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You Won! Now to spend it...

Discussion in 'Off-Topic' started by Birdjaguar, May 15, 2019.

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If you won $5,000, what would you do with it?

  1. Spend on consumables (food, entertainment, etc)

    2.1%
  2. Spend on hard goods (cars, appliances, home repairs, furniture, etc,)

    10.4%
  3. Spend on electronics

    2.1%
  4. Spend on travel

    12.5%
  5. Spend on family/children

    6.3%
  6. Save

    29.2%
  7. pay off debt (CC, education, loans, etc.)

    14.6%
  8. Invest

    10.4%
  9. Give to charity/church

    2.1%
  10. Save and spend

    2.1%
  11. Spend it all in different categories

    6.3%
  12. Other (please explain)

    2.1%
  1. onejayhawk

    onejayhawk Afflicted with reason

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    For such a small amount, I would save 90% and do something recreational with 10%. It isn't enough to impact my lifestyle but it will have a bigger impact on my retirement.

    J
     
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  2. Manfred Belheim

    Manfred Belheim Warlord

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    What's virtuous about saving money for yourself?
     
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  3. AmazonQueen

    AmazonQueen Virago

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    Not sure but people have spent my whole life telling me I should do it more :lol:
     
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  4. Manfred Belheim

    Manfred Belheim Warlord

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    I would definitely save it (or pay off debt) and I don't really consider it virtuous. I just don't have particularly expensive tastes and am too worried about not having money in the future when I might need it. Maybe "mindful" would be a better word than "worried" there.
     
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  5. caketastydelish

    caketastydelish 49ers 2019

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    hookers and cocaine
     
  6. Zkribbler

    Zkribbler Warlord

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    The only money that will be waiting for you as an old man is the money you send down the road as a young man.
     
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  7. AmazonQueen

    AmazonQueen Virago

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    Happily between the state pension and the civil service pension I contributed to my old age without having to make the conscious decision which is good because young me always had other things to spend her money on, not all of them irresponsible.
     
  8. Hrothbern

    Hrothbern Warlord

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    For me the same. The period with my kids growing up the most expensive one.
    Our state pension system was basically structured in 1957, in the crucial period of a "holy alliance" here between the (at that moment) socialistic Social Democratics and the (at that moment) still social samaritan Christian Democrats, the period that our welfare system was structured and build up. And currently it is still not torn down by international competitive pressure of free market neoliberals :).


    The nanny welfare state principle to protect people against themselves. The Calvinistic principle that everybody had to work that could work. The christian-communist principle that people that did work and people that could not work anymore from old age were entitled the same disposable income.

    (and do mind that paying people per week was a protection (of housekeeping money) as well, with often the wifes waiting up their husbands at the factory gate when they were paid out to secure that they got at least their needed housekeeping part of the week wage and not a too big chunk was converted the same day in hard liquor by their husband)

    What we have basically here is that pensioneers (67+ year old) have state paid the same disposable income as the working age people (16-67) that work at minimum wage (at gross income level state pension is 70% of minimum wage).
    A whole system of house rent allowances (rural lower rent than urban), differing progressive tax systems, care allowances, allowances for children, evening that all out to a "good enough" 1:1 disposable income and prosperity. The size of the special allowances such that international comparisons at gross or net after tax are meaningless.

    On average Dutch people have from compulsory paying into their pension funds when working for an employer (state or company) an additional pension that nets disposable (less allowances) at an average of 50% of the state pension.
    Many people use a part of that additional personal pension fund to retire some years earlier than at 67.

    Besides saving up a petty buffer for sudden expenditures like a broke washing machine, or that special holiday to the other side of the world, there is no real need-necessity to save up money on an individual base.
    I think many still do it when possible, but more as a "feelgood" security and a "care feeling" for their kids.
     
    Last edited: May 21, 2019
  9. Mise

    Mise isle of lucy

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    That's kind of the problem for me, it's too much to spend on a whim but too little to buy anything we truly need. It would always go towards something else, along with the rest of my savings. Put another way, if I wanted to spend $5,000 on a trip to Japan or something, I could do that now. It wouldn't make much difference to my savings goals or my life plans. It would just mean that the mortgage on my next house would be $10 a month higher or something equally unnoticeable like that.

    5k isn't enough to be life changing, but at the same time it still feels like way too much for me to be frivolous with. At the margins it's not a big deal to throw away - as I say it wouldn't make an impact on my life if I had an extra $5k, and also wouldn't make an impact if I spent an extra $5k. But the rule of spending is important, otherwise I'd end up spending $5k after $5k after $5k on frivolous things with no end in sight, and I'd never save a penny.

