As tends to be the case these days, a large number of people head to the internet to ask questions. Sometimes anonymously, sometimes not. While more and more of these questions will likely be asked of AI as we go forward, plenty of people still like to ask questions and converse with each other online.
The questions range across a lot of areas, but money, home maintenance, cars, medicine and health are popular categories. This is evidenced by the fact all of these areas have multiple forums on the internet set up to cater for discussion.
If you’ve started a new medication and you’re seeing some side effects after being reassured by your doctor there are no side effects, it can be helpful to see what others have said. We’re not advocating this before going back to your GP, but it’s what some people do. If you’re pondering a new car, or even a used one, you might go online to ask about the reliability of certain models and years. The crowd does have some value in this respect.
When it comes to money, there are generally three broad areas of money talk. Level one is usually discussions on budgeting, saving and getting out of debt. Level two steps up to investing, where there’s a general acceptance on what to do, but the implementation is often haphazard. Level three hits the dilemmas and the psychological issues around money. A fascinating dilemma recently appeared on a financial independence/early retirement forum.
We have our net worth approaching $10 million, and we are in our mid-fifties. We are used to middle-class life. We could, in theory, live a much more affluent life and spend 4% of our net worth annually, likely without losing principal. But what about in practice? Spending money always involves “doing something”. For example, travel, or “toys” like boats or RVs.
I am not a stranger to any of those things, but here’s the catch: they all require a significant amount of work, maintenance, and so on. Even going out on them takes a lot of effort. And I feel that lately, my energy levels are not what they used to be, and I would rather sunbathe in my backyard or read something rather than do something grand.
My wife also enjoys simply sitting and watching TV. And so, a question arises: are we really capable of spending that much money? We already live in a relatively large (for just two middle-aged adults) 5BR home. It would make no sense to get a bigger home, for example. Travel, let me just say, is exhausting. What are our options?
Champagne problems, or maybe no problems at all, but it does show our minds are capable of presenting concerns no matter where we are in life. In this case, if you end up with more than you might need, you may have trouble feeling like you’re properly utilising all that wealth. This causes some psychological worries.
What to do in such a situation? Firstly, it may not take $10 million to feel like this. At 10% of that figure with a paid off home, a person would start to feel more comfortable. If they’re not much of a doer, then they may not be much of a spender either. What to do if the account keeps building up?
One way to think about this is reconsidering what “spending” means. Spending doesn’t have to involve big-ticket items, constant travel, or high-maintenance luxuries. It might be creating ease instead of activity. That could mean outsourcing tasks that drain energy. The lawn and garden, the house cleaning, or even today you can order your groceries online and have them dropped at your door.
None of these are glamorous extravagances, but delegating them can make your day or week more enjoyable. That’s if you don’t find them enjoyable. Another option is to use money to increase your comfort. If you like reading and watching TV, then you should make sure you’ve got the most comfortable reading chair and lounge suite. Have your backyard landscaped so it feels like a retreat. Investing in health and wellbeing options that improve your quality of life.
There’s also the angle of giving. Some people with more than they know how to spend find satisfaction, not in the act of buying, but in directing money toward causes they care about. Supporting scholarships, funding community projects, or even helping friends and family can bring a sense of purpose. In these cases, wealth functions as a tool for impact rather than self-indulgence. For people who don’t want the stress of “doing something,” that shift in focus can solve the dilemma.
Another possibility is renting instead of buying. Occasional indulgences without doing a lifestyle overhaul. Instead of buying a new caravan or RV that sits unused and prompts maintenance, it’s not hard to rent one for a single trip. Instead of buying a second home, it’s not hard to find a rental in a holiday location these days. If you do want to “do something” you still get the same experience while throwing back the keys when you’re done and resuming low-maintenance living.
Ultimately, the question isn’t just whether someone can spend large sums of money, but whether spending aligns with what they actually enjoy. If the reality is that quiet afternoons at home are more satisfying than jet-setting, then there’s no need to force “big spending” simply because the means exist. For some, the ultimate luxury is freedom from obligation, not more of it.
If money throws up a dilemma, it’s going to be our own interests and values that solve it. Wealth doesn’t need to be maximised in its use, only aligned with the life you want. If that life is quiet, unhurried, and simple, then the money has already done its job. The real challenge isn’t in spending, but in allowing yourself to be content with having more than enough.
Recognising that might be the truest form of abundance.
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.
With thanks to FYG Planners for this article