Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Breaking the Thrift Habit??
Old 08-04-2005, 08:27 PM   #1
Recycles dryer sheets
SteveL's Avatar
 
Join Date: Aug 2005
Posts: 380
Breaking the Thrift Habit??

Okay, so you save half your income for 30 years, invest it wisely, and retire with a pile. You come to the ER Forum and read about FIRE. Your draw down rate is only 2% because you have trained yourself not to eat out, not to spend money etc. etc. How do you cut loose, and spend up to your 4% limit w/o that little voice you have been hearing for the last 30 years saying "you don't need that".....
Saving is easy,,,,,spending is tough!
__________________

__________________
Retired -- 2001
SteveL is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Breaking the Thrift Habit??
Old 08-04-2005, 08:33 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,442
Re: Breaking the Thrift Habit??

Quote:
Originally Posted by SteveL
Okay, so you save half your income for 30 years, invest it wisely, and retire with a pile.* You come to the ER Forum and read about FIRE.* Your draw down rate is only 2% because you have trained yourself not to eat out, not to spend money etc. etc.* *How do you cut loose, and spend up to your 4% limit w/o that little voice you have been hearing for the last 30 years saying "you don't need that"..... *
Saving is easy,,,,,spending is tough!
Are you married?*
__________________

__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-04-2005, 09:22 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
Re: Breaking the Thrift Habit??

Set up a budget and spend up to the budget.

When you were saving you had a budget and spent under it. Then you built a budget from the ground up by each line item. When you got to the total you either liked the total or said it was too much. If too much you reviewed each line item for where your could cut.


To spend:
First step figure out in total what you want to spend then fill in the catagories and spend up to those catagories.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-04-2005, 09:52 PM   #4
Thinks s/he gets paid by the post
maddythebeagle's Avatar
 
Join Date: Jun 2005
Posts: 2,450
Re: Breaking the Thrift Habit??

Wow, thats a new one, most folks have a lifetime of over spending and consumer debt I have thought what I do and I think that I would consider to start giving some of the money away.
__________________
- Hurry! to the cliffs of insanity!
maddythebeagle is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 02:04 AM   #5
Recycles dryer sheets
 
Join Date: May 2005
Posts: 228
Re: Breaking the Thrift Habit??

No reason to break a good habit (and I'm married with two children, well one is already 21...but costs much more !)

And I still have a 15 years old car, which I did not even purchase at the time. Why change this excellent car, it still works !
Why change good habits unless you feel unhappy with these ?
But do you

Patrice.
__________________
gnoti seauton
poyet is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 05:33 AM   #6
Full time employment: Posting here.
 
Join Date: Jan 2004
Posts: 844
Re: Breaking the Thrift Habit??

Quote:
Originally Posted by SteveL
Okay, so you save half your income for 30 years, invest it wisely, and retire with a pile.* You come to the ER Forum and read about FIRE.* Your draw down rate is only 2% because you have trained yourself not to eat out, not to spend money etc. etc.* *How do you cut loose, and spend up to your 4% limit w/o that little voice you have been hearing for the last 30 years saying "you don't need that"..... *
Saving is easy,,,,,spending is tough!
When you figure out that one, let me know to...I have the same problem, and to be honest its one of the biggest negative suprises about Er'ing for me...its hard for me to spend money, and I stress about it constantly...and me with a 1.8% SWR....guess the earlier you ER, the easier it is to worry, because 40-50 years is a LONG time to ever feel completely confident about what the future holds, no matter what your spreadsheets, or firecalc say.
__________________
farmerEd is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 07:35 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
Re: Breaking the Thrift Habit??

Something about the horse you rode in on - and all that stuff.

Spending IS TOUGH - emotionally, physically, and mentally.

Especially - if you end up buying a lot of crap(house, cars, adult toys, etc) - that require care/mainetence.

In the end - who owns who - Yeah, yeah - I know they are inanimate objects. ?Are you sure

Frivolously bought two - off brand tires for my 1994 Sonoma this week $120 - instead of spending a half day at the junkyard and 'maybe spending $50' - and forgoing the adventure of how long will they last.

Just trying to let expenses drip up slowly and pretending not to notice.
__________________
unclemick is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 08:37 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Dec 2003
Posts: 1,375
Re: Breaking the Thrift Habit??

Have been viewing this board for close to two years now.

This thread is one of the most bizarre ones I've seen to date.

I remember years ago "Scrooge McDuck", Donalds Uncle, used to roll around in his room that was floor to ceiling in cash. (This was his life).

Do you guys live in a vacuum?

Rather than spend more than you are comfortable with, don't you have aging parents, adult children, neices or nephews, etc. etc. that could use a hand-up because of circumstances beyon their control. (Not everybody in this situation is there because of irresponsibility).

