I’m no different than any other American when the 4th of July rolls around. I can’t get enough fireworks! I absolutely love sitting in a lawn chair with family and friends on a warm July 4th summer night to watch America celebrate our independence.
I recently moved to a new neighborhood 3 years ago. We’ve always been out of town over the 4th until this year. Boy was I glad we stayed home this year. Come to find out my neighbor down the street puts on one of the best shows you’ve ever seen!
Fireworks are fantastic, but they can be really, really expensive. I found out that my neighbor who takes great pride in putting on a show for everyone else in the community spends more than $5,000 on his firework display! Isn’t that incredible?
Like I said, I honestly love fireworks as much as anyone. But to spend $5,000 on fireworks is utterly insane. It’s great that he does this for everyone and expects nothing in return. It’s almost charitable in a way that he does this for so many other people.
But to spend $5,000 on a firework display that last less than 60 minutes is crazy. I don’t know about you but this does not fit in my budget at all. Again, I appreciate that my neighbor does this. But I have to ask myself…how does he afford it? Can he really afford it? Who could afford to spend $5,000 on fireworks for one night of entertainment?
I have been watching my spending and on a budget for several years now and every time something like this comes up I find myself wondering, do they save for retirement? How much money do they have in savings or in an emergency fund? I know it sounds strange that I would think that way but it’s true. The more I see people spend frivolously I can’t help but wonder if they are jeopardizing their future financial independence?
If you’re up to speed on Roth IRA contribution limits, you would know that the maximum contribution for 2016 is $5,500. Most people don’t max out their Roth IRA and my neighbor basically spends this in one night on a fireworks display!
I hope all of you Millennial’s take note and don’t spend money like this. Stick to your budget and live within your means.