I don’t drink alcohol, so my analogy may fall flat in many places. But I hear people talking about how an older wine is better. Pretty much every time, right? People collect old bottles of wine to store, and never drink, right?
So I’m going to run with this analogy.
An older wine gives you more satisfaction than a newer wine. Spending older dollars gives you more satisfaction than spending brand new dollars. Maybe both are easier to swallow :)
The guy that received his paycheck last Friday, and hit the clubs Friday night…he was spending the money almost instantly. That spending doesn’t taste very good.
However, the lady that sets aside $150 for Christmas, and ends up with $1,800 of ready cash, just waiting to create some Christmas joy (that’s another post, about joy and consumption, not to be delved into here), that spending will taste great!
I haven’t yet figured out how this analogy works with overspending on a credit card. I guess it’s like you’re eating the grapes? You can’t even make the wine because you’re consuming them well before the process can even get started!
And then there’s the retired couple, that is spending dollars they’ve let “age” for 35 years. That spending must feel so good.
If you follow Rule Four, you should, on average, be spending dollars that are about 30 days old. Then add in your Rule Two funds where you’re giving dollars jobs where they won’t be used for several months, or even several years, and you’re spending starts to taste pretty good! Vacationing with aged money. I like the sound of that.