Well, don't want to continue, while I might be breaking even.

Jarhead
__________________
Jarhead* is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 08:50 AM   #9
Full time employment: Posting here.
shiny's Avatar
 
Join Date: Jun 2005
Posts: 673
Re: Breaking the Thrift Habit??

I don't really think it is strange at all. I know we'll have the same problem.

Since I was a child I have always been rewarded for my thriftiness and that has paid off in ER. I don't think it will be easy to just change my personality.

We do spend money, but compared to our incomes, etc. we don't spend much. I think there will always be that worry of outliving our money, etc. But... I will try to make the spending budget and actually spend it rather than seeing how much I can save of it!
__________________
I'm made of atoms, you're made of atoms, and we're all in this together. Ben Lee
shiny is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 09:22 AM   #10
Thinks s/he gets paid by the post
grumpy's Avatar
 
Join Date: Jul 2004
Posts: 1,321
Re: Breaking the Thrift Habit??

During our accumulation phase I was frugal in the sense of not spending on things we didn't need. I also was careful to find good values. That meant not buying the high-end whatever (TV, car, home, etc.) but also not just buying the cheapest model. I bought the one that gave good value for the price and I shopped for the lowest price on that model. Now in FIRE I still look for good values. But now I can find good values in the mid-range of products. They are higher quality overall but at a higher price. I still don't buy top-of-the-line of anything because they are not good values - you are paying for snob appeal.

I find that I don't have a problem spending my hard saved $'s as long as I believe I am getting good value for the price.

Grumpy
__________________
...you can check out any time you like, but you can never leave...
grumpy is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 09:27 AM   #11
Recycles dryer sheets
 
Join Date: Jan 2004
Posts: 188
Re: Breaking the Thrift Habit??

I have the same 'problem'. I watched my depression-era parents wash and reuse plastic Zip lock bags, save rubberbands from the newspaper, keep the food pantry chock full of food, freezer & fridge full at all times, plus all the other standard behaviors. It rubbed off on me more than I realized.

To me now as with them, interest is to collect not to pay. Spend money on items that appreciate rather than depreciate. Blah Blah Blah

Spending is tough even though I am well layered against most any economic forces. I know I can't line my coffin with money but old habits are hard to change. I will force myself to take a trip or two soon and perhaps this will shake me up somewhat. However, I love my ranch and the critters on it. This might boomarang on me.

I look around and I realize that I have all the material things I really want. This is not the first time in my life I have felt this way. *

This thread is long overdue. I figure that this forum should have a reeelatively high number of like minded folks living below their means.
__________________
Ol&#039; Rancher<br /><br />I wake up in the morning with nothing to do, and by the end of the day, I feel lucky if I&#039;ve gotten less than half of it done.
Ol_Rancher is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 09:44 AM   #12
Full time employment: Posting here.
 
Join Date: Oct 2002
Posts: 717
Re: Breaking the Thrift Habit??

This is one of those problems you would like to have ... similar to what do you do with the millions you win in the lottery or what do you do when you have too many customers for your new business to handle. Think I'll worry about it when I get there.
__________________
Random Reinforcement is Highly Addictive.
riskadverse is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 09:49 AM   #13
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
Re: Breaking the Thrift Habit??

I think C-T is the authority when it comes to this particular subject. He may take a break from his Glacier NP trip and post his opinion.
__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 10:03 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
Re: Breaking the Thrift Habit??

True, True - We need C-T to shake us (cheap SOB's) up.

Trouble is - I still find his Trout Bum vision the more appealing.

I just finished an hour long argument with my Mom - a Depression Era age 88 living with us - on why I need to take her to the bank and cash 30k of E bonds(1974) that don't pay interest anymore. I guess she likes to look at them.

Sigh - maybe Monday. So it goes.

BTY - in New Orleans - lack of money - never, ever - stops a party.
__________________
unclemick is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 01:11 PM   #15
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Re: Breaking the Thrift Habit??

Quote:
Originally Posted by DOG51
Are you married?
Do you have kids?

Quote:
Originally Posted by ex-Jarhead
This thread is one of the most bizarre ones I've seen to date.
Do you guys live in a vacuum?
Rather than spend more than you are comfortable with, don't you have aging parents, adult children, neices or nephews, etc. etc. that could use a hand-up because of circumstances beyon their control. (Not everybody in this situation is there because of irresponsibility).
Quote:
Originally Posted by Ol_Rancher
I have the same 'problem'. I watched my depression-era parents wash and reuse plastic Zip lock bags, save rubberbands from the newspaper, keep the food pantry chock full of food, freezer & fridge full at all times, plus all the other standard behaviors. It rubbed off on me more than I realized.

