Wealth vs "penny pinching" ?

the recent thread. Money Hacks

Got me thinking (again) what is wealth? And how to achieve it for YOU

MY definition of wealth is... To be able to do whatever I want , whenever I want .

For us we achieve that maybe 80% of the time . (I would like to travel overseas EVERY year in business class and update the BMW every 2 years .... Hubby is just happy to provide for his princess . He is not a traveller and I am seriously fighting with him to update the 2004 falcon ute for work )

We do this by being "business minded" of (most) dollars. Of course we blow cash as much as some... But generaly each dollar has to work as hard as we do. .
It is not a case of being tight , but more a case of "better in my pocket earning $$$ than being gone "

 

My idea of financial wealth..
To walk into any restaurant and order what ever you like on the menu, without a care what the cost will be.

 

@moyjos - I agree but will add: Wealth for me, is being able to do what I want, when I want, AND knowing that I will be able to make that choice again next week / month / year etc.

We are still in "sacrifice" mode because if we tried to live as we "want", right now, it would be very short-lived indeed! But with a few more years of sacrifice, we open up a world of options.

Everyone will have different choices re their wants, but for me, the things that I am most likely to "want" at any given time are:
- travel, and lots of it (not just 1-2 week trips and not just to SEA countries such as Indonesia and Thailand)
- a nice home to return to and use as a base
- good health (whatever that entails - gym membership, regular massages, or surgery or treatment if required... whatever)
- regular trips to visit family (/ escape the heat) domestically - BNE, SYD, MEL etc

After that - just a pleasant life (less easy to describe in specifics as it's even more changeable!)

 

Just like the New York cuts that we had tonight (Mrs No Mates doesn't show me price tags) & I don't ask.

(It was melt in your mouth and covered in mushrooms) - to die for.

 

Penny pinching is great to start your mindset but that is only going to make you pennies at the end of the day.

I would rather look at ways to be $1,000 better off than $1.53, however if you cant get the small stuff right it makes it more difficult action the big stuff.

As much as it would be great to be mega rich (e.g. 100M plus net worth) it is highly unlikely I will make it there. Reason being if I have a comfortable self sustaining lifestyle that allows me to do what I want to do, what is the point to get more?

There is more to life than money which sometimes I feel is not thought of enough here.

FYI I am not saying I am not interested in building wealth but at 10M of unencumbered assets, which is a long way from what I classify as mega rich and returns 5% p.a that is $500,000 a year. You would be hoping for more than 5% as I would be aiming for around the 10% mark or around 1M.

This 500k would allow you to eat at beautiful restaurants when you wanted to, fly internationally (even first class), buy luxury new cars on a regular basis etc etc. This is why I feel that I will not make it to the mega rich status as I am in this for a comfortable lifestyle for my family and not in it for my ego.

 

I think this is a good benchmark to use.
It's happened gradually over the years with us.
I don't go to fine dining or fancy restaurants, (don't have the appropriate clothing), but tend to look at the more expensive items first on the menus now rather than cheapest.
Would've never paid $60-$70 for a steak 10 years ago.

 

Still have to change from that 'spending' mentality.

It would have been very hard to find as well.

 

I don't have a concept of wealth and I don't chase money for the sake of having money. I accumulate money because of the interesting things I can do with the money. One example is a run down dump that I bought that had a yard and 2 sheds full of junk. It was an interesting, challenging and enjoyable project to turn that property into a nice home for someone to live in. Now I am in the process of building a townhouse in the unused back yard. I am finding that process really interesting too.

Of course a criteria is that my 'interesting' projects will be profitable but there are easier and more boring ways to make money.

 

Good on you.
If you have made it then why not enjoy some of the spoils, you cant take it with you.


For me personally wealth is financial freedom of course, but its more than this, its a sense of achievement, when your kids tell you they are amazed at your achievements well that's pretty much the icing on the cake for me.

I read somewhere an important ingredient for happiness is to have purpose and goals in your life, I am a believer....

Here is my list/my goals that I have pursued/still pursuing, I started property investing at 41 year, never too old.

1st Goal
Give away day job - done (9 years ago)

2nd Goal
Partner give away day job - done (6 months ago)

3rd Goal
Become a property developer for fun and play money - done (project 4 completed and onto project 5)

4th Goal
Set up a business, management fund/BA service in US - done (yet to source 1st property)... damn that competition

5th Goal
Set my children up financially and teach them what I know - This is still a work in progress and going to be a challenge



MTR

 

I agree - it's the process that's fun, and what drives me, not the 'making money' side of it. But it's rewarding to see the money coming as a side-effect of my experiments!

 

I'm a definite penny pincher and always look at the price and negotiate where ever I (reasonably) can.
However, I don't think that this is in conflict of either being wealthy, having a wealthy mindset or treating myself.
A can treat myself (and others, mainly my wife) and I do enjoy it, however I'm always aware that this is an out-of-the-ordinary treat. If anything though, this adds to my enjoyment and doesn't detract from it.

For me it's that I could afford whatever I wanted, whenever I wanted it if I wanted it enough.
That's an important difference to me. Just knowing that I could makes me feel wealthy, no need to actually do it.

 

I like this - I want lots of things, but am not prepared to pay above the odds for them. If it's not value, I don't want it 'enough'.

The only two things I pay too much for are getting my hair done every couple of months, and sometimes my nails. These things are my only pointless splurges and they make me happy and keep me from looking like a complete feral, so it's actually probably an investment.

In my marriage.