Hello everyone! Today, I want to talk about how cheap it is. This is a bit unusual because being cheap gives you a huge advantage in achieving financial independence. However, we are all at a different stage in our journey. Cheap was very useful to me when I was young. However, we are older and richer now. The days of cheapness are long gone. Why deprive yourself? You can’t take it with you, can you?
This year, we’re on track to spend about $65,000. This is much less than 3% of our net worth. At this rate, we’ll have plenty of money left when we get out. Actually, I don’t think this is a big problem. If we have extra money left at the end, we can give it to our son and support some charities. But we also want to have fun spending some money while we can.
Delayed gratification
I have practiced deferred gratification and preached its virtues for many years. If you can invest your income instead of spending it frivolously, you will be more financially secure. After years of practice, delaying gratification has become a deeply ingrained habit. My first instinct is to postpone purchases or buy something cheap. This has served me well and we have steadily increased our net worth over the past 30 years.
Recently, Ms. RB40 complained that we are too cheap and I agree. She’s been cheap since she was little, too. It is difficult for her to spend money on herself. (Yes, I know I’m very lucky.) But now we’re very comfortable financially. We should spend more and help the economy. So how can we overcome our cheapness?
Economic inflation
Fortunately, I’ve found that being cheap is an easy problem to overcome. It only took elections to move us toward instant gratification. President Trump promised to impose huge tariffs on imports. Next year, everything will be 10-25% more expensive. If we delay the purchase, we will pay a lot. Better to buy now because inflation is coming back.
That’s why we got a new laptop, a speaker, a fancy chef’s knife, a bass guitar, and Hair regrowth kitexercise dumbbells, elbow braces, rechargeable batteries, multivitamins, gloves, and some cute ceramic mugs. Turns out, spending more is pretty easy. However, I still gravitate towards the cheaper end of the price spectrum.
The only top shelf item on this list is… Acry Forge Chef’s Knife. We probably could have paid less for a similar knife, but we want to support local artisans. This knife cuts like a dream. It’s a huge upgrade from the Calphalon chef’s knife we’ve used for the past 25 years. Ms. RB40 loves it. I’ll keep the Calphalon though. It has its uses.
We got this knife at the holiday market in Nautical Art Works Northwest. There were many interesting arts and crafts items for sale. Ms. RB40 saw a ceramic plate she liked for $90, but the color was a little different. I promised I would make one for her next quarter. I think I’m not petty yet.
First world problem
However, this is a first world problem. It’s easy to overspend. Now that we are financially comfortable, I don’t mind spending more on things we use daily. A good chef’s knife will last a lifetime and we use it multiple times a day. You have truly improved my life by making Mrs. RB40 happy. hahaha…
Other things I bought had been on my list for a long time. There is no point in delaying gratification if the price is going to rise significantly next year. I think a lot of people feel this way. The line at Best Buy was crazy.
In any case, if you are having difficulties spending money, just think about the upcoming tariffs. Next year, it will cost more. If you want something, get it now.
Do you have a problem with it being too cheap? It’s hard to change your habits.
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Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects all over the USA so check them out!
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