I have mentioned 'The Sketch Guy', Carl Richards before, he does a column in The New York Times and has some great ideas for us to share with you. This is the latest idea and it resonated with me.
As Carl says: Here’s a super loaded question: Is it worth it?
We ask this question a lot when it comes to how we spend money, and I think it’s incredibly important to understand what we value. We can start by ignoring what everyone else thinks and focusing on what we decide is worth it.
What do we place value on, and why.
I thought about how this relates to me and came up with a few examples. As you may have worked out, I love cycling.
I have friends who also love cycling, but the value that they place on their bike is different to mine. I purchased my lovely Sarah Ulmer womens professional bike 16 years ago now (gosh that feels like a long time!) It was really expensive for me then - about $2500. It is beautiful - if a bit faded, and I LOVE it. I love getting on it, love looking at it and love riding it. I don't need a new one, it's perfect for me (until it gives up the ghost).
Some of friends invest a lot more in their bikes - up to $20,000 - and they get new bikes regularly.
On the other hand, you may also know that I like to travel. But I HATE travelling all scrunched up, and ending up at the end of a long haul flight tired and grouchy. So, I invest my money in buying a business class airfare (But I do search again and again and again to get them when they are on sale). For me, the flight is part of the holiday and the experience, and not just a means to getting to my destination. That is important to me - but again, I have good friends who cannot see the value in paying that much for a flight.
It is important to understand what is important to you, and why.
Have a think about the trade-offs you make - and the pleasure that you get from your money. Your happiness is - after all - a core part of your financial planning.
Regards, Carey Church