Author Topic: Saver's Remorse?  (Read 5517 times)

Guitarist

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Saver's Remorse?
« on: May 03, 2012, 09:34:50 AM »
http://badmoneyadvice.com/2009/03/the-tragedy-of-impulse-saving.html

I understand that there is still a life to live along the way to FI, but the comment about the guy on a death bed not wanting to have spent more time in the office bothered me. People shouldn't save just because (well, maybe that isn't such a bad thing), there should be a path they are following to reach whatever it is they want to acheive. I want to save and work now so that I can still have my health when I have the means to do all I want and still have enough money to relax at the end of life (ie, not working until I'm 90).

James

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Re: Saver's Remorse?
« Reply #1 on: May 03, 2012, 10:37:40 AM »
Exactly. 


I loved this: "In a paper that Kivetz wrote with Itamar Simonson of Stanford, test subjects were asked to choose between two possible raffle prizes, for example $100 cash or a romantic dinner for two costing $90.  Even though a winner of the money could just buy the dinner and pocket $10, many (about 24%) chose the dinner option anyway.  Why?  Because they knew that if they got the money they would just save it and then regret not going to the restaurant later on."

All it proves is that there are a lot of idiots out there...

arebelspy

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Re: Saver's Remorse?
« Reply #2 on: May 03, 2012, 11:17:51 AM »
People shouldn't save just because (well, maybe that isn't such a bad thing), there should be a path they are following to reach whatever it is they want to acheive.

Well put.

A miser loves money for the sake of money.

None of the Mustachian types I know or have talked to seem like that.

We want freedom, more family time, whatever. 

This thread has more reasons: https://forum.mrmoneymustache.com/ask-a-mustachian/so-what's-the-point/

We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
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skyrefuge

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Re: Saver's Remorse?
« Reply #3 on: May 03, 2012, 02:03:48 PM »
Holy shit.  Ignoring the pros/cons/reality of "Savers' Remorse" for now, the true (anti)Mustachian nature of this story actually has nothing to do with the particular nature of "Savers' Remorse".  The real story in my mind is why some researchers performed a study of "Savers' Remorse" in the first place.  Is it because they're concerned about maximizing the happiness of people throughout their lifetimes, and want to caution against miserliness and untargeted savings-addiction that will ultimately lead to regret later in life?

Hell no!  It's because they want to use mind tricks to sell people more crap that they don't need!

From the paper, published in the Journal of Marketing Research:
Quote
Self-control regret [aka "Savers' Remorse"] and its impact on choice provide an opportunity to promote luxuries and other indulgences more effectively. Marketers of luxuries and leisure services can prompt consumers to consider their long-term regrets, thus stimulating sales of indulgences and enhancing the postpurchase satisfaction of customers.

One of their experiments basically lays out exactly what marketers can do: on a bus ride to the mall, simply asking shoppers to consider how much/little regret they would feel in 10 years time over the purchase of an indulgent, expensive clothing item today, caused them to purchase more indulgent, expensive stuff once they reached the mall.  Success!

MMM frequently points out how powerful and effective the modern marketing machine (anti-MMM) has become, and this is a concrete example showing the R&D going on behind the scenes and the dedicated brainpower driving that industry's "success".

Parizade

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Re: Saver's Remorse?
« Reply #4 on: May 03, 2012, 07:33:22 PM »
This is what stood out for me:

Sufferers of hyperopia “deprive themselves of indulgence and instead overly focus on acquiring and consuming utilitarian necessities, acting responsibly, and doing ‘the right thing.’”

It seems to me that working for 40 years to acquire and consume a normal "responsible" retirement because it's "the right thing to do" would fit the description of hyperopia more than a mustachian life would.

A mustachian life is all about indulging your desire for more free time and fun by achieving FI as soon as possible.

Dee

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Re: Saver's Remorse?
« Reply #5 on: May 04, 2012, 05:01:43 AM »
Thanks skyrefuge for finding the goal of the research.  Freaky.

Some of the so-called regret doesn't seems realistic at all. Like whether college students regret studying or partying during spring break; right after spring break, they wish they'd studied more, a year later, a lot fewer of them think they should have studied more, and when they are 40 years old, many wish they'd partied more. Sure, it's easy to get nostalgic and see college as a time one should have enjoyed oneself more when that time is long gone... but, really, if you'd partied more, would you have gotten the job you did out of college? Would you be satisfied enough with your life to show up at your college reunion when you are 40?

I think people misapprehend their own regret, and especially, their own potential regret, as in, the people being asked how much regret/little regret they would feel in 10 years time over the purchase of an indulgent, expensive clothing item today, caused them to purchase more indulgent, expensive stuff once they reached the mall.  If it's true we tend to regret the things we didn't do more than the things we did do, in 10 years, those who did buy the indulgent clothing item are likely to regret not saving more for retirement. Those who didn't buy it, by the same token, might regret not purchasing it (though, in reality, I find it hard to believe there would actually be much regret over not buying an indulgent clothing item).

AJ

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Re: Saver's Remorse?
« Reply #6 on: May 04, 2012, 02:27:31 PM »
Some of the so-called regret doesn't seems realistic at all. Like whether college students regret studying or partying during spring break; right after spring break, they wish they'd studied more, a year later, a lot fewer of them think they should have studied more, and when they are 40 years old, many wish they'd partied more. Sure, it's easy to get nostalgic and see college as a time one should have enjoyed oneself more when that time is long gone... but, really, if you'd partied more, would you have gotten the job you did out of college? Would you be satisfied enough with your life to show up at your college reunion when you are 40?

This. Also, how about we do a study of people who flunked out of college and see if they wish they would have studied more or partied more.