Let’s get philosophical before I tell you how I’m about to blow $4,000 on things people may think are “trivial.” What’s the purpose of money?
As some of you know, the Men’s NCAA Basketball Championship is winding up right now. Last weekend, the top 8 teams played to whittle the field down to only the top 4. (Various copyrights prevent us from actually calling the top 4 teams what they truly are – and the “ultimate four” doesn’t quite have the same ring-J). For those that watch or follow college basketball, there are four great teams left – one of whom I’ve followed since birth and still watch religiously. They haven’t been this far in a long, long, time and may not make it again for a long, long time.
As my wife and I were watching the glorious victory of our favorite team I had (what I thought at the time was) a brilliant idea: let’s go watch the semi-final games!
Planning a Last Minute Trip
So we talked about it Sunday night and began looking at ticket prices – holy sticker shock batman! Apparently, we weren’t the only two people thinking about these games! Total ticket cost for three games of basketball: $1,500.
Now, we have to find a hotel – again sticker shock – there goes another $1,500. We decided to drive, to save some costs (also gives us some flexibility), but after food and gas our total cost is probably around $4,000 or so.
Some would call this quick, unplanned, and certainly unbudgeted for trip, excessive or irresponsible – I call it freedom.  My job before this was to build a reserve…and I did. What’s your reserve for? Emergencies and opportunities. If I have a cash reserve of $30,000 or $26,000 once this is over, is it really that big of a difference? I don’t think so.
Money’s purpose isn’t to buy things – it’s to have experiences.
This is a question I rarely am asked in client meetings, but try to ask to clients as much as possible:  What’s the purpose of money? Is it goal attainment or is to make your life better? Perhaps it’s to make another persons life better, or maybe even to help a whole bunch of people, say through an endowment or something similar.
I think it’s much simpler than that. Money equals happiness. Happiness is freedom. Freedom to do what you please with whom you please when you please. I’m not talking about being pompous, flashy, or flamboyant, but rather just having the ultimate freedom to do whatever you want.
…and after this, I’ll have the obligation to my freedom to build my reserve back up so (hopefully) I can do this again next year!
It’s nice to have the freedom to respond to situations. Not just fun ones like spur of the moment basket ball games, but also less than fun ones like surprise car repairs. When you have money, the former are achievable. And the latter, while annoying, aren’t stress provoking.
That’s definitely freedom – and spending it on something that you’re sure to enjoy and remember for a lifetime seems well worth it. I have a friend who tries to see Syracuse play in the tournament every year that they are in it (which is often) and after doing this for the better part of a decade I’m starting to wonder if she enjoys it as much as she used to.
That’s a great topic: when does “fun” become “ritual” and “really not worth it?”
You’re making this way too complicated. The purpose of money is to have a store of value. Haha just kidding, I totally understand your point: saving money and being in good financial shape allows us to have awesome experiences that we otherwise can’t have. Exactly why I’m trying hard to get my finances in order!
Have fun at the games!
For me, I’d say that the inverse is true: money equals freedom and freedom equals happiness. What good is money if you aren’t willing to use it to experience things. Luckily, for us, we have enough to experience stuff AND take care of emergencies. That is very comforting, at least to us.
I think you and OG are on the same wavelength, Greg. I’m not sure this is the inverse.
I kind of agree with you because…
…I believe that at the level of the individual money matters only to the extent to which it nourishes our lives. What does that is a very personal decision. In some cases (including us) it will be experiences (and many experiences are free). Others will have heir lives nourished by ‘things’. The important thing is to make sure that this happens!
Great point OG! I think a lot of people miss that point, that money really is to have experiences and not just to buy stuff. I think a big part of that goes back to the fact that so many do not manage their money appropriately and thus are enslaved to it and are limited by choices they have made. That freedom, once you realize it, is quite nice to have and allows you to do things you want. I have good friends going to Atlanta as well, they’re big Wichita St. fans.
The Wichita State story is incredible. I thought they might blow it down the stretch that last game!
Completely agree. I save thousands for the snowboard season every year, and this year dropped $500 on a day of guided backcountry boarding. One of the best experiences of my life, and worth every dime. After security and comfort is reached, the use of money “shifts” to experiences. I am proud to be at that point.
http://snarkfinance.com/2013/04/04/happiness-and-wealth-a-skewed-relationship/
Being in great financial shape allows for wiggle room to do what you want, or what you don’t want. I am done with debt and trying my hardest to build wealth, so for now I will skip anything above $1000 that isn’t a necessary. 🙂
F You Frugality!! HAHA…..I love this. You want an experience and you are paying for it. There is nothing wrong with that. We make money not only to retire. We make it in order to enjoy life. That is what it is for. I applaud you.
So… money is a tool? Having a ton of money is like having a bunch of tools in your garage you never use? A novel idea, for some…
Enjoy the games, I vote.
that is exactly what money is for, enjoy the game!
Money is a convenient way to store value in a highly fungible, low friction form. What you use that value for is up to you!
Enjoy the games! I hope your team wins it all for $4,000 🙂
It is all about choices! Good or bad, it is a choice! Enjoy your game.
I think you hit the nail on the head. Money to me is a tool that enables me to lead the life I want to live. That life is a life free of debt, work and other things I don’t enjoy.
Kudos for the last minute planning! Always nice to get away. There are sometimes flash deals at the last minute, too (you don’t have to book months in advance to find a steal!).
Hey, life is meant to be enjoyed, right? Have fun at the game 🙂
Without a doubt go have fun! If it’s not too late i’d check out AirBnB instead of a hotel. You could rent out an apartment or house for probably a fraction of the price of the hotel and get a more homely vibe.
Have fun and I hope your team wins!!!
Great tip on the AirBnB, Ryan. I used it for the first time this summer for a family vacation. Rather than a hotel we’re staying in a log cabin on 30 acres AND saving a bunch of money.
Thank you for this post, which caused me to do some serious thinking about how tightly I hang on to the savings in our freedom account. I think it’s great that you decided to take advantage of this opportunity and use your heard-earned money for a fun experience. Have fun and thanks for sharing.
It’s tough, isn’t it? I never know if this is the “right” opportunity or not and often end up delaying.
We did this a few years ago and ended in the states for the Elite. Then we did the same thing for the Final four in Detroit, but found a way to get passes for volunteering. Best weekend EVER.
Ha! You reminded me a a story about volunteering for the Detroit Lions game…my brother in law was “treated” to a game by my father in law and didn’t know that it meant working the concession stand.
I like reading when people actually do part with their money when they can afford it and don’t feel guilty about it. That was one of the reasons that motivating me to work so hard to achieve debt freedom. I wanted to have money in the bank to weather emergencies and also to enjoy some of my favourite activities that do cost money.
That’s why I’ve always liked OG as a financial advisor. He’s one of the few I’ve heard tell his clients, “Spend your damned money!”