    So, yeah, in theory, an extra $5k that someone gave to me could be spent frivolously with no negative impact on my life, but breaking the rule that I shouldn't fritter $5,000 on frivolous things would have a negative impact on my life. The rules of spending that I follow are worth more than whatever I could buy with $5,000.
     
  10. Ferocitus

    Ferocitus Warlord

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    I tend to look to the classics for inspiration...
    Weed will get you through times of no cash better than cash gets you through times of no weed.
     
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  11. Manfred Belheim

    Manfred Belheim Warlord

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    Yeah that makes it sensible or practical, not virtuous.
     
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  12. AdamCrock

    AdamCrock Master of Darkness

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    I know a joke about winning a sum of money :

    A guy drives on a highway with his family and suddenly cops stop him than a guy with cameras aproaches him and says:
    - Congratulations You're a 100 000 user of our road. As a road building company we would like to award You a check for a 100 000$ what will You spend it on ?
    Man thinks for a moment and says:
    - Well I think I will finally make a driver's license
    Scared wife suddenly interupts and says:
    - Don't listen to him he always talk stupid things when he's drunk !
    In that moment grandpa wakes up from his nap, he sees a policeman and says:
    - I told You wouldn't go far with a stolen car !

    :D

    I would just pay of my debts and invest the rest ;)
     
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  13. Birdjaguar

    Birdjaguar Entangled Retired Moderator Supporter

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    You raise an interesting perspective. At what point does $5,000 lose value as a significant amount of money? Certainly not seeing such an amount as meaningful or particularly impactful would imply that one is in an economically secure place. A good thing. For others, it would be a big chunk of money that is difficult to attain and if they had it, it would enable them to do things previously very difficult. So at what dollar level would a winning cause you pause? $7,500? $10,000? $15,000? Something more?
     
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  14. haroon

    haroon Chieftain

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    Maybe at $15000 I want to relax a bit. I will buy new phone for my wife ($200), and a smart tv ($400) for our family, move to bigger house ($1000) so we can buy a sofa set with a carpet ($1500). That will be $3100, we will keep 900 to relax a bit, and the rest I will save it to buy property.
     
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  15. Mise

    Mise isle of lucy

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    So for me it's not so much that it isn't a significant sum of money, rather that it is a significant sum, but still not enough to be life-changing. I'll take your question to be about what would be the "next level" above $5,000.

    For me, something like $50,000 would mean that at least one of our hypothetical future children's university education is taken care of, which means we might be able to afford a nanny or a cleaner or something. Not having to save for future expenses means that we have more to spend now on ongoing costs. It sort of adds to our income, by removing some of the necessity to save. That seems pretty meaningful and life-changing.

    I would have to think harder about where the exact line is, but orders of magnitude-wise, it would be 5 digits rather than 4.

    I think the other problem that I personally have is that it's actually quite difficult to find something "meaningful" to spend money on at all, let alone something that I don't already buy or have a plan to buy.

    Having said that, the real life-changing sum would be where I feel able to change the rules on how I spend and how I save. I'm not sure what amount that would be either. Maybe it isn't a sum of money, but a fundamental shift in priorities, like having children -- having someone else to spend money on that seems more important than a new gaming laptop or whatever. This is probably something I'll think about a lot over the next few years. Thought-provoking question, BJ!
     
  16. AmazonQueen

    AmazonQueen Virago

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    For me it would be a significant sum, not life-changing, but enough to give me the opportunity to do something I wouldn't be able to do otherwise. To save it for retirement say would be a drop in the ocean. Using it to travel somewhere I'm otherwise unlikely to be able to afford to visit would have a bigger impact on my life.
     
  17. hobbsyoyo

    hobbsyoyo Warlord

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    I'm with Mise, $50k would be life changing in that it would free me from roughly $1k/mo student loan payments. I would still have another $1k in student loans per month but fully half of my debt would be erased at $50k and would enable myself and my wife a lot more freedom in job selection. Right now we're both struggling in that there are jobs we would take except for the pay - and even then the pay is still good but just not enough to help us stay on top of loans.
     
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  18. rah

    rah Warlord Supporter

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    It would have to be more. For me 5K is sock drawer money.
     
  19. onejayhawk

    onejayhawk Afflicted with reason

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    Sensible and practical are virtues.

    That's what makes it interesting. It's enough to require some thought for almost everyone, but nothing life altering.

    J
     
  20. haroon

    haroon Chieftain

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    5k is a lot of money, but it is indeed not a life changing and can gone easily if I don't plan well.

    I also curious how is the reaction of other poster if BJ increased the pot on the table lol
     
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