Friends of mine were talking about coffee. What beans they use, whether they grind beans or use a French press or a moka pot. One of the coffee lovers was said he uses a Nicholas Mosse French press that cost €121. For someone who drinks Gold Blend instant and has a caffettiera that I bought in Ikea for €8, I couldn’t understand this expenditure.
We all have something that we brings us enjoyment and we find value in. There are lots of cyclists who will spend €4,000 on a bike. It will bring them a lot of joy and pleasure. That is a family holiday for others where the time off work and spending it with the family is worth it instead.
It is important for people to think about what is of value to them and what is not. What do you enjoy in life and what brings you pleasure. This should be the focus of what you spend your money on.
Not everyone will have the same beliefs as you. If that is your spouse, you need to discuss it. It will save arguments and tension if you both know what is of value to your both. It will also help you stop comparing yourself to your neighbours. They might really love having a big, new car, which you think is a waste of money. Meanwhile, they are talking about how you spend all this money on fine dining in high end restaurants. It is about what is of value to you.
We have a finite amount of money. And a lot of it is taken up with mundane items such as household bills, mortgages, shopping and transport expenses. For most people, you can’t have everything you want, so you need to think about what will bring you the most enjoyment and what you need to do to get there.
You need to be realistic about when you are going to be able to achieve these things. I love my annual family holiday but I would also love to spend a year travelling around Australia. We can go away each year with only a small bit of planning but taking a year out and travelling around Australia is something that will have to wait until retirement, which will give me plenty of time to plan. I also know that for both to happen, I will have to spend a bit less on things that aren’t important to me and save that money for things that are.
In 20 years time, I am more likely to talk about the great family holidays we had than having the latest iPad.
What is important to you? Let me know at steven@bluewaterfp.ie
Steven Barrett
05 October 2020