Despite expectations and logic, 2020 turned out to be a phenomenal year in terms of financial returns. In fact, the entire decade was fairly good especially compared to the prior decade.
Like many of you, I achieved financial independence in large part through a frugal lifestyle and a firm grasp of math. If I invest X amount over Y years, then I can retire by age Z. In 2013, I thought I had enough to retire especially if I supplemented my income with a side hustle. That side hustle was real estate investing which has produced amazing returns.
While I don't expect the good times to continue forever, I also want to enjoy some of these gains. Once again, I've done the math. At the current rate that I spend and projected years that I'll be alive (I'm close to 50), I just won't be able to spend it all. Rather than leave it all to the kids or charity, I'd like to enjoy some of it.
It's really difficult for me to change my frugal mindset, so I'm looking for ideas to splurge and spend big. I'm interested in how you currently splurge or plan to splurge down the road. Personally, I don't care for fancy food or electronics. I love to travel but I don't necessarily need luxury. I'm always interested in unique travel experiences either in luxury or roughing it.
Tp get the ball rolling, I'll mention my one planned splurge for 2021 (hopefully). I've ordered a 2021 Corvette C8 Hardtop Convertible. If the dealer comes through, I'll get it late in 2021 for $80K + tax + docs. I'll probably spend $100K once I'm done with the accessories. This is a completely impractical purchase but what else am I going to do with the money? it's not Ferrari or Aston Martin money. It's completely impractical because:
1. I have nowhere to drive to. I no longer commute anywhere. I don't have any fancy places or events to attend. This was true pre-Covid
2. The only place I went consistently pre-Covd was taking my two kids to school which I cannot do in this two seater.
3. I already own 3 cars; I don't plan on selling any.
4. For the number of days/miles I will drive, it would be far less costly to rent it on Turo.
I was going to suggest a car, but you've got that covered. Great choice!
My wife and I are in our late 40s and approaching financial independence. We have had a traditional path through staying employed and saving diligently. My wife missed a couple of years working, since our son had many medical issues when he was born (6 months in the NICU, long story). No real side hustles, although I've started blogging as a hobby for now.
We max out our 401ks, contribute to our Roths through the back door, and invest in an after tax brokerage account and Fundrise. We aren't as thrifty as we could be, and enjoy driving new cars (Audi Q7 for her and a BMW m340xi for me). We also splurge on family vacations with our family, renting a home on Cape Cod MA for a week on or near the ocean. We've also taken family vacations to Disney and would like to go to the Caribbean once things get a little more normal. Maybe even some time with just the wife and I now that our kids are older! We put a lot on hold when our kids were young and due to the health complications.
I do like some electronics and will splurge on a new OLED tv soon too, but also planning on more time in Retirement for hobbies like learning French, guitar, mountain biking, trying to workout, etc. These activities don't require too much money, but could definitely spend too much on a mountain bike.
Do you get the cable channel AWE - "A Wealth of Entertainment"?
Started watching a few shows there, and has resulted in plenty of ideas for spending:
- Dream Cruises - luxury european cruises
- Boys Toys - fancy cars, etc
give it a try, haha