I actually have been dedicated to thrifting since middle school, largely as a consequence of my parents’ saving habits. They drove outdated cars, wore the identical clothes for many years and preferred to drink water in restaurants.
Today I drive a nine-year-old automotive, I prefer to repair my things slightly than replace them, and I normally drink water with a slice of lemon after I eat. It is deeply ingrained in me to get probably the most out of my possessions.
However, excessive frugality can affect quality of life. From buying substandard items to arguing over spending with my wife, I do know balance is essential.
Then at some point, a precious gift card helped break me out of my frugal tendencies.
A present card helps frugal people spend money
A Financial Samurai reader who works at an insurance company invited me to talk to her team during their annual offsite talk.
As compensation for my time, they generously purchased copies of Buy this, not that for all employees and sent me an attractive gift box with a $500 gift card.
While I’ve received two smaller gift cards previously for $10 and $20, this one was unprecedented. Surprisingly, I spent it relatively quickly. Every time I made a purchase order, I felt like I used to be getting something without cost, despite the fact that it was money I earned.
Given the numerous value of the gift card, I felt compelled to make use of it immediately to avoid any risk of loss or theft. Since a withdrawal was impossible, I needed to take into consideration which items I desired to purchase.
Don’t receive numerous gifts for a selected reason
Here’s a reasonably sobering realization: I rarely get gifts from anyone apart from my wife. Not from my friends, not from readers, not even from my parents. The fundamental reason? I are inclined to keep my achievements and private milestones to myself and leave others in the dead of night. It will not be a part of my culture to rejoice the person.
Those who appreciate my work and would really like to send something might want to navigate to my “About” page and scroll all the best way all the way down to find my mailing address. I deliberately avoid using pop-up menus or donation banners. Oh, and as a substitute of sending me something, I’d slightly you send money to a charity you actually care about.
Growing up, my birthday was at all times missed since it falls through the summer holidays when school is closed. As a result, I never experienced the everyday birthday celebrations that my classmates experienced.
I vividly remember a disappointing incident after I was 13 years old in Kuala Lumpur, Malaysia. I rigorously planned a celebration and invited about 40 guests, of which only about ten showed up. Within an hour, most of them left for an additional meeting. That moment destroyed my desire to host events.
However, because I give attention to the positive, I actually have made it a private rule to attend events that I’m invited to. I understand the trouble involved in planning and may understand the frustration on the low turnout. By showing up recurrently, I help the host never feel the identical as he did as a 13-year-old boy again.
Every gift card purchase felt like a present
Even though the $500 I received was payment for a speaking engagement, I discovered great satisfaction in spending that quantity. In comparison, I do not enjoy depositing a $500 payment into my checking account, despite the fact that I normally would.
This lack of earning joy is comparable to the explanation I prefer investing in real estate over stocks. At least I can enjoy my wealth and potentially earn a return at the identical time. Stocks, then again, offer neither profit nor joy.
Here’s a glimpse into my transaction history, where every purchase felt like a present, despite the fact that many were necessities. Let me introduce you to among the items I purchased with the gift card.
On Saturday, April 13, 2024, I spent $114.92 on Supreme gas. Although I realize that choosing top-of-the-range gasoline is a waste of cash, I actually have decided to treat my Range Rover Sport to regular fuel after seven years. Supreme only costs about $8 greater than Regular.
Then on Monday, April 15, 2024, I treated myself to 2 Wagyu Rib Eyes from Snake River Farms and spent $72.94. Fresh from a family ski vacation in Palisades Tahoe, I used to be craving a high quality steak. Although my wife and I normally wish to share a 28-day-aged rib-eye from Six Peaks Grill at Everline Resort, we decided to save lots of $85 after tax and tip by choosing Wagyu steaks decided to go to the local food market. The entire dinner would have cost about $150 after tax and tip.
The following day, Tuesday, April 16, 2024, I provided $126.20 for rocks, mulch, weed killer and stakes. Since my daughter will not be in school on Tuesdays and Thursdays, I took her to gardening and landscaping.
We plan to tackle a landscaping project in our recent home and make it a father-daughter bonding experience. With this project I would like to show her the values of labor, maintenance and the impermanence of things.
Other purchases made with the gift card included a visit to In-N-Out Burger, extra gas and a few snacks. How nice it’s to have the flexibleness to spend my gifted money nevertheless I would like, as a substitute of pretending to enjoy one other sweater.
Give the frugal people in your life a present card
Even though a $500 gift card doesn’t significantly reduce our household expenses, it has reignited my enthusiasm for spending money. Interestingly, it has also led me further towards decumulation, a spending phase that I initiated in mid-2023 after I turned 45.
When people like me who strive for financial independence earn extra income, our instinct is often to prioritize saving. We are conditioned to save lots of most of our income for an uncertain future and infrequently find spending money difficult. We continually weigh the chance cost of spending for potentially higher returns.
For example, receiving a major capital distribution in 2024 from an actual estate investment I made in 2017 was a powerful reminder to me of an investment’s potential. Each of those reminders makes it increasingly difficult to part with money.
However, with a present card, saving and investing the proceeds will not be an option. The money have to be spent, otherwise the cardboard will expire or be misplaced. So if you wish to encourage a frugal friend, loved one or parent to spend more cash and revel in life more, consider gifting them a present card and experiencing their joy.
For two weeks, I enjoyed spending my gift card on items I won’t have otherwise purchased. And I’m grateful for that. Now it’s back to saving and investing as much as possible to regain a few of my lost passive income!
Reader questions and suggestions
How did you spend a present card when you received one? Was your spending behavior different than when you were spending your personal money? What are the opposite benefits and downsides of giving a present card?
Perhaps even higher than a present card is giving the gift of education. Get a replica of this Buy this, not that, my quick Wall Street Journal bestseller. The book helps you make more optimal decisions so you possibly can live a greater, more fulfilling and richer life.
Learn more about world-class money flow management Authorize, an exceptional wealth management tool that I actually have relied on since 2012. Empower goes beyond easy budgeting to offer insight into investment fees and retirement planning. Plus, it’s completely free.
