Delayed gratification

[pezdispenser]

I know there are a lot of opinions on this, and I want to hear them.

What is the optimal length of time that a typical pharmacist should delay gratification? For example:

1. Never! Borrow the max and buy everything you want now!

2. Until you get a job. Then you're ballin'!

3. After you've paid off your student loans.

4. Paid off all debt including mortgage.

5. Until you've hit your retirement 'number' or F.I.R.E.

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[ldiot]

Depends on your priorities. Most people are probably somewhere around 2-3 on that scale. I'd probably consider myself to agree with #3 but I'd still be saving and investing because eventually your investment earnings will become just as significant as your salary. Have to start investing now or that day will never come.

 

[lord999]

Finance can be driven by a sense of regret, like the smile you see when a diabetic is remembering the first time they had chocolate. My answer is more until you are not satificing (satisfy + sacrificing) yourself hurtfully. It's kind of like eating "light" sour cream. If you actually use the same amount as you would regular, then it works. However, most RDH research points to people using even more, so it's kind of not productive.

For me, that was Choice 4, and that was done after the first three years in practice (inclusive of graduate school). It helped a lot that I was a student (meaning no one had any social expectations of me living in a hovel, unlike the stronger egos on this board, peer pressure is effective on me to not be too cheap but being a student gave me a social pass from being anything else).

Just like dieting, good money management only works if it's a lifestyle change and not a temporary matter.

Don't be profligate and don't save to pennywise/poundfoolish amounts.

I'm on the saving side, but it's more from the fact that my material wants are fully met (good food, good housing in a safe neighborhood, fantastic job that I do enjoy), my artistic ones require electricity and tolerance, and there's nothing productive that I want to do with the money (which means it goes into savings/investments).

I do have enough to retire early if you read the other posts, but have a job where I don't want to as it's extremely entertaining (and power to me is the thing that is real). As for taking debt, I'm firmly on the side of it is a necessity and not a want. You do it if you really need to (school in this age (I did not as it was cheap in my era), mortgage (not for the tax advantage but for the rent advantage), car possibly), but preferably work without it.

I'm interested in:
1. Old Timer
2. BMBiology
3. Momus
4. It's Z
5. zelman

as they have interesting and different perspectives at different career points in the business.

 

[waiter]

delaying as much as possible so I can escape retail sooner

 

[Michael_Scott]

3 is always the best financial advice. especially in today's job market

 

[Deja]

depends, I would never spent wastefully on a new car or an apt that's too expensive

but asking me to spend 5k+ to travel to other countries? count me in every single time! I don't want to wait till i'm 60 to travel

 

[Old Timer]

This is a complicated question. It's actually more philosophical than financial. There is so much that goes into this. All of your life experiences play into this. My father died when I was 13, he was 39. It makes me somewhat less long term than some other people. I don't spend every penny, but I don't eat raman noodles or live like a student or a 70's hippie. When I was growing up, we were poor. I didn't know we were poor, but we were. One car (used). Vacation was a couple of days at a motel in Atlantic City. My first plane flight wasn't until I was 21.

Debt is a tool in our current financial world. Use it wisely and you will be successful. Don't and you will really suffer. Look at student loans. Let's say you borrowed 200k. That 200k got you a job making 100k per year for 30 years. That's 3 million dollars. Wise investment? That's up to you. better to borrow 200K and put it in the S&P 5000? Real-Estate? Some business venture? That's for you to decide.

Everyone decides what is important to them. I have newer cars now (2013 Cruze for me and 2013 Equinox for my wife). I have an 850 Fico score and I make over 170K a year with bonuses. I could have any car I want. I would never buy a Lexus or a Porsche or a Mercedes. It's not my thing. I do however have this:

That's $1,700.00 of wine. I have had the pleasure of drinking some of the finest wines in the world. There is nothing like a really good dinner along with great bottle of wine. That's me.......

To be happy, you have to always keep in mind this question. It was posed by a scholar thousands of years ago and it remains true today

Who is rich? One who is happy with what one has, as it is said, 'When you eat what your hands have provided, you shall be happy and good will be yours.

Delaying gratification is one of the most important things you learn in this life if you want to be happy. Just don't delay it forever, shrouds have no pockets.......

 

[Michael_Scott]

This is a complicated question. It's actually more philosophical than financial. There is so much that goes into this. All of your life experiences play into this. My father died when I was 13, he was 39. It makes me somewhat less long term than some other people. I don't spend every penny, but I don't eat raman noodles or live like a student or a 70's hippie. When I was growing up, we were poor. I didn't know we were poor, but we were. One car (used). Vacation was a couple of days at a motel in Atlantic City. My first plane flight wasn't until I was 21.

Debt is a tool in our current financial world. Use it wisely and you will be successful. Don't and you will really suffer. Look at student loans. Let's say you borrowed 200k. That 200k got you a job making 100k per year for 30 years. That's 3 million dollars. Wise investment? That's up to you. better to borrow 200K and put it in the S&P 5000? Real-Estate? Some business venture? That's for you to decide.

