[USER]

What’s your formula or philosophy for knowing when you can splurge on big ticket items?
My household net worth is $2.3MM. I have a very strong urge for my husband and I to go on a 21 day cruise to Antarctica.

The problem is that it costs $23K per person, not including flights. Specifically I’m looking at Quark Expedition’s “Epic Antarctica” which includes stops at the Falkland Islands and South Georgia, on their Ultramarine vessel.

Let’s set aside the fact that if I’m willing to do a shorter 9 day itinerary on an older vessel and willing to book very last minute I can get the price much lower.

Let’s just say it’s $23K per person or pass, so basically a $50K trip.

How do I know when our financial situation can handle such an expense?

See if I knew for a fact that this was a one time thing, I wouldn’t be asking this question. Because I don’t think spending $50K on a trip once a decade is going to hurt us. What I’m afraid of is the slippery slope.

The memories we make from this trip will be priceless since we absolutely love the outdoors, especially if it’s a mix of outdoorsy stuff mixed with luxury.

But purely looking at the numbers, this $50K purchase has a 100% depreciation rate. If we blew $50K on a car at least we could sell it for something if need be. But with travel, the money is gone.

So understanding that we hypothetically just blew $50K, would we then use that as justification to spend our money on virtually anything?

We eat out all the time, but it’s usually $20 per person. Would we now say, ok we just threw away $50K on one trip, why not exclusively eat out at $200 restaurants every day?

Why not tip the barista $100? Why not change our housekeeping schedule from once every six weeks to perhaps seven days a week?

I’m wondering if anyone here has experience with balancing this sort of thing where you splurge on something you really want while keeping the rest of your spend in check.

Or is it better to accept the fact that it may be a slippery slope and put this trip on hold until we reach $10MM, which would probably be about 15 years.

[Tyler]

If one of you died next year would you wish you have gone of the trip?
Then go

[Jeannie]

What is the purpose of you building wealth? Or what was your reason? Why?

[Sue]

I don’t think it’s a slippery slope – I think that happens with smaller items because it’s less noticeable?

IMO you spend money where you see value – we don’t have fancy cars, but I wouldn’t hesitate to spend money on travel if it’s something I really want to do.

Especially as there are some things that will be way more enjoyable when you’re younger/fitter.

There are tour buses on the Amalfi coast full of older people who are not agile enough to deal with the never ending stairs so don’t do much more than look out the windows!

[Jessica]

Can I suggest you shift your framing? Saying “blowing” money on a trip is a terrible mindset – your memories and experiences are priceless at any cost.

Set aside the money for this trip and don’t think twice about it. Please don’t have guilt around experiencing joy.

That guilt will ruin any trip you take. You’re in a very privileged position – enjoy it!

[Dena]

It can be a slippery slope. We are having an expensive unplanned bathroom renovation. A leak turned into… turned into…. remodel in$anity.

And so yeah, the other night I spent too much on dinner and I heard that voice… “with all you are spending on the bathroom, this isn’t going to be what breaks you.”

And I heard it again when selecting a hotel for travel.

I’m not suggesting you skip the trip, but hopefully someone has tips to tame the slippery slope dragon.

[Alka]

Go on the trip. You don’t go from spending $20 pp when you go out to eat to a slippery slope! You are at $2M+.

You’ll be fine. This is clearly a trip you’ll value.

And send me video!! It’s a bucket list item for me

[Nisha]

You are seriously over-thinking this. You don’t go from a frugal mind set to an over spender overnight. Take the trip and thoroughly enjoy what your money is buying you.

This is value based spending.

Tipping the barista $100 would not be value based spending.

Waiting until you have $10MM is quite frankly, ridiculous- in 15 years you may not have the health or even be alive to take this trip.

[Sarah]

I don’t think it’s a slippery slope. I think we all have things we prioritize and are willing to spend the money on.

I would go because (for me) travel is the one thing I splurge on.

We don’t drive fancy cars, wear expensive clothes, or eat out often. But travel?

Yes! We have a hefty travel budget because it’s something we both enjoy, and have decided to skimp in other areas to make it happen.

[Salma]

Memories that you make are as important, if not more, so go on the trip. Life is short.

[Jonathan]

Experiences perform much better for building happiness at the time and happy memories than purchasing stuff since with stuff your baseline resets to norm very soon after purchase.

Antarctica is once in a lifetime, and the other six continents can be enjoyed at much less expense.

[Donna]

Enjoy your money otherwise, someone will go spend that $50k with no guilt whatsoever since it’s free money/inherited from you.

I’ve seen this, son/daughter-in-law will splurge the money from hardworking in-laws who worked to death and deprived themselves of pleasure.

[Chloe]

Wait 15 years?! in 15 years your eyes, your body, your whole self will not be up to the same level of health that they are now.

I deeply pity the octogenarians who sleep their way through their dream vacations with aching bodies and poor eyesight.

Take the trip while you’re in good health, treat it like a once in a lifetime opportunity and a goal that you’ve both reached together. No need to change your daily spending habits after.

[Susan]

My aunt and uncle did all the continents in their mid 50s to maybe early 70s. They lived a very active lifestyle.

He was diagnosed with ALS in his late 70s, bedridden, and gone before 80. I know they’d vote Yes to the trip.

[Kay]

What is this trip worth to you in memories and cherished time with your partner? These are what we take with us when we die. It can’t be quantified.

The fact that you are cautiously going into this is testament to the way you think and that’s a very long way from that slippery slope.

If your partner is onboard, then take the trip.

[Henry]

The path that got you to 2m is the one I’d expect you’ll default to…but learning to enjoy the journey…i.e.

the next 15years is key to keeping the same diligence and also key to not regretting the journey.

The memories will pay dividends and give you peace to sit in the saddle…weather this one and see how it feels financially….it’s just money…….contrast it with running out of time or health to enjoy it.

It’s a primo trip to be sure but that’s what the money is for…to spend where you enjoy.

[Jeff]

Don’t think I’d be able to pull the trigger on that one, but that’s just me. I’m more practical. If you’d rather take one trip versus 5, personal preference.

[La]

What’s the point of saving and holding on to your money if not to take advantage of once in a lifetime trips??

You only have one life to live— enjoy the fruits of your labor if you can afford!

Experiences and travel are priceless.

[An]

I’d say Go! I went and never regretted it. I realized you regret what you don’t do more than what you do. And money comes and goes. If you spend on the trip, you have the experience.

If you put it in the bank/stockmarket, it will magically find way to go up or down. If it goes down, you lose the trip for no reason.

If it goes up and sits in the app, you life does not change a bit.

Also, 10MM is probably unnecessary if you do not have obvious reason for it, it is just a round number that everyone loves to bring up in my opinion.

[Author]

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