is exactly how I plan to go about things once I start work. What I have left over monthly will either be spent immediately or saved for larger purchases. My reasoning is that I've spent so many years working hard in school to put myself in position so that I could afford to save for my future while still getting to enjoy the hobbies I want. That being said, I also think there are some ways to minimize the cost of your hobbies without sacrificing enjoyment. <strong>1. Consider a hobby's cost cost to enjoyment ratio</strong> Every hobby has a certain cost associated with it and a certain amount of enjoyment for a particular individual. When thinking about a new hobby, why not consider this? If Hobby A is a costs <i>far</i> less and is almost as enjoyable as Hobby B, why not choose Hobby A! But on the flip side, if Hobby B is more expensive than Hobby A but far more enjoyable, don't deprive yourself! Choose Hobby B. <strong>2. Upgrade yourself before you upgrade your equipment</strong> A trap that many people fall into with their hobbies is buying bigger and better gear (upgrade-itis) in order to make them better at their hobby. While it's true that better gear often means better performance, more often than not, improving on fundamentals will make more of a difference while costing much much less. <i>Learn</i> your hobby! FT, your idea of spending excess money above savings and bills is exactly how I plan to go about things once I start work. What I have left over monthly will either be spent immediately or saved for larger purchases.

My reasoning is that I’ve spent so many years working hard in school to put myself in position so that I could afford to save for my future while still getting to enjoy the hobbies I want.

That being said, I also think there are some ways to minimize the cost of your hobbies without sacrificing enjoyment.

1. Consider a hobby’s cost cost to enjoyment ratio

Every hobby has a certain cost associated with it and a certain amount of enjoyment for a particular individual. When thinking about a new hobby, why not consider this? If Hobby A is a costs far less and is almost as enjoyable as Hobby B, why not choose Hobby A! But on the flip side, if Hobby B is more expensive than Hobby A but far more enjoyable, don’t deprive yourself! Choose Hobby B.

2. Upgrade yourself before you upgrade your equipment

A trap that many people fall into with their hobbies is buying bigger and better gear (upgrade-itis) in order to make them better at their hobby. While it’s true that better gear often means better performance, more often than not, improving on fundamentals will make more of a difference while costing much much less. Learn your hobby!

]]> By: Canadian Money http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1340 Canadian Money Wed, 28 Mar 2007 19:21:57 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1340 There is no perfect way or right answer...there is only my/your preferred way. If were lucky we find a good balance between spending and saving. The energy of youth disappears over time. We can only do some things when were still young enough. When I was young I borrowed money for my first few cars. I will always remember driving that 1968 Firebird on the beach at Long Beach with two wheels in the water. Can't do that anymore. I borrowed money to take flying lessons. My first date with my wife was an evening flying a rented two seater plane. I now have bragging rights! I think we should all aim for a "good balance" however each of us define that. There is no perfect way or right answer…there is only my/your preferred way.

If were lucky we find a good balance between spending and saving. The energy of youth disappears over time. We can only do some things when were still young enough. When I was young I borrowed money for my first few cars.

I will always remember driving that 1968 Firebird on the beach at Long Beach with two wheels in the water. Can’t do that anymore.

I borrowed money to take flying lessons. My first date with my wife was an evening flying a rented two seater plane. I now have bragging rights!

I think we should all aim for a “good balance” however each of us define that.

]]> By: Investoid » Blog Archive » No Posts for a Week http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1312 Investoid » Blog Archive » No Posts for a Week Tue, 27 Mar 2007 21:10:21 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1312 [...] I’ve been fortunate to travel a lot in the past 12 months, and my wife and I are already looking forward to whereever we decide to go next. There’s a good discussion that’s been going on at Million Dollar Journey on living life now versus later, which I encourage you to read. Enjoy and see you in a week. [...]

[...] I’ve been fortunate to travel a lot in the past 12 months, and my wife and I are already looking forward to whereever we decide to go next. There’s a good discussion that’s been going on at Million Dollar Journey on living life now versus later, which I encourage you to read. Enjoy and see you in a week. [...]

]]> By: FrugalTrader http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1306 FrugalTrader Tue, 27 Mar 2007 10:29:36 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1306 <b>QCash</b>, when you get the chance, can you send me an email? webmaster at milliondollarjourney.com QCash, when you get the chance, can you send me an email? webmaster at milliondollarjourney.com

]]> By: Links - 27/03/06 « Krugergold Finance http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1304 Links - 27/03/06 « Krugergold Finance Tue, 27 Mar 2007 09:29:53 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1304 [...] Finding Balance(Million Dollar Journey) How do you find the balance between living life and saving money? With this blog about saving money and increasing my net worth, it’s easy for me to get carried away and stop spending money on things that are enjoyable in life. [...]

