Started from scratch and hit $1.5 million by 32 – how do I balance splurges and staying grounded?

You can amass a high net worth in a decade if you remain financially disciplined and pursue high-income careers. One Redditor is in their early 30s and has a net worth above $1 million. The individual recently posted in the Fat FIRE Reddit community, seeking to find other ambitious employees who are in their 30s and have net worths above $1 million.

The Redditor proceeded to ask the community a few questions, such as how they balance saving money with splurging. It’s a delicate balance, as saving money requires putting unnecessary spending on the sidelines. However, people occasionally want to treat themselves, and it can provide extra motivation to keep going. The post got plenty of comments, and I’ll share some of them along with some of my thoughts as well.

Focus on Building

One commenter has a $2 million net worth and two children. The commenter and his wife are considering a third child and remain focused on building wealth. He said that he rarely splurges, and that is a great mentality at this stage. The commenter has a young family, and it’s more important to support them than it is to spend money frivolously.

The fact that the Redditor has saved so much money is one of the main reasons he can even consider having a third child. Saving more money gives you more options. You can splurge more in retirement after raising the kids.

Think in Percentages

One commenter earns $190k per year and has a $1.5 million net worth due to buying crypto in 2024 and taking on risky wallstreetbets options that worked out. He and his wife plan to have 3-4 children. He liquidated a small amount of his holdings this year for a luxury pickup truck, fancy watch, sailboat, and a few items for his wife.

He mentioned that this type of splurging was a one-time thing. It reflects the broader pattern of high earners who save a lot of money tend to resist splurging as much as possible. You don’t have to spend money just for the sake of it. If you live like that, the few splurges you go on will be more meaningful.

Long-Term Splurge Goals

You don’t have to splurge right now. One commenter mentioned a long-term splurge goal. He is a 31-year-old who is married with young kids. He recently bought a Ford Explorer for $40k and invested in a home remodel for the growing family.

However, the commenter also mentioned buying a Lake House in the next 5-10 years. This long-term splurge goal is quite meaningful. The family will likely use the lake house often in the summer, and it’s an asset that can gain value over time. Furthermore, a long-term splurge goal like this one makes it easier to hold off on impulsive spending.

Do You Have to Worry About the Price?

One commenter said that he is in the majority since he doesn’t have to worry about prices when splurging. Getting in this position requires a high net worth, a solid income, and financial discipline. If you don’t splurge too often, you will feel more comfortable about going on a vacation, regardless of the price.

Getting yourself in this position is ideal, and it can take a lot of years of financial discipline to reach that point. If you’re worried about the price, it may make sense to delay the purchase or cut down on other items in your budget. However, if you don’t splurge too often, price becomes less of an issue.