What Dara is doing has actually happened in real life. There were reports that people were taking money out of their 401(k) to buy tickets for Beyoncé’s Renaissance tour.
Life is short and tomorrow is not guaranteed. We are all for spending money on experiences that make you happy, but don’t neglect your long term financial goals in the meantime. Life is about balance! Make sacrifices on things that aren’t as valuable so that you can spend on priceless experiences like this. Like Paula Pant says, you can afford anything but not EVERYTHING.
You should not pull money out of a retirement account early unless it’s a true emergency and you have no other alternatives (concert tickets don’t fall into this category!).
We made a few assumptions in this post. You might think $2,000 is ridiculous for tickets, but the price can go even way over that. We assumed Dara was 25 when she bought her concert ticket and worked for the next 35 years, experiencing a 10% rate of return.
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