[...] Finding Balance(Million Dollar Journey) How do you find the balance between living life and saving money? With this blog about saving money and increasing my net worth, it’s easy for me to get carried away and stop spending money on things that are enjoyable in life. [...]

]]> By: Q Cash http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1297 Q Cash Tue, 27 Mar 2007 02:58:36 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1297 One of my wife's requirements early on (in the pre-marital discussions) was that she wanted to have at least one nice (Read all inclusive) vacation a year. She made the comment when we were looking at houses because, being the wise and frugal one, she did not want to buy a monster house with a huge mortgage so we couldn't afford to travel. Both she and I enjoyed travel as part of our single days and wanted to continue. As I contemplated "early retirement", my wife again reminded me of her requirement for one nice vacation a year and that we would have to allow for those costs. With two kids, the destinations may have changed, but the goal remains the same. My goal is to have two nice vacations a year. One to a sunny destination in the winter (just about the time seasonal affected disorder kicks in) and one in the fall (albeit a driving vacation to somewhere we haven't been before). So far, we have managed the first one this year, and have plans for another in October. I agree with the comment above about remembering the holidays, not remembering the purchased lunches. We are frugal with our everyday spending so we don't sweat the big purchases for the quality of life stuff. Q One of my wife’s requirements early on (in the pre-marital discussions) was that she wanted to have at least one nice (Read all inclusive) vacation a year. She made the comment when we were looking at houses because, being the wise and frugal one, she did not want to buy a monster house with a huge mortgage so we couldn’t afford to travel.

Both she and I enjoyed travel as part of our single days and wanted to continue.

As I contemplated “early retirement”, my wife again reminded me of her requirement for one nice vacation a year and that we would have to allow for those costs. With two kids, the destinations may have changed, but the goal remains the same.

My goal is to have two nice vacations a year. One to a sunny destination in the winter (just about the time seasonal affected disorder kicks in) and one in the fall (albeit a driving vacation to somewhere we haven’t been before).

So far, we have managed the first one this year, and have plans for another in October.

I agree with the comment above about remembering the holidays, not remembering the purchased lunches.

We are frugal with our everyday spending so we don’t sweat the big purchases for the quality of life stuff.

Q

]]> By: Jon Lee http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1294 Jon Lee Tue, 27 Mar 2007 01:32:25 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1294 @Clayton You and your wife are a great role model that a lot of people can learn from! @Clayton You and your wife are a great role model that a lot of people can learn from!

]]> By: David http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1293 David Tue, 27 Mar 2007 00:54:57 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1293 ^.......balance.......^ ^ Don't forget that life can toss all sorts of impediments in your path. Carpe Diem -- a term as old as history itself, should not be forgotton. Don't spend so much time worrying about the future, as it may never come, take time to enjoy youth while you still can. Enjoy the unspoilt before some one spoils it. Ski while your knees are still solid, see the ends of the earth before your kids fill your lives with new joys. Put a little aside for a rainy day, (or for retirement :-) ). David ^…….balance…….^
^

Don’t forget that life can toss all sorts of impediments in your path. Carpe Diem — a term as old as history itself, should not be forgotton. Don’t spend so much time worrying about the future, as it may never come, take time to enjoy youth while you still can. Enjoy the unspoilt before some one spoils it. Ski while your knees are still solid, see the ends of the earth before your kids fill your lives with new joys. Put a little aside for a rainy day, (or for retirement :-) ).

David

]]> By: Clayton http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1292 Clayton Mon, 26 Mar 2007 22:57:08 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1292 My wife and I have had that conversation countless times. Starting out with nothing, we are on track to be financially free at a very young age but sometimes we struggle to maintain focus. Usually only one of us struggles at a time so the other one is around to help refocus. When we're struggling we talk about our current quality of life compared to even 2-3 years ago and realize that we are still living a quality of life much higher than we thought we would at our age (28) and we do so with no debt, 2 older cars paid off, some solid investments, etc. We make it a point to take a nice vacation every year and that big vacation memory keeps us going...you dont remember the 3-4 lunches per week you buy so we skip those and pack our own, but the trips to mexico, or kayaking off of Vancouver Island...those we talk about and are worth every cent. It's about priorities...live life but skip the inconsequential filler. My wife and I have had that conversation countless times. Starting out with nothing, we are on track to be financially free at a very young age but sometimes we struggle to maintain focus. Usually only one of us struggles at a time so the other one is around to help refocus. When we’re struggling we talk about our current quality of life compared to even 2-3 years ago and realize that we are still living a quality of life much higher than we thought we would at our age (28) and we do so with no debt, 2 older cars paid off, some solid investments, etc. We make it a point to take a nice vacation every year and that big vacation memory keeps us going…you dont remember the 3-4 lunches per week you buy so we skip those and pack our own, but the trips to mexico, or kayaking off of Vancouver Island…those we talk about and are worth every cent. It’s about priorities…live life but skip the inconsequential filler.

