How do you stop yourself from spending money on toys? - Page 3
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Thread: How do you stop yourself from spending money on toys?

  1. #21
    Senior Member GreatLaker's Avatar
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    First of all, life is for living and money is for spending. The trick is balancing your consumption during your accumulation and spending years. A good financial plan done by a CFP helps show what you need to save and what you can spend both now and in the future.

    If you want to cut back on spending, try reading books like Millionaire Teacher or The Millionaire Next Door, or MrMoneyMustache.com. If that does not cure you of your spendthrift ways, try binge watching Gail Vaz-Oxlade shows like Till Debt Do Us Part or Money Moron. If watching her for hours does not cure your over-spending habits nothing will.

    A dollar saved (invested) today at 6% for 25 years, compounds to more than $4. So every dollar you spend now cuts your retirement spending by $4. By that measure your BMW 435 actually costs you $224k of retirement income. And that excludes gas, insurance, luxury car maintenance costs, etc.

    For a long time I never spend more than $25k on a car, and usually much less. My last vehicle was a bottom of the line Honda Civic Hatchback that I kept for 18 years. It was so cheap even the right hand mirror was an option, but it was the best car I ever owned. For my 55th birthday I got me a Lexus IS350. Not the same vehicle dynamics as your coveted 435, but a great luxury sports vehicle that I know will last a long time. My goal is to keep it at least as long as I had the Civic. It has a lot of features that are common now but were only available on luxury cars back then like key-less ignition, backup camera, zenon headlights etc. Great car that I really like, but somehow I don't get the satisfaction I thought I would, because of the cost, insurance, premium gas, plus the ever present risk that some ID10T will crash into it or door it in a parking lot. So think carefully about what else you can do with the money, how you will feel paying big gas and maintenance and repair bills, when it gets that first door dent etc. And if you lease or finance it, think about what an anchor those payments will be, or if you have some financial setback like job loss or needs of aging parents or a market crash because of things that go Trump in the night.

    Fancy watches, expensive clothes or booze, big houses don't mean much to me, but other things do and are worth spending on.

    If you have thought through all the possible drawbacks, buyer's remorse, overall cost, and it still fits within your long term financial plan... why not?

    Eschew obfuscation. Espouse elucidation

  2. #22
    Senior Member tygrus's Avatar
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    In my experience, you cant save yourself rich. You give 30% to the govt, there is only living expenses left after that.

    The way to riches is to own something that inflation takes a hold of and ride it and add value to it and take advantage of the taxation on it.

  3. #23
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    Quote Originally Posted by Earl View Post

    I have enough money in my TFSA to buy a lightly used one for cash. I could also afford to finance or lease a brand new one.

    How do you ignore that voice in your head that says things like:
    -"your life would be much better if you had this!"
    -"you could die next week, enjoy life while you can!"
    -"live for the present, the future will take care of itself"

    My question is not specific to cars but any expensive things you want but don't need.
    I have had this question to myself and my spouse. Pick what ever your item is, I apply a different thinking to the voices you hear. I have heard them on occasion and usually because spouse is saying it out aloud to me.

    -"your life would be much better if you had this!" Rephrase to how would my life be better. Then I list off the reasons, and they have to be concrete, not because it makes my happy, but I keep asking why. once I figure out the roots cause, I often no longer want it. In my spouses case, he still wants it. So then I ask is there something that would meet the want you have or a less expensive way to do it. Sometimes, he just really really wants it. Then my next filter can we afford it. We have agreed upon definition which is we must be able to pay cash for it, no financing, it cannot impact our financial security, we need to still be able to meet our other financial obligations, which include maxing rrsp, tsfa, and Resp. Then we also have another filter are there other things we would rather spend our money on. If there are other things then I have the same discussion about those items.

    -"you could die next week, enjoy life while you can!" Reframe to if I don't die tomorrow, how does this impact my enjoyment of life later.


    -"live for the present, the future will take care of itself" rephrase to live for the present as long as it doesn't hurt the future . This is about having a clear plan of our future goals, and what we what to accomplished. I know very well what I want out of life and what makes me happy. Right now, I work for my kids, and they are my present and future. I wish I would have though about that before I had kids. If I would have reigned in spending then to the things that truly bring me joy now and in the future, I would have no worries now. I look back in retro spect, and we spent on crazy luxury things, and that now, don't matter at all. If I would have take pin that money saved, I would have had enough to retire before 40 and that's with kids.

    We have balanced living for now vs the future by getting understanding of what we want our future to look like.
    Last edited by Plugging Along; 2017-02-04 at 01:39 AM.
    On a 'smart' device, please excuse autocorrect/when letters are missing.

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  5. #24
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    How to convince yourself you don't need another toy: Go ahead and buy it. In a few weeks you will be wondering why you wanted it.

    We all want things. Eventually we get a few of them. If we are smart we notice how they make us feel. Most of the time it's a big nothing once the initial thrill wears off which doesn't take long. Then you figure out you can run yourself into a heart attack or worse, chasing all the things you think will make you happy, but really won't.

    As soon as this realization sinks in the spell is broken. That doesn't mean you won't want anything, you will. It means you will be smart enough to think it over and decide if it is really something you want, bad enough to commit to, or if it is just a whim.

    Part of the process of growing up and learning wisdom.

    Of course you could always work yourself half to death getting all the toys, then wise up. That way you would have the toys and the wisdom too. Just kidding.

  6. #25
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    Remember that coffins don't have pockets.

    A lifetime of experiences and good memories and $1 in the bank, beats $5 million in the bank and a lifetime of regret. I'm turning 40 in 2 years, and I'm looking for something to splurge on a little. I'm leaning towards a big truck or SUV. Or the more likely scenario of an older truck + a much nicer vacation for the family.

