Make The Choice

My wife, Rooty, and I are far from perfect savers.  We don't scrimp and save every penny.  We eat out too much.  And occasionally, we buy stuff we never use and never will.  (The latest: A Costco ham.  What were we thinking??)  But one thing we did do right was make a very important, conscious choice early on.
 

For us, the choice had more to do with who we wanted to be than with early retirement.  Use any motivation you want, but be deliberate about what pill you buy, Neo:

This may be harder than you think.  Few of us would ever say "I am materialistic and a social climber."  Most of us think of ourselves as down to earth.  I wouldn't argue with that.  Deep down, we pretty much all have solid values.  But unless and until we are deliberate about how we spend our money, it is surprisingly easy to waste.

Okay, now for scoring.  I will generously allow you one status answer on the assumption that maybe you just happen to be a car enthusiast.  Or maybe you work in the fashion industry.  Or maybe you are an oenophile.  (And if you are an oenophile, you should be locked up in prison.  That's disgusting.)  However, more than one top box answer, and I'm guessing you are more status seeking than freedom seeking.

"Whoa, wait just a minute!  That's harsh judgment, Deadwood.  Listen, I have a long commute, it is much nicer to drive a Mercedes than a Honda.  And I'm not into fashion, but Banana Republic clothes are much better quality than Old Navy."

Valid arguments, right? Well, not necessarily. For instance, studies have shown that commuters aren't any happier driving fancy cars than basic ones.  And Consumer Reports did a study years ago that showed little quality difference between Banana Republic, The Gap and Old Navy.  If you consistently spend your money on higher status items, it is time to stop and think.  Find your real motivation.

Yeah, I know.  It's no fun driving to your high school reunion in a car so old it has actually faded.  You work hard, you climbed the ladder, and heck, you probably earn more than all those peons you want to impress.  You have pride, why not display your success?

I can think of two really good reasons.  First, it's bad for early retirement.  That reason is pretty well covered in Rule 2: Save Like Crazy.  The second reason is that it is bad for the soul.  I don't think I can ever cover that adequately, but I will take a quick shot.

Remember when I said Rooty and I made our conscious choice based on who we wanted to be?  Back when we were first dating, I wanted to buy her a birthday present.  She had an old worn out purse that she wanted to replace, so I went to Macy's and found one I thought would dazzle her.  It was a tres foo foo, very expensive Fendi bag.  (My previous girlfriend would have loved it.)

Rooty opened her gift, smiled briefly and thanked me.  She never used it.  I was really frustrated.  That stupid purse cost me a lot.  And besides, I had pride, I wanted her to show it off.  But gradually, I came to understand her perspective.

There is real value in living a humble life.

It took me years to truly get that.  I had to unwind a lot of assumptions and spending habits.  But once I understood, it changed my life.  As for that purse, it spent the next ten years in her closet.  We finally had a good laugh giving it to Goodwill.

(Okay, it turns out, we didn't give the purse to Goodwill.  After reading this post, Rooty went to our closet and pulled it out.  If anyone wants a 25 year old Fendi purse, let me know.  It's never been used and my wife may be willing to negotiate.)

Okay, follow up question.  This one is from a real life situation, so pay close attention:

Avoid the top box.  Ditch your pride.  Pride isn't good for much beyond basic personal hygiene.

 

You think I'm kidding, but I'm not.  Louis. Vuitton. Dog. Leash.