Rewarding yourself on reaching equity milestones

[monalisa]

Hi all

Curious on how people reward themselves on reaching certain equity levels/milestones.

E.g. when I reach $X in equity, I will go on a world tour.

For us, as we had a good year in real estate last year, with Sydney markets doing well, we decided to reward ourselves by going away on a last minute overseas trip over the Christmas break.

We do have a few things in mind for future, e.g. travelling business class, buying ourselves a nice watch, to list a few rewards.

How have you rewarded yourself in the past? How do you plan on rewarding yourself in future?

Monalisa

 

[DaveM]

Nothing really. You cant eat equity, unless you are a termite

 

[joeExpat]

No. I've always viewed large equity gains as good luck rather than good work, so nothing to reward myself for.

Tempting though to do the opposite, punishment for losing a lot of equity, just to ensure lesson learnt.

p.s would never travel business class on my own tab, total waste of money.

 

[flightcrank]

depends where you are in your investment cycle.

But yeah i believe in rewarding your self for the efforts you have achieved. My debt started out costing me hunderds per week. A few years later its only a minimum of $50 a week now. I treated myself to a new motorcycle a few weeks ago. Granted it was a bargin at only $4k, but im still in the building equity phase, but i can do both. Plus i had my last vehicle for 10 years so it was about time i treated my self ! At the end of the investment cycle however, im sure we could all afford bigger rewards.

 

[monalisa]

No. I've always viewed large equity gains as good luck rather than good work, so nothing to reward myself for.

Agreed, as gains are based on external factors.

However, delaying gratification, and investing your savings in the 'now' is to increase your wealth and means, so you may spend on what you could have to begin with (and possibly more).

 

[see_change]

We had an overseas holiday , spent more than we earned and bought a weekender ....

Cliff

 

[Aaron_C]

I measure the time to reward based on income rather than windfall capital gains. Although usually they are correlated.

 

[Singo]

There are no equity gain milestones for us. Cashflow is what we look at. Equity gain can be used if cashflow goes up. Once cashflow goes up, we will reward us by working less hours

 

[datto]

As soon as I attain 1 million in equity I will reward myself by quitting my day job. I just hope this property boom doesn't fizzle out otherwise I will have to wait another10 years for the next boom. That's a long time to wait for a reward!

 

[ZachAnSel]

Normal BAU for us
when we reach some level on our equity, what we do is draw down and reinvest. Damn, no wonder we will never achieve 1mill equity level. Never let lazy equity doing nothing..

For us the feeling to keep going/winning give us more satisfaction than break/pause. I remember my wife and I was feeling bored on our holiday, but we still have to visit relative and family.

 

[Richard Feynman]

I haven't set specific milestones to celebrate having $x equity.

But the way I'm rewarding myself is by reinvesting the lot -- being able to retire even earlier is a fair way to treat myself.

 

[MIW]

Hi all

Curious on how people reward themselves on reaching certain equity levels/milestones.

E.g. when I reach $X in equity, I will go on a world tour.
...
How have you rewarded yourself in the past? How do you plan on rewarding yourself in future?
Monalisa

Just exactly like you say, along the way certain % is spent on the things you want (not necessarily need).... As long as the equity will grow more than what you spend you deserve to reward yourself.
You remind me when few years back a family member asked what was I getting for my birthday, as I said a house, as that's what I wanted (we bought just than another IP), you should see the funny look we received.....
Now, we are doing just that, flying soon business class, buying collectibles, treating family to nice gifts, donating, whatever you dream than you do.....
I like that idea of setting a list of 100 things you like to do before you die, especially when we get older, than we start doing the things from the list, it's a great feeling... why not start the list now and enjoy the journey!

 

[FelixL]

Just looking at the numbers are enough reward

Spending a fortune on paper gains?

I only have one real milestone, which is the day where passive income from property/shares/super combined equal to expense. Then might celebrate a little

 

[MIW]

Just looking at the numbers are enough reward

Spending a fortune on paper gains?

I only have one real milestone, which is the day where passive income from property/shares/super combined equal to expense. Then might celebrate a little

Once you assets are higher than your expenses and cash flow is left over each month you will feel different.... Also pulling out a property title from the bank when refinancing because enough equity is somewhere else is such a great feeling.... You can sell or refinance and perhaps spend some, right?

 

[Oscar]

How have you rewarded yourself in the past? How do you plan on rewarding yourself in future?

Monalisa

rewarded ourselves too many times. Booked the queen mary 2 from Southampton to new york this july! the last 6 months has been a continuous celebration but more because wife reaching a certain age milestone...

no point making money if there is no intent to enjoy it.

 

[baby blue eyes]

Monalisa,

Yes,reward yourself, we did, flew business class on it last trip and enjoying the view in Monte Carlo at the moment.

Enjoy each moment, you don't know when it's your last.

Business class is a luxury and points help you get there. We paid for one and points pains for the other.

The equity gain does not pay for it, our cash flow does, but the equity gains are what make the difference in wealth

Vicki

 

[LoneWolf]

Definitely reward yourself Mona, otherwise what is the point

 

[Rickardo]

monalisa,

Definitely reward yourself, but don't feel any pressure to reward yourself with material things if that's not what you're after, it's really quite a personal choice.

Some may want a new car, holiday, etc, others may choose to work less, spend more time lounging around reading books, etc. They are all rewards.

When I first started investing I had a reward goal of buying a luxury car when I hit $1mil in equity. As it starts to get a lot closer I think i've changed and it doesn't really concern me anymore. I'm more likely to just reward myself as I feel it's appropriate, rather than a particular thing at a numerical milestone.

 

[beachgurl]

When I first started investing I said I'd like to go to Tetsuyas for dinner when we hit the mil milestone. Now we are nearly there I say stuff Tetsuyas and let's trade in the Hyundai for a Beemer

 

[TMNT]

hey monalisa, no offence but you seem to not know what you want, and seek others clarification,

honestly, do what makes you happy, dont go on that holiday because someone has and it wont make you happy, dont buy the new car because someone else has and you have no interest in good cars, dont buy a new branded wardrobe when you feel more comfortable in your own clothes!!

when I hit my equity milestones, I spend it!!!! I buy more ips!