    I work hard for my money, and I'm not a money moron. My house is paid for, my investment portfolio is big and growing, good pension, my daughter at the age of 5 has more RESP money to her name than my entire net worth when I started university. I certainly could afford to indulge a little, but I'll still be looking to maximize the value of the splurging money.


    Coming from another car guy. Skip the BMW. Actually skip anything German altogether. Expensive to buy, and even more expensive to repair and maintain. Add to that their woeful reliability record. A Lexus or Acura is a much smarter choice of indulgence. "German Engineering" has been marketed to us as the pinnacle of reliability and longevity, and it's TOTAL BS. German made tools, like Knipex pliers, are simply outstanding. German cars are not.

  7. #26
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    The other answer is to spend the time researching the toy you want, buy used, and only buy it when you can pay cash.

    If you are really a car guy then spending the money on a nice car may be worth it. And if you aren't a car guy you won't understand. And learn to DIY.
    I have a 2002 Porsche 911 and an older BMW 335i as my winter car. Both were paid for and well past the steep depreciation curve. The ownership cost is likely less than that of a new minivan. You just have to settle for an older car and dedicate more time to learning and maintaining it.

  8. #27
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    Quote Originally Posted by STech View Post
    Remember that coffins don't have pockets.

    Coming from another car guy. Skip the BMW. Actually skip anything German altogether. Expensive to buy, and even more expensive to repair and maintain. Add to that their woeful reliability record. A Lexus or Acura is a much smarter choice of indulgence. "German Engineering" has been marketed to us as the pinnacle of reliability and longevity, and it's TOTAL BS. German made tools, like Knipex pliers, are simply outstanding. German cars are not.
    Have you owned a german car? I agree that if your goal is reliability and longevity than Japanese would be a better bet. But if you are looking for fun-to-drive than the answer isn't nearly as simple. I've had both and still own 2 German cars with almost no issues at all. BMW reliability has improved dramatically since the later versions of the e9x. Sure you may have to replace the fuel pump and turbos more often (etc). But it is definitely worth it to me.

  9. #28
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    Quote Originally Posted by KevinWaterloo View Post
    Have you owned a german car? I agree that if your goal is reliability and longevity than Japanese would be a better bet. But if you are looking for fun-to-drive than the answer isn't nearly as simple. I've had both and still own 2 German cars with almost no issues at all. BMW reliability has improved dramatically since the later versions of the e9x. Sure you may have to replace the fuel pump and turbos more often (etc). But it is definitely worth it to me.

    Thank you for proving my point.

    And yes I have, and never will again. Fun to drive? Hell yes. Would I rent one? Hell yes. Would I ever own another one? Hell no.

  10. #29
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    Quote Originally Posted by STech View Post
    Coming from another car guy. Skip the BMW. Actually skip anything German altogether. Expensive to buy, and even more expensive to repair and maintain. Add to that their woeful reliability record. A Lexus or Acura is a much smarter choice of indulgence. "German Engineering" has been marketed to us as the pinnacle of reliability and longevity, and it's TOTAL BS. German made tools, like Knipex pliers, are simply outstanding. German cars are not.
    Speaking from PERSONAL experience I have owned 5 BMW's and Mercedes and NONE of them have been problematic. In fact, one service visit per year has been the norm (15,000 to 20,000 km between routine service is a great advantage if you hate visiting the dealer every 5,000 - 8,000 like most other brands). I had one BMW when I used to live out in the country that got flogged HARD every day commuting 150 km of country roads and through countless snowstorms, road trips without ever so much as a rattle. My current vehicle is a 9 month old $90,000 Mercedes loaded with technology (distronic radar cruise with steering assist is my favourite) and I just took it on a 5,000 km road trip and it was flawless, amazingly comfortable even after a couple of 13 hour days on the road. I love driving a nice car and I can afford it. German vehicles also fit my 6'3" frame very well (the only vehicles that have MORE legroom than I need). I do tend to flip them at 4 years though, because I like newer models and my total annual vehicle expenditure is a very small percentage of my income and miniscule percentage of my net worth.

    OP my opinion is that unless you have all your financial ducks in a row (RRSP, TFSA, RESP all maxed, mortgage paid off, lots of extra cash in your non-reg account and safety nets like HISA topped up and income in the HUNDREDS of thousands) you should buy a Honda Accord (which is honestly a great vehicle) or similar price range Japanese or Korean car. Luxury rides are being driven as status symbols by too many people that can't truly afford them (just like too many Canadians buying houses they can barely afford). How about something equivalent to <2% of your net worth as a guide? Taking money out of a TFSA to buy a car seems ridiculous to me.
    XIC, VTI, XEF, XSB/VAB/GIC LADDER (+ HISA for cash)

  11. #30
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    Quote Originally Posted by Ihatetaxes View Post
    I do tend to flip them at 4 years though, because I like newer models.

    Even the magnificently unreliable Chryslers will give you 4 or 5 years of OK reliability, until the they start falling apart pretty badly. Just because you PERSONALLY experienced good reliability from a brand new car every 4 years, doesn't mean publications like Consumer's Reports is wrong. A 20 year old Honda or Toyota will still be on the road, with a higher resale value than a German car that's no longer worth the cost of repairing.

    I love DIY everything myself, and tinkering with cars and electronics is a big hobby of mine. Maintenance and repair costs of pretty much anything is minor to me. I even get parts at dealership costs. And even with that, when I'm looking for a toy to have fun with, I'd rather have something that's reliable. Harley Davidson guys are notoriously protective of their brand loyalty, yet they'll easily spend double the time and double the money of a Honda or Kawasaki rider and still tell you their Harleys are very reliable.


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