Regrets when you are financially free?

Discussion in 'Investor Psychology & Mindset' started by Rentvester, 27th Jul, 2018.

Join Australia's most dynamic and respected property investment community
  1. Rentvester

    Rentvester Well-Known Member

    Joined:
    9th Aug, 2017
    Posts:
    127
    Location:
    WA
    Hi everyone,

    I got a quick question for those who have 'been there done that'.
    I am at an accumulation phase, and just curious:

    Do you ever regret on not spending on some things after accumulating the said wealth?
    No to a night out, not spending on that nice car, going for a holiday trip with mates/spouse.

    I am having difficulty striking a balance between saving and spending lately and am having mixed thoughts: Whats the point of being financially free when you miss out on experiences you have in your life which cant be bought?(cliche, i know)

    I guess the question is how much sacrifice did you make accumulating wealth and how much of it do you regret?
     
    Last edited: 27th Jul, 2018
  2. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    Time with people you love is priceless, you can't get it back, and it does not have to cost much. I would encourage you to make your family and friends a priority.
    I regret a little not buying a more expensive phone earlier with better photo capacity. I do have more than enough memories and photos though, and I'm not a great photographer!
    Nice cars are a little over rated. You can get a nice enough car second hand.
    Holidays do not have to cost much either.
    Do the best you can, we all have some things we think we would change if we could do it all over again.
     
    Jelly01, MWI, spludgey and 3 others like this.
  3. kierank

    kierank Well-Known Member

    Joined:
    20th Jan, 2016
    Posts:
    8,414
    Location:
    Gold Coast
    My only regret is not getting to “financially free” earlier :D.
     
  4. Chris Au

    Chris Au Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    1,247
    Location:
    NSW
    The balance between saving for financial independence and living a life is discussed a lot on FIRE (Financial Independence, Retire Early) forums. I am about to read the book 'Meet the Frugals'. Some thoughts I'm getting from the comments are:
    • it is a change in mindset - what we currently think we 'need' we may not if there are other ways of getting the same satisfaction (eg do you need to drive a car less than 5 yrs old if your 10yr old car is doing just fine, do you need to stay in a $300/night hotel if a $150 night hotel is available - you're only sleeping there!),
    • it is a balance between living now and saving forward (I'm taking the middle road, I realise it will take longer but conciously think about small things to make today better),
    • know what your end goal is and think about different ways of getting there (lots of ideas on the www!),
    • don't over-stretch yourself (important in this climate of low interest rates, which will invariably rise in coming years)
     
    wylie, Anne11, HomePage and 1 other person like this.
  5. Chris Au

    Chris Au Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    1,247
    Location:
    NSW
    Great! Like it. (But what are you doing typing away at 1am!)
     
  6. Chris Au

    Chris Au Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    1,247
    Location:
    NSW
    @Rentvester , I'm wondering if the you're trying to make is too big at once? Maybe break it down? (unsure about your approach, food for thought only)
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,667
    Location:
    Australia wide
    Chris Au likes this.
  8. chylld

    chylld Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,701
    Location:
    Sydney
    I regret not spending on that nice car earlier. Not for the car itself (as @hobartchic suggests above, most cars are nice enough for most people) but for the experience that it can bring. Buying my first Lotus opened me up to a calendar of trackdays, meets and tours that rekindled my childhood dream of becoming a racing driver and I now wish I had started years earlier as I have never had so much fun learning a craft.

    Passing up purchases that were made just for the sake of possession will never bring true regret. However, passing up purchases that could have opened up a world of experiences is a catastrophic, immeasurable loss.

    Spend what is necessary for you to live out your dream experiences, and invest the rest :)
     
    Babesoft, craigc, Propin and 7 others like this.
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,598
    Location:
    Gold Coast (Australia Wide)
    An Rkism ( noooooooooo not archaic - Robert Kyosaki)

    "if you get wealthy by being cheap, when you get wealthy you will still be cheap"

    Being frugal is ok, but I have seen one version of what he means here.

    Eg sitting in a dark cold very expensive home but not running the heater to save a few coins for the already large pile.

    Another interpretation of this one applies specifically to things like home loans - "cheaper" often has a lower immediate and therefore obvious financial cost, but commonly also means that the product isnt actually best for purpose/goal and ends up costing 10s to 100s of thousands of dollars
    ta
    rolf
     
    gty12, icic, Propin and 3 others like this.
  10. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    6,776
    Location:
    ....UKI nth nsw ....
    If you start out low in the pecking order --then the emphasis on economic inequality of missing out does not matter ..I always put my family first and never thought about the sacrifice ,and now compared with 25 years ago-travel is cheap -what you missed out back then -you can make up for now..
     
