Splurging in life

[nursebee]

Generally I am too practical to splurge, possess none of the typical toys that many get.
No fancy guns, cars, boats, planes. Generally I just own land, homes, and the tools to care for them.

Trading and investing has brought us to the point that many would consider financial independence. I am considering buying a very nice automobile. It would be the most ostentatious thing I have ever done, very out of character. From a financially based utilitarian perspective there is no way to justify this car.

Years ago when I first started having blind success in the market I read about pulling some money out from time to time to buy stuff that would not go away. I considered a HOG, did not buy one, and the money went away. It would be nice to have the HOG.

Ceteris paribus, in 1.5 years we can quit work and spend more money than we do now and still die with more money than we have now.


My question for those here: How do you handle rewarding yourself in the market?
What percent of years income do you splurge with?
What percent of assests?
How do you think of such things?

Private threads for discussion okay with me, I will keep such things private.

 

[Baron]

Here are some of my personal thoughts on spending:

1. You should only buy things that truly "move you"... meaning those things that you have a real "gut feeling" about and a burning desire to own. It's amazing how easy it is to contemplate the purchase of something for reasons other than actually wanting it ourselves, which brings me to the next point:
   
   
2. Don't buy things for the sake of how others will think about you or how they'll think about the thing you're buying. Before making the purchase, ask yourself, "Would I really buy this thing if I was the only person around who would ever see it?"
   
   
3. Don't spend excessive money on things that you use infrequently and can't avoid purchasing. Example: You need a suit for an upcoming wedding that you can't get out of but you rarely ever have a need for a suit at any other time of the year. So instead of buying the $3k Armani that you think will impress all your old buddies at the wedding, you buy the Men's Warehouse version instead because after the wedding, that suit is going straight in the closet until God know when, and whenever that next time is, the damn thing probably won't even fit you by that point.
   
   
4. Buy the very best you can afford on the things that you use every day. Example: You're in the market for a new monitor for your computer, which you use for both business and personal purposes every single day. Go for the biggest, nicest, highest resolution monitor you can find at the time. You'll never regret the purchase because you'll use it and appreciate it every day. I can't tell you how many times I have seen people blow thousands of dollars on things they rarely ever use or even look at, all while holding an old mangled cell phone with a shattered screen that they have to squint at just to read -- and only because they refuse to pay the minimal fee to break their contract and just get a modern phone that's free of problems.
   
   
5. Never buy something just because you think it will distract you from other problems in your life. Example: You buy a motorcycle thinking that it will give you time alone to yourself to get away from the wife because she drives you fucking crazy. You then discover that she gives you shit every time you want to go riding, which eventually gets old so you don't even take it out of the garage any more because you don't want to deal with the drama.
   
   
6. Live free. One of the worst feelings in life is when you come to the realization that your possessions control you, so avoid getting yourself into that situation at all costs. Every big purchase you make will in some way lock you in emotionally, financially, and physically. Sure, on a spreadsheet, you can afford that car, boat, or house with no problem. But ask yourself if you're willing to trade a significant amount of freedom in your life that you currently enjoy for the liability, ongoing costs, and time associated with owning and maintaining that possession.

 

[Ditch]

You can buy that Ferrari if it leaves you stonecold when the engine blows up for the second time in three months. However if you're a person that will vomit from migraine because your precious toy broke down , it's not worth it.