Comments on: How would you spend and save if you knew exactly when you were going to die?

By: The Investor

The Investor — Sun, 06 Dec 2009 15:27:38 +0000

@Bret, thanks for stopping by. I’m a big proponent of paying yourself first, and agree it’s a great strategy. And in general I agree it’s not always worth scrimping on the small things – it’s better to grow your income.

That said we all have our ‘money allergies’ and bottled water is one of mine! But I mentioned it more to point out how I got discussing and thinking about the subject of money with my girlfriend, rather than a rant about ever spending any money on frivolous things.

The idea is really to re-realise why we do the things we (hopefully) do, such as saving and investing. Sounds like you’re well on your way already.

By: Black Coffee: My Favorite Blogs, Money News & Opinions #24

Black Coffee: My Favorite Blogs, Money News & Opinions #24 — Sat, 05 Dec 2009 00:03:23 +0000

[...] Monevator… for Investor’s very thought-provoking and well-written post explaining how he would spend and save if he knew exactly when he was going to die. [...]

By: Bret @ Hope to Prosper

Bret @ Hope to Prosper — Fri, 04 Dec 2009 22:57:57 +0000

Monevator,

You are way overthingking this whole death thing.

First, I am with Len in that I would much rather not know when I am going to go. And, I also have a family to look after, so mine is only one of four lives affected. So, the date of my demise is irrelevant. I have to be prepared for whenever it occurs. That’s the end of the morbid part.

Now, here is the fun part. You should both enjoy your life and prepare for the future. What I do is to Pay Myself First (I save 20% of my net pay), then I enjoy my life with the rest of my income. As long as I don’t overspend my remaining income, who cares about a buck (or Pound) here or there.

Counting pennies or bottles of water isn’t enjoying life. Having dinner with your girlfriend could be enjoyable, if you don’t have to itemize the bill. Having money put away for your future is definitely enjoyable.

By: The Investor

The Investor — Fri, 04 Dec 2009 09:16:55 +0000

Thanks Len, that’s a very good point. I can only blame in increasing order of importance:

(1) Reflex thinking
(2) I finished the post at 2am and was foggy headed
(3) I’d already written 1,300 words, and I thought readers might tire of every permutation. (Honestly, how do these power bloggers stay so concise?)

In response, I’ve added a line to the article stressing my perspective and calling for other view points, and I’ve also written a quick post about how your thinking might change with a family.

Finally, I love the image of going out in a haze of bursting CO2 bubbles in a bathtub. I will flag it up to my girlfriend next time she orders a bottle!

By: Len Penzo

Len Penzo — Fri, 04 Dec 2009 03:53:14 +0000

I notice you have taken the perspective of a single man with no kids. But what if you have a family, Investor? That changes the calculus yet again!

For example, if I was single with no kids and knew I had two months to live – or five years, for that matter – then I would make sure the last penny of my savings would be used to pay the mortician who cremates me.

Ah, but with a wife and kids, those thought equations are turned upside down.

In that case, I would most likely continue dutifully investing, paying down the mortgage, and saving as much as possible in order to ensure my family was as financially stable as possible after my death.

In the end, I hope I never find out how much time I have left in this world, be it 2 months or 25 years. If I am going to drown in a bathtub filled with two-pound-per-bottle seltzer water, then I’d just as soon be completely surprised as to the exact date of my demise – thank you very much.

Happy Christmas, my friend.

Len
Len Penzo dot Com