Cash/to Price or Income/to Price

[HONDABBQ]

I have a side business that I take all the profits from and buy what I want when I want. If it takes me a summer to save up for something so be it. My issue is I like to have a reserve after I make a purchase in case something else comes around I want, so sadly in my head I have to have 30% more than I need to make a purchase to make said purchase.

[m j b]

Good question and excellent responses.

For me, personally, it's kind of a combination of all of the advice above.

I always pay cash for trinkets.

I never spend money that I can't afford to lose (even though my watch(es) is/are insured)

A special event is always a good justification. My first Rolex was a celebration of me paying off my mortgage.

After a year or two, I upgraded it to a six digit model. Then the green one. Then the slippery slope got covered in ice...

And earlier this year I made a huge stock market gamble (well... not huge, but very large) and on day one it was down so much that I couldn't sleep, peeing blood, you get the picture. Day two I was even and day three I was ahead and got out.

During the night of day one (when I was so distressed) I resolved that if I got out of the position with a decent profit, I'd buy that BLNR that I've been lusting over.

[Oceanlover914]

Originally Posted by Formulansx

I get a hairbrain idea that I need another Rolex. Save for X amount of time that is always less than half of the time I actually need to save. End up pillaging another account of mine to buy the watch because I'm impatient. Then pay myself back interest free

^^^^^^^^^^At least I am not the only one^^^^^^^^

[AK797]

Originally Posted by m j b

Good question and excellent responses.

For me, personally, it's kind of a combination of all of the advice above.

I always pay cash for trinkets.

I never spend money that I can't afford to lose (even though my watch(es) is/are insured)

A special event is always a good justification. My first Rolex was a celebration of me paying off my mortgage.

After a year or two, I upgraded it to a six digit model. Then the green one. Then the slippery slope got covered in ice...

And earlier this year I made a huge stock market gamble (well... not huge, but very large) and on day one it was down so much that I couldn't sleep, peeing blood, you get the picture. Day two I was even and day three I was ahead and got out.

During the night of day one (when I was so distressed) I resolved that if I got out of the position with a decent profit, I'd buy that BLNR that I've been lusting over.

Glad you got out of that bad position, but not a good mindset to think if my stock's a loser I'll sell when it breaks even. Always try and run your profits and cut your losers, don't hope, don't feel, just execute. And never average down, rather pyramid up.