a classic example here is the “extra bedroom for Grandma”—visits from Grandma are easy to imagine, but if she only comes a couple of days a year, spending tens of thousands more dollars for a house with an extra bedroom and bathroom for her is probably pretty stupid. You’d save money—and make her happier—by putting her up in the local five star hotel.
I’m going to buy a house with a room for “grandma”, and here’s why: While it might cost me less to put guests in luxury hotels, it’s going to cost me every time I have a guest over. I might be unusual here, but I know that both the cost and the slightly more difficult choice (“Should I save the money by not inviting them to stay?”) is going to make me unhappy every time I get a guest.
From a purely economical view point this line of thinking might be irrational, but I’ve found that the action or prospect of paying has a real cost in happiness, so I prefer to do pay more once than less split over many instances.
I’m going to buy a house with a room for “grandma”, and here’s why: While it might cost me less to put guests in luxury hotels, it’s going to cost me every time I have a guest over. I might be unusual here, but I know that both the cost and the slightly more difficult choice (“Should I save the money by not inviting them to stay?”) is going to make me unhappy every time I get a guest.
From a purely economical view point this line of thinking might be irrational, but I’ve found that the action or prospect of paying has a real cost in happiness, so I prefer to do pay more once than less split over many instances.