Are we the misers?

[Freedom]

The Independent (http://news.independent.co.uk/uk/this_britain/story.jsp?story=479069)
just published the following story, based on a survey by Yahoo! Personal Finance.

"Start saving: the dream lifestyle will cost you £2.6m (or 94 years' wages)"

They surveyed x hundred people, and costed the lifestyle they said would make them happy.

From the data, people were segmented as follows:

45% playboys or girls enjoying a party lifestyle
39 % were "flashers", which stands for funds low, always spending heaps
15 % fell into a "happy chaps" category, having accumulated plenty and maintaining the lifestyle they want
1% were misers, making their money work hard for them


Hhmm ... not sure this is the way I want to think about myself

 

[kierank]

I don't mind being in the 1% - always thought I was special, unique, ...

 

[Sim]

Well... 1% of the Australian population is still around 200,000 people, not exactly unique

 

[kierank]

Sim,

I will re-phrase it for you:

"I am special, unique, ... and I don't mind being part of the 1%"

 

[Jamie]

Originally posted by Freedom
From the data, people were segmented as follows:

45% playboys or girls enjoying a party lifestyle
39 % were "flashers", which stands for funds low, always spending heaps
15 % fell into a "happy chaps" category, having accumulated plenty and maintaining the lifestyle they want
1% were misers, making their money work hard for them

Why be a miser, and hoard money you never get to enjoy? Id rather be in the 15% who have toiled for their wealth and then use it to live the kind of life they worked hard to afford.

Jamie.

 

[Tim]

Freedom,

this is an interesting discussion. There are many statistics and viewpoints on this, I was particularly inspired by the information contained in the book 'The Millionaire Next Door' (which I think someone else on this forum disussed, perhaps Ace Ducey), and a whole lot of other stuff, such as the Rich Dad poor dad et c etc, plus other general economic/sociological readings.

Yep, it seems true, international OECD based research would suggest that those with more money are happier than those with less (relative to a range from poverty to affluent, it would appear this doesnt hold as true once you become a mega wealther).

You know, I think what is relevant here though is timing. It woudl seem that around 95% or more of people live for the day, and have extremely poor money management skills. So if they are living it up today, it is very likely when they can no longer produce income, and the govt cant help, they will be stuck.

However, I think the likes of most property investors on this forum, are probably achieving a balance, where they excercise a diligent level of frugality, attempt to live within their means, and are prudent investors. The reason? Because they KNOW that most every one else gets it wrong, so this is the way (one way) to improve on the finacial game.

Also I would imagine that another reason people invest, is because they also know that money can make things a whole lot easier, so they are actually wanting to get and make money so the CAN have the fun and parties, or just feel comfortable knowing they can have the things they want.

It is most likely people who excercise a delay in gratification are going to value financail independence very highly and possibly above financial hedonism anyway, so their ability to excercise control and have fun all along the way is probably a bit more balance anyway.

I see myself as in the 15% personally, I think you can be too hard on yourself, it is suprising however that if you can gain financial independence so you dont have to work, you dont have to have massive wealth after that to still enjoy life.

I would rather have abstained and excercised control along the way, including giving myself rewards along the way, rather than party hard, trying to 'find' some meaning in life through largely escapism, and I figure on retirement (not thaaat far away), I will be a hell of a lot more party minded than those people still slogging away for someone else.

My two cents worth...............

Timbo

 

[sanchez]

Each to their own, but personally I try to find a balance between financial stupidity of both extremes, i.e. spending money inefficiently for frivolous things on one end of the scale and hoarding money for a future that never comes on the other. I have seen both of these extremes in people, and neither seem too sensible to me.

Sanchez

 

[kierank]

Re: Re: Are we the misers?

Originally posted by Jamie
Why be a miser, and hoard money you never get to enjoy? Id rather be in the 15% who have toiled for their wealth and then use it to live the kind of life they worked hard to afford.

Jamie.

Jamie,

You may have mis-read the post - it said:

"1% were misers, making their money work hard for them".

That is, their MONEY work hard for them - it does not say that THEY worked hard. Also, it did NOT say that they weren't enjoying life.

I am definately trying HARD to make my money work HARD for me

 

[Jamie]

Hi Kieran,

I didnt miss the point you were making

My own point had more to do with the definition of a miser.

mi·ser; One who lives very meagerly in order to hoard money

: a covetous, grasping, mean person; esp., one having wealth, who lives miserably for the sake of saving and increasing his hoard.

: a hoarder of money and possessions (often living miserably)


I agree that its important to make your money work hard for you, rather than vice versa. My point was that its no good doing it solely for its own sake - its of little value if you dont enjoy it.

I guess we should aim to fall somewhere in between these 2 categories

Jamie.

 

[JonY]

Originally posted by Jamie
My own point had more to do with the definition of a miser.

mi·ser; One who lives very meagerly in order to hoard money

: a covetous, grasping, mean person; esp., one having wealth, who lives miserably for the sake of saving and increasing his hoard.

: a hoarder of money and possessions (often living miserably)

I guess if any of us identified with even one of these definitions, it's time to pull back on PI and start focussing on human/e values. *shudders @ the thought of*