Everyone decides what is important to them. I have newer cars now (2013 Cruze for me and 2013 Equinox for my wife). I have an 850 Fico score and I make over 170K a year with bonuses. I could have any car I want. I would never buy a Lexus or a Porsche or a Mercedes. It's not my thing. I do however have this:

That's $1,700.00 of wine. I have had the pleasure of drinking some of the finest wines in the world. There is nothing like a really good dinner along with great bottle of wine. That's me.......

To be happy, you have to always keep in mind this question. It was posed by a scholar thousands of years ago and it remains true today

Who is rich? One who is happy with what one has, as it is said, 'When you eat what your hands have provided, you shall be happy and good will be yours.

Delaying gratification is one of the most important things you learn in this life if you want to be happy. Just don't delay it forever, shrouds have no pockets.......

200k for a 100k job is not good sense to begin with...100k loan for 100k job is better...I pay it off within 3-4 years and then start investing. I make more that way then just going with my initial 100k since now I have something to fall back to even if my investments go awry. good advice though.

 

[PumpkinSmasher]

This is a complicated question. It's actually more philosophical than financial. There is so much that goes into this. All of your life experiences play into this. My father died when I was 13, he was 39. It makes me somewhat less long term than some other people. I don't spend every penny, but I don't eat raman noodles or live like a student or a 70's hippie. When I was growing up, we were poor. I didn't know we were poor, but we were. One car (used). Vacation was a couple of days at a motel in Atlantic City. My first plane flight wasn't until I was 21.

Debt is a tool in our current financial world. Use it wisely and you will be successful. Don't and you will really suffer. Look at student loans. Let's say you borrowed 200k. That 200k got you a job making 100k per year for 30 years. That's 3 million dollars. Wise investment? That's up to you. better to borrow 200K and put it in the S&P 5000? Real-Estate? Some business venture? That's for you to decide.

Everyone decides what is important to them. I have newer cars now (2013 Cruze for me and 2013 Equinox for my wife). I have an 850 Fico score and I make over 170K a year with bonuses. I could have any car I want. I would never buy a Lexus or a Porsche or a Mercedes. It's not my thing. I do however have this:

That's $1,700.00 of wine. I have had the pleasure of drinking some of the finest wines in the world. There is nothing like a really good dinner along with great bottle of wine. That's me.......

To be happy, you have to always keep in mind this question. It was posed by a scholar thousands of years ago and it remains true today

Who is rich? One who is happy with what one has, as it is said, 'When you eat what your hands have provided, you shall be happy and good will be yours.

Delaying gratification is one of the most important things you learn in this life if you want to be happy. Just don't delay it forever, shrouds have no pockets.......

Well said. Also, nice cellar! I am looking into building a small one in my basement, might be a while but one day...

 

[Chochum]

This is a complicated question. It's actually more philosophical than financial. There is so much that goes into this. All of your life experiences play into this. My father died when I was 13, he was 39. It makes me somewhat less long term than some other people. I don't spend every penny, but I don't eat raman noodles or live like a student or a 70's hippie. When I was growing up, we were poor. I didn't know we were poor, but we were. One car (used). Vacation was a couple of days at a motel in Atlantic City. My first plane flight wasn't until I was 21.

Debt is a tool in our current financial world. Use it wisely and you will be successful. Don't and you will really suffer. Look at student loans. Let's say you borrowed 200k. That 200k got you a job making 100k per year for 30 years. That's 3 million dollars. Wise investment? That's up to you. better to borrow 200K and put it in the S&P 5000? Real-Estate? Some business venture? That's for you to decide.

Everyone decides what is important to them. I have newer cars now (2013 Cruze for me and 2013 Equinox for my wife). I have an 850 Fico score and I make over 170K a year with bonuses. I could have any car I want. I would never buy a Lexus or a Porsche or a Mercedes. It's not my thing. I do however have this:

That's $1,700.00 of wine. I have had the pleasure of drinking some of the finest wines in the world. There is nothing like a really good dinner along with great bottle of wine. That's me.......

To be happy, you have to always keep in mind this question. It was posed by a scholar thousands of years ago and it remains true today

Who is rich? One who is happy with what one has, as it is said, 'When you eat what your hands have provided, you shall be happy and good will be yours.

Delaying gratification is one of the most important things you learn in this life if you want to be happy. Just don't delay it forever, shrouds have no pockets.......

You are equating $1700 of wine with a Porsche?
Also if that's $1700 of wine its on average $18 per bottle. I don't think that's quite the "finest wine in the world".

 

[297point1]

Also if that's $1700 of wine its on average $18 per bottle. I don't think that's quite the "finest wine in the world".

Two Buck Chuck rates very highly in blind taste tests.

