Monday, January 14, 2019

Enough Money

"If only I made $80,000 a year!" one of my carpool colleagues once told me. "I'd never care what anything costs." At the time, we were each earning around $50,000 annually so it seemed like an $80,000 salary would put someone on Easy Street.

I didn't agree. I don't think I'll ever get to a point where I don't consider how much things cost. No matter how many millions I have socked away. Why would I pay more than I have to for anything?

Pay more for better quality, certainly, or perhaps the convenience of obtaining something quicker. Who doesn't like to be pampered, especially if you can afford it? But even billionaires look for deals and freebies. Wealthy people don't pay more than they have to; that's how they stay wealthy.

And conversely, that's how lottery winners and others who suddenly come into a fortune end up losing it all. They indulge every fantasy, and they stop caring how much things cost.

Big purchases bring along big expenditures. Beyond the $200,000 price tag for that new sports car are increased costs for insurance and maintenance. And you'll have to feed it premium gasoline instead of regular. Multiple luxury homes incur multiple tax bills, and they have to be furnished and maintained. You need to hire people to take care of them. And the more square footage, the higher the utility bills.

That's why wealthy families who inherit castles and historic mansions turn them over to foundations and open them to the public, for an entrance fee. The upkeep costs would otherwise drain their estates.

Money can make you comfortable. It can make life easier. It's possible to reach a point where your money earns enough to fund your lifestyle so that you don't have to work for a paycheck. But money is still a finite resource.

My frugal attitude came from being raised by parents who lived through the Great Depression. They remembered what it was like to struggle to make ends meet, and they taught me never to waste anything—especially money.

And it makes sense. Unless a higher price tag adds value, why pay more than you have to for anything?

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