It appears that you're new here. If you like this content, subscribe to my feed via RSS or Email and you can keep up with all the new posts.If you aren't sure how to use an RSS feed, read this post.
Everyone has some guilty pleasures, good chocolate, a fine wine, new shoes, or a little vacation trip here and there, but for many it appears that our day to day spending decisions are tempered by a deep seated feeling that we would be better off in the long run without those little indulgences. We tend to think, “I’d really shouldn’t buy this,” or “Could I invest this money and have $10,000 more at retirement?” and we have that nagging sense that we should choose needs over wants, work over leisure, and saving money over impulsively spending it.
Recent research seems to indicate that forgoing little indulgences today can cause strong resentments later and, according to researchers in a recent Harvard Business Review article, near-term regrets about self-indulgence dramatically fade over time. Conversely, those who dutifully work, build a career, pinch, and save seem to experience a growing sense of “having missed out” on life. Guilt fades but regret intensifies.
Perhaps that’s why Consumer Credit Counseling Services insists that you have a budget category called “fun” in addition to one for savings, debt, food, utilities, mortgage, etc.
According to the article, people who consistently resist any self-indulgences suffer from a financial farsightedness or hyperopia. They have incredible self control and an intense focus on acting responsibly. Indulgences are wasteful, irresponsible, and in extreme cases, immoral. You and I have read about these people, commonly called ‘misers” in our society. You know, the little old lady who lived in squalor, yet left her church $50 million in her will. Or the highly “successful” business person who brags about putting in 70 hour work weeks, but has a family life in shambles.
What researchers uncovered was that, if we think we will regret our actions in the short term, we will be more virtuous today, but if we think regret won’t affect us until the distant future, we will be more extravagant today.
So what does this all mean? I think it means we need to find a balance between frugality and our enjoyment of life today. Self control is highly important, but if you have an extra $50,000 for retirement because you never took your children on a nice family vacation, is it really worth it? If you build a company into a multi-billion dollar corporation, but your wife and children hate you for it, what have you gained?
I think we should always remember the words of the late Massachusetts senator, Paul Tsongas: “Nobody on their deathbed ever said, ‘I wish I had spent more time at the office.’”
I believe we should be highly frugal with purchases of stuff, but be willing to indulge ourselves and our families with experiences. I’ll always have those memories, but things fade. Things break. Things lose value. But memories and experiences with those you love will only increase in value.
I’m not saying to lose your self control and revert back to old bad habits of spending and debt. No. I’m saying that if you’re experiencing that nagging sense that you’re missing out on enjoying life, you might need to loosen up a little and allow yourself a few simple pleasures. Save for the experiences and allow yourself to enjoy them. You won’t regret it.
Just remember: “No Fun” compounded over 30 years at 10 percent equals “Regret.”
Technorati Tags: frugality, regret, frugal, money, simple pleasures, family, budget, finance, introspection, heartache
| |
PF Buzz It!
|
Tip it!
|
Stumble It!
|
Print This Page for Future Reference
Leave your comment here:
Get Updates to The Wisdom Journal via RSS
Or, Get Updates by Email
Can't find what you're looking for? Try searching here:
My StumbleUpon Page
I've been using TaxCut Software from H&R Block for the past 12 years and I've been extremely happy with it. At various times, I've had a pretty complicated return and TaxCut has always performed perfectly.
Online Phone Service
I have been VERY pleased with Skype . The quality of the call as well as the rate is outstanding. Give it a try! You won't regret it.
Great Coffee
My family and I have used Gevalia for years. They have fantastic coffees and if you sign up, you can get a really, really nice coffeemaker. I have a coffeemaker, two carafes, and a coffee storage container from them. Highly recommended!
The Wisdom Journal is for entertainment purposes only. Please consult with a competent professional before acting on any advice found on this or any other website.
© 2007 The Wisdom Journal, - Daily Blog Tips Themes
My first thought at this idea was panic–”That’s me! I’m doomed to a life of regret!” But considering my husband and I recently ate our way through Seattle and indulged quite a bit, I think we’re doing pretty good with creating balance.
[Reply]
Ron 's reply:
August 13th, 2008
That’s funny! We ate our way through the World Showcase in Epcot. My wife didn’t make it. The bratwurst in Germany got her.
[Reply]
[...] Frugal But Regret It? Ron asks the question all frugalists struggle with at some point. After many months, or years, or frugal living sometimes we grow to resent that lifestyle. That’s why I think it is so important to occasionally stop and smell the roses. [...]
[...] Frugal but regret it? At The Wisdom Journal [...]
[Reply]
Ron 's reply:
August 15th, 2008
Enjoying a few of the simple things along the way helps keep you from going overboard on some of the larger things.
[Reply]
[Reply]
My family is just starting our journey of frugalness and we already feel guilty about “over doing it” at the county fair.
Did we really need that smoothie and cotton candy? Of course not…just like we didn’t need the snow cone or pony ride either…but come on, its the FAIR!
[Reply]
[...] The Wisdom Journal’s “Frugal but Regret It?” is a good reminder that there is a balance when it comes to living frugally. [...]
[...] Frugal but Regret It? [...]
[...] The Wisdom Journal: Frugal But Regret It? [...]
[Reply]
I tend to justify my taste for expensive coffee beans and top-quality meats with exactly this argument: small indulgences that you can afford make it possible for you to enjoy life and should not be ignored. On the other hand, buy enough steaks, enough salmon, enough scallops, and enough espresso roast, and before you know it you’ve got a $500-a-month grocery tab…for one person.
Then there were all the experiences the ex- and I enjoyed: $3500 for the trip to Hawaii, god knows how much for the junket to New Zealand, the business trips to the Greenbriar that the firm didn’t cover, the stays at the Mark Hopkins when we were in the City…good grief! Yeah, we each have lots of memories. Our separate memories: the $750,000 in debt we racked up didn’t do the marriage any good.
[Reply]
[...] the importance of tracking expenses. I also really enjoyed The Wisdom Journals consideration of whether frugal people regret being frugal and Amateur Asset Allocator’s explanation of why the dollar is falling. [...]
[...] Truth About Your Credit Score (from an expert)Carnival Time! | artofthecoupon.com (0 comments.) on Frugal but Regret It?krish (0 comments.) on Lessons from a FarmerRon on Lessons from a FarmerkrisH (0 comments.) on [...]
[...] The Wisdom Journal: Frugal But Regret It? [...]