 

[confettiflyer]

I've found that I'm just as happy with a $75 bottle of wine as I am with a $150 bottle. My happy floor is like $20, but you've gotta put in work to find good $20 bottles of wine (time is money), and remember, that stuff varies year to year. At least I can taste the $75-$150 bottles at the winery before buying (no gambling going on).


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[PharmDBro2017]

I'm aiming at a happy medium between 2 and 3. Budget wisely: pay at least 1.5x or 2x on loans a month, max 401k, buy/rent a nice home, save a decent amount for an emergency fund each month, then spend the leftover (if any) on whatever I want (eating out, workout gear, etc.). No big or crazy purchases (new car, etc.) for a long time, or until it's forced.

 

[BMBiology]

You have two choices:

(A) live like a student for the next 10 years while you pay off your student loans and save for a house

(B) take on more debt while you take it easy paying off your student loans.

You want to go to school for 8 years and then live like a student until your 40s? Who wants this?!

The choice is yours. Take the hard road or take the debtor road.

I will have something a debtor will never have - a peace of mind. I know at the end of the day, I don't own money to anyone. I don't have to work for a company that I hate. I don't have to just shut up and take it. Is this more important than taking a fancy vacation? Driving a nice car? Living in a big house? Hell yeah!

I graduated during the Great Recession. All of the jobs were gone so I know how bad it can get. But I am used to this. I didn't realize it back then but my family was dirt poor. I am sure we were on food stamps but I had a roof over my head and food in my stomach. I never felt poor and I always knew my parents are there for me. I never care about all of these materialistic things. The best part? I learned how to struggle and to even thrive in hard times. I worked like crazy, paid off my student loans and invested heavily. Those investments are paying off handsomely. I am now in my 30s and I am in the top 1% income earner. I am already thinking about early retirement. Will it end one day? Maybe but you know what? I will still have a peace of mind, a roof over my head and food in my stomach - all of the things you need to be happy.


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[Reirrac]

The material things in life have little meaning to me. A fancy car and a big house is rather a headache to manage, and the concept of keeping up with the joneses is irritating.

A warm bed and good food with simple entertainment is good enough for me. So I'd go for option #4.

 

[Old Timer]

You are equating $1700 of wine with a Porsche?
Also if that's $1700 of wine its on average $18 per bottle. I don't think that's quite the "finest wine in the world".

First, did you count the bottles? do you know how many I have. Most people don't collect wine, I do. Cars are not for me. What I was saying and you missed the point entirely is do what makes you happy. I happen to shop at a wine store that specializes in low production European wines. So I have wines in my cellar that are $9.99, from a really nice Vineyard in New York that I get a case at a time. I also have some bottles from an amazing Vineyard in Germany that can go for $60.00 a pop that is out of this world. I don't need a first growth Bordeaux. If you know anything at all about wine ( I assume you don't) in France wine is by area. So if you want a Sauternes you will pay through the nose. If you just cross the river you can get a Loupiac that is as good as any Sauternes but 1/2 the price. This company finds these amazing growers and imports their wine. So yes, I have consumed some of the finest Wines in the world.

 

[ChalupaBatman86]

You are all missing the point with your Porsche comments. He spends a moderate amount of money on something that brings him a lot of enjoyment. That is a huge part of finding happiness and balance in your life.

 

[confettiflyer]

You have two choices:

(A) live like a student for the next 10 years while you pay off your student loans and save for a house

(B) take on more debt while you take it easy paying off your student loans.

You want to go to school for 8 years and then live like a student until your 40s? Who wants this?!

The choice is yours. Take the hard road or take the debtor road.

I will have something a debtor will never have - a peace of mind. I know at the end of the day, I don't own money to anyone. I don't have to work for a company that I hate. I don't have to just shut up and take it. Is this more important than taking a fancy vacation? Driving a nice car? Living in a big house? Hell yeah!

I graduated during the Great Recession. All of the jobs were gone so I know how bad it can get. But I am used to this. I didn't realize it back then but my family was dirt poor. I am sure we were on food stamps but I had a roof over my head and food in my stomach. I never felt poor and I always knew my parents are there for me. I never care about all of these materialistic things. The best part? I learned how to struggle and to even thrive in hard times. I worked like crazy, paid off my student loans and invested heavily. Those investments are paying off handsomely. I am now in my 30s and I am in the top 1% income earner. I am already thinking about early retirement. Will it end one day? Maybe but you know what? I will still have a peace of mind, a roof over my head and food in my stomach - all of the things you need to be happy.


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Top 1%...how he hell do you make > $434,600??


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[TheBlaah]

Top 1%...how he hell do you make > $434,600??

He might be referring to personal income, which is much lower, rather than household income. But either way, I suppose neither are outside the realm of possibility

 

[PharMed2016]

Top 1%...how he hell do you make > $434,600??

I recall BMBiology mentioning that his wife was an anesthesiologist at some point in the past.

 

[Momus]

I recall BMBiology mentioning that his wife was an anesthesiologist at some point in the past.

Nah, he missed a 0.