RightI guess one thing I always had in my head was the power of compound interest....
If I assume that any saved/invested funds double (in real term) every 15 years, then:
A dollar I spend on my retirement day is worth $1.
A dollar I spend 15 years before retirement is worth $2 at retirement.
A dollar I spend 30 years before retirement is worth $4 at retirement.
That $16 cocktail when I'm 40 yo feels like spending $64 for a cocktail!!![:oops:]( "D'oh")
even more if I think about tax advantages.
If I assume I will value a purchase or service as much when I retire as I do beforehand... then I feel a pressure to not spend when young.
But that pressure abates exponentially the closer I get to retirement (currently about 14 years away).
And once you've "won the game" then it should be even easier because you say if I spend 30 bucks on 2 cocktails, it won't matter one bit to the rest of my financial life while I'm alive
Statistics: Posted by Hogan773 — Mon Mar 18, 2024 10:29 pm — Replies 129 — Views 10576