Spending It

jim8888

Quite an interesting podcast from The Mad Fientist about the challenges of going from decades of saving and investing to spending the pot.
https://www.madfientist.com/how-to-spend-money/
While there aren't any startling new ideas, this is an area that does warrant discussion.
I wondered if anyone has any practical tips about how to transition from a saving mentality to a spending one? 

Secret2ndAccount

I would suggest upgrading:
Yes to a slightly nicer seat on the plane; and often a convertible waiting when I land.
I've also taken Martin's supermarket challenge in reverse. For each item on my shopping list, I've tried buying the next most expensive version - switch from own brand to Extra Special  and see if it tastes better.
I've also taken to buying spares. If I like a pair of trainers or a shirt, I will buy another identical one. In two years, when the first ones are worn out, there's no way the same product will still be avaialble.

Am still struggling to pay 5 quid for a pint of Ben & Jerry's

artyboy

....ALWAYS to a nicer seat on the plane. The sort that goes flat when you are traveling long haul.

We each have our red lines. That's mine!

Ibrahim5

Whenever I have had free business class upgrades I have felt it would be a pity to sleep through the experience so I have purposely stayed awake. Quite happy to sleep in economy seats. I would pay a few pounds extra for business class but not the many multiples that are normally quoted. That would just be a waste.

MallyGirl

artyboy said:

....ALWAYS to a nicer seat on the plane. The sort that goes flat when you are traveling long haul.

We each have our red lines. That's mine!

Generally I am with you but occasionally the uplift is just ridiculous. When we go back to Canada west coast or revisit New Zealand it will definitely be in a nicer seat but our safari next year in Tanzania has prioritised the land based stuff at the expense of less nice flying. I am tall and I just can't sleep with the seat in front of me pressing in to my knees.

michaels

artyboy said:

....ALWAYS to a nicer seat on the plane. The sort that goes flat when you are traveling long haul.

We each have our red lines. That's mine!

So I am fine in economy in the day time for up to about 8-10 hours but overnight I can't hack it.  Last trip to California we did LAX to Newark one day and Newark to LHR the second, both about 7 hour flights with an evening in NYC as a bonus, 2 x 7 hours in economy on consecutive day beats 1 x 13 hours overnight even in J class.  And of course unlike while working the extra day travelling is part of the experience not a day of leave wasted.

Doing CPT next year, there are no direct day flights, may do a night in AMS on the way out to get that day flight or alternatively may do J there, economy back as that is a day flight.

Smudgeismydog

My approach has been to pay myself a monthly allowance. I effectively give myself ‘permission’ to spend it, as I’ll have another payment the following month. I knew if I just had a capital pot, then my years of saving would psychologically make it difficult for me to access. 

I have even kept to my former pay date.

Hal17

Smudgeismydog said:

My approach has been to pay myself a monthly allowance. I effectively give myself ‘permission’ to spend it, as I’ll have another payment the following month. I knew if I just had a capital pot, then my years of saving would psychologically make it difficult for me to access. 

I have even kept to my former pay date.

Ha ha I like that idea. 

jim8888

I'd agree with Business Class flights on long haul and upgrading on car hire. Spending money on holiday accommodation I've also found to be worthwhile (usually). I like the idea of upgrading on food too, will have to try that, and I've done the "spare pair" spend which I'm vowing now to repeat on a great pair of comfy slippers I bought at Sketchers. I'm also thinking about replacing the car with something we want instead of something sensible. Overall I do think that it's worth paying for quality brands, but you have to do your research. Things I still can't face spending on are: Kindle books at over a tenner; cups of coffee at over £4; burger and chips in a pub at over £20; 12 golf balls at £40 plus....it's the small items that seem to bug me when it comes to spending cash!

zagfles

Smudgeismydog said:

My approach has been to pay myself a monthly allowance. I effectively give myself ‘permission’ to spend it, as I’ll have another payment the following month. I knew if I just had a capital pot, then my years of saving would psychologically make it difficult for me to access. 

I have even kept to my former pay date.

Maybe a good argument to use an index linked annuity rather than drawdown, if you drawdown you might always be thinking "what if there's a crash/long term bear market" and feel reluctant to spend, whereas with an annuity you know you'll be getting a monthly income. 

zagfles

michaels said:

artyboy said:

....ALWAYS to a nicer seat on the plane. The sort that goes flat when you are traveling long haul.

We each have our red lines. That's mine!

So I am fine in economy in the day time for up to about 8-10 hours but overnight I can't hack it.  Last trip to California we did LAX to Newark one day and Newark to LHR the second, both about 7 hour flights with an evening in NYC as a bonus, 2 x 7 hours in economy on consecutive day beats 1 x 13 hours overnight even in J class.  And of course unlike while working the extra day travelling is part of the experience not a day of leave wasted.

Doing CPT next year, there are no direct day flights, may do a night in AMS on the way out to get that day flight or alternatively may do J there, economy back as that is a day flight.

Yup, can even get to Aus/NZ without having to sleep on the plane, written about it loads of times here. To me flying business class would almost be giving up, if I felt I couldn't hack economy or even enjoy it then I've lost something I used to love. I almost think of BC as disabled class, most people I know who travel BC do so because of physical or mental conditions which mean they can't cope with economy. 

It was a bit like going from hostels to hotels, by far the best holidays of my life were backpacking on the cheap, staying in often grotty hostels, but it was so much fun, the people you meet, the nights in the hostel bar, everyone was so friendly and so much fun. Then started travelling on business and staying in 4/5* hotels, SO boring, in the bar everyone kept themselves to themselves, reading a paper or discussing serious issues, such a lack of smiles and laughter compared to hostel bars. 

On the more general point, the idea of setting a spending target is silly IMO. Why feel obliged to spend a certain amount? The hobbies I enjoy most are very cheap, I can play badminton or bridge for the cost of a coffee, or I could go to the opera, theater or concert for 10 or 20 times that, I know what enjoy more. Spending more doesn't necessarily mean more enjoyment.