    Wanttoretire, wylie and Silverson like this.
  11. Shazi

    Shazi Active Member

    Joined:
    4th Jan, 2016
    Posts:
    35
    Location:
    QLD
    I have thought about what I could have done differently many times now that I am where I am . The one thing that constantly comes to mind with lots of regrets is , I could have spent more time with my children. My hubby and I arrived in Aust and were so focused on becoming financially independent ASAP. We worked 2 jobs each with 3 kids under 10. There was a lot of juggling, we did not take many family holidays which we could have ( now I cant reason why we didn't ) . I continually remind my now adults children who are on their own on the property journey of this lesson . It really doesn't seem like my sacrifice but more of what my children had to miss as kids that I regret most .
    I hope your journey is a more balanced one .
     
    Jelly01, icic, Babesoft and 7 others like this.
  12. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,673
    Location:
    Perth WA + Buderim Qld
    It depends on your priorities - i think it's important to spend on things that actually make a difference to your life. Once you're on the way a bit of life style creep is okay.

    We love traveling with (and without) our kids so we spend money on that, and also making our home comfortable - we recently renovated our kitchen and put in a wood fire - both have been awesome investments in ourselves. We still aim to save one of our incomes so we're not blowing the whole lot.
     
  13. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    I read somewhere, you'll never hear a man on his death-bed say "I wish I spent more time at work."
     
    gty12, icic, samiam and 8 others like this.
  14. Chris Au

    Chris Au Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    1,247
    Location:
    NSW
  15. Chris Au

    Chris Au Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    1,247
    Location:
    NSW
    I agree, about being smart - what something may look like initially, may be something entirely different after some investigation.

    Some very (self made) wealthy people I know will buy their jeans at Lowes but drive expensive sports cars - as @chylld says, it's about the experience the item brings that brings it's worth. Like it and will add it to my thought process. Cheers,
     
    chylld likes this.
  16. inertia

    inertia Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,617
    Location:
    Newcastle, NSW
    Right now I regret wasting money through my 20s. I still managed to take 4 years off as a stay at home dad, and both my wife and I are working 4 days a week so we can spend more time with the kids, and be more involved at school (at least until they are all at highschool!) What we are doing now doesn't feel like sacrifice, it feels balanced. What I did during my 20s (working hard and long hours, but not saving the $$$) feels like it was wasted.

    Cheers,
    Inertia.
     
    Renorookie and Jess Peletier like this.
  17. KinG3o0o

    KinG3o0o Well-Known Member

    Joined:
    17th Jul, 2017
    Posts:
    1,074
    Location:
    Sydney
    depend on your definiton of a nice car.

    2nd car is good enough is true but good cars are few and far between, some u have no choice but buy new. some u have no choice but to buy used.


    biggest regret is i am still working now. financial freedom dont mean no work lol..
     
    Last edited: 27th Jul, 2018
    krispy likes this.
  18. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    My sleeping pattern is rubbish (some of it's pain that I'm dealing with but it flares sometimes). And, just for the record I like nice cars! I just wouldn't feel bad about a second hand one, is all.
     
  19. AndyPandy

    AndyPandy Well-Known Member

    Joined:
    23rd Feb, 2017
    Posts:
    607
    Location:
    Australia
    Simples, I like to have a good time but I like to spend the least amount required to have a good time.

    So for instance when people at work go to the pub for lunch on Fridays, if I don't like the pub that they're going to, I just buy a sandwich or food that I do like and have lunch at work along with free beers from my work fridge. This way I've had a good time AND spent the least amount required to have a good time. On other occasions if my colleagues are going to a a pub that I like, I'll just join them. However I make sure I eat out only once/ max twice a week.

    Like with everything else, there should be a balance. However what is balanced to you might be looked down upon by others. Some people at work think that I'm cheap. But hey, I don't have to ask for advance pay like some of them do. So the joke is really on them.

    I don't really feel like I'm sacrificing anything because I'm happy with my lifestyle. I find that I enjoy things more because I don't indulge excessively in them. Maybe if you're feeling this way, you need to change something.


     
    oracle likes this.
  20. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    If your choices are not making you happy now then you should examine them.

    For example, I don't drive much so I have no need for a fancy car. I drive a 24 year old Daihatsu Charade that runs well and I enjoy driving it.

    I also enjoy a night in on the couch watching a movie that I got free at the DVD machine down the street :p

    Fancy clothes don't make me happy.

    My only regret is not travelling more. The issue isn't money for that, it's time. I am just finishing up a back to back reno and build that has taken up all my free time. I should be back to travelling next year.
     
    Harry30 likes this.