]]> By: Canadian Dream http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1290 Canadian Dream Mon, 26 Mar 2007 22:23:42 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1290 FT, Good topic. I think you hit the balance point when you realize you have "enough" of anything. Enough to be happy yet not too much to be a problem. Then something will happen and you will find yourself off that balance point again. For example, my wife is starting to understand that I'm serious that I want to stop working at 45. So she mentioned that she wants to travel more in retirement. I estimated that little remark added $60,000 to the savings target. O well back to numbers again. CD FT,

Good topic. I think you hit the balance point when you realize you have “enough” of anything. Enough to be happy yet not too much to be a problem.

Then something will happen and you will find yourself off that balance point again. For example, my wife is starting to understand that I’m serious that I want to stop working at 45. So she mentioned that she wants to travel more in retirement. I estimated that little remark added $60,000 to the savings target.

O well back to numbers again.

CD

]]> By: Causalien http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1280 Causalien Mon, 26 Mar 2007 16:19:36 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1280 I too faced this dilemna. It's a delicate balance between enjoyment now and enjoyment in the future. The answer came to me when I reached the conclusion of what my purpose in life is (by sitting down for 30 minutes and write down everything I think could be a life purpose until one of them put tears in my eyes.) With that in mind, I then understand what are opportunities that will need to be paid for now and what can be saved till later. I too faced this dilemna. It’s a delicate balance between enjoyment now and enjoyment in the future.

The answer came to me when I reached the conclusion of what my purpose in life is (by sitting down for 30 minutes and write down everything I think could be a life purpose until one of them put tears in my eyes.)

With that in mind, I then understand what are opportunities that will need to be paid for now and what can be saved till later.

]]> By: FrugalTrader http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1279 FrugalTrader Mon, 26 Mar 2007 15:54:15 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1279 Investoid: I like that "enjoy life now while ensuring that you're not suffering as a result later". Good way to live. Investoid: I like that “enjoy life now while ensuring that you’re not suffering as a result later”. Good way to live.

]]> By: Investoid http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1275 Investoid Mon, 26 Mar 2007 14:43:18 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1275 My wife's a travel bug (and I must admit I like to as well), and we plan at least one major vacation every 12-18 months. I personally think it's important to enjoy life now while ensuring you're not suffering as a result later. As with all our expenses, we have a monthly budget that can be spent periodically or saved up for larger purchases. We've also decided to make extra income for things we want that are outside our budget or that we want sooner. We'll never to get anything quicker though. My wife’s a travel bug (and I must admit I like to as well), and we plan at least one major vacation every 12-18 months. I personally think it’s important to enjoy life now while ensuring you’re not suffering as a result later.

As with all our expenses, we have a monthly budget that can be spent periodically or saved up for larger purchases. We’ve also decided to make extra income for things we want that are outside our budget or that we want sooner. We’ll never to get anything quicker though.

]]> By: j&w http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1269 j&w Mon, 26 Mar 2007 13:52:00 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1269 I have no problem being cheap on the small stuff but good, experience-rich vacation is a must in our household. I actually work with people who don't even take their vacation time so they can receive pay for that time instead. They're out of their minds. I have no problem being cheap on the small stuff but good, experience-rich vacation is a must in our household. I actually work with people who don’t even take their vacation time so they can receive pay for that time instead. They’re out of their minds.

]]> By: Jon Lee http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1265 Jon Lee Mon, 26 Mar 2007 11:59:29 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1265 People in debt and are financially irresponsible really irritate me. I knew so many people that complained about being in debt or having no money for food because of university tuition - only to spend a couple hundred dollars every week on alcohol... People in debt and are financially irresponsible really irritate me. I knew so many people that complained about being in debt or having no money for food because of university tuition – only to spend a couple hundred dollars every week on alcohol…

]]> By: FrugalTrader http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1264 FrugalTrader Mon, 26 Mar 2007 11:22:17 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1264 Hi Luc, I don't have a planned retirement age YET. But I will stop the 9-5 office grind when I feel that i'm financially ready (aka. as soon as possible). :) FT Hi Luc,

I don’t have a planned retirement age YET. But I will stop the 9-5 office grind when I feel that i’m financially ready (aka. as soon as possible). :)

FT

]]> By: Luc http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm/comment-page-1#comment-1263 Luc Mon, 26 Mar 2007 09:12:36 +0000 http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm#comment-1263 When do you plan to enjoy your savings? If you plan to retire by 45, when your health should still allow you to lead an active vacation, then I think that it's worth living a frugal life and working 16 hours a day by then. When do you plan to enjoy your savings?
If you plan to retire by 45, when your health should still allow you to lead an active vacation, then I think that it’s worth living a frugal life and working 16 hours a day by then.

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