To me now as with them, interest is to collect not to pay. Spend money on items that appreciate rather than depreciate. Blah Blah Blah

Spending is tough even though I am well layered against most any economic forces. I know I can't line my coffin with money but old habits are hard to change. I will force myself to take a trip or two soon and perhaps this will shake me up somewhat. However, I love my ranch and the critters on it. This might boomarang on me.

I look around and I realize that I have all the material things I really want. This is not the first time in my life I have felt this way. *

This thread is long overdue. I figure that this forum should have a reeelatively high number of like minded folks living below their means.
I can't help but realize that we wouldn't be having this debate if we didn't have the money in the first place. Life is good.

This reminds me of Cut-Throat's other comments. I'm with you, SteveL, about the saving & spending habits, although apparently you don't cohabit with anyone willing to take care of the spending for you.

But I don't agree with "training not to eat out". Frugality is not intended to be deprivation. We eat out when we want to, but we realize there are many hidden costs in that experience... what really goes on in the kitchen of a restaurant, the high fat/carb content of the food, the ridiculous overcharging for the drinks, the hassle of getting to/from the restaurant, the service (or lack of it), and so on. I can count the number of truly awesome restaurant meals I've eaten on two hands and most of them have been awesome for the companions, not for the venue.

So eating out doesn't have a lot of value to us, especially when we were using that money to save for ER. Today our most frequent/expensive dining experiences are famly CostCo pizza on Friday nights, family/inlaw dinners at the local Chinese restaurant, Taco Bell lunches with my spouse when we're out shopping, and an occasional romantic Thai food dinner (which, I tell my spouse, is even better when it's with her).

Most of the things we would pay full retail for don't have a lot of value to us. But finding a bargain! That's another matter. Your enjoyment of the experience is amplified by the value of the great deal you're getting. Weeks later you'll reminisce about the experience and how you pulled it off, but I can't recall the exact flavor nuances of my last fiesta taco salad.

One advantage of a frugal lifestyle is that you rarely have to change it if your financial circumstances change. But it's good to indulge when you feel that you have a reason to. As Jarhead points out, it's even better to loosen up the wallet for charity or family. But it's not necessary to raise your burn rate just because you seem to have more than you need. Go for the quality, because the future may take care of the quantity for us, even if we try to hold on to it...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 01:54 PM   #16
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: Breaking the Thrift Habit??

I too grew up with parents from the "Greatest Generation". My father's family were share croppers and my mother's family lost the farm during the Depression so they did what ever they had to to survive. I guess some of that frugality crossed the placental barrier but not so much that I could not buy what I wanted (within reason). I have worked my butt off for the past 30+ years was finally able to start saving after my divorce (she was a wallet drainer). In 15 years I went from a negative networth to a very comfortable networth today.

I save 25% of my income today and yet still spend $$ to buy things that make me happy. If you deprive yourself all your life you may die before you can spend enough of it to make you happy. What is the point in starving yourself most of your life with the intent of gorging once you have "enough" to buy that dream meal you have been saving for? You could die before you get to enjoy it and that would be such a waste of life. Been there done that have the T Shirt to prove it.

Being frugal is fine but don't go crazy with it. Self denial over a long period of time creates unreasonable expectations that may never be fulfilled. Disappointment will follow as will regret when one is looking back on a life spent in excessive denial.

Adequate frugality shoudl be the goal; adequate to save for your goal but no too restrictive as to cause life to pass you by. Stop and smell the roses along the way.

Eat, drink and be merry... for tomorrow we die. But, in case you don't die tomorrow, then save for your ER but still eat and drink.

__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 02:07 PM   #17
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: Breaking the Thrift Habit??

This is a problem that I can identify with. My grandparents grew up in the Great Depression, and I think a lot of their mentality got instilled upon me. I saw how irresponsible my father was, and decided I didn't want to be end up like that. And then I went through a bad marriage that left me about $27,000 in debt. So I think it's just ingrained in my mind to not overspend, live below my means, etc.

I know some people who always have to have the latest of everything. And then when some new model or style comes out, they get it, too. They get a few minutes of flash-in-the-pan excitement, but then they'e bored with it, AND stuck with the bill! Then there are people who spend money to try and make themselves happy. I never learned that trick, thankfully.

I finally got to the point where I finally feel financially stable about 8 months ago, when I sold my condo and banked/invested the profit. If I suddenly lost my job, I could go for years without having to get another one. Or, I could take a lesser job and still get by. If the car blew up, I could buy a new one if I had to.

But since I got to this point, I really haven't changed my spending habits much. About the only real difference is that I'll buy Rolling Rock or Yuengling in the bottle instead off IceHouse or Miller Genuine Draft in the 30-pack of cans! But I still get it at the discount liquor store!

Oh, and I might eat out every once in awhile, but that usually consists of McDonald's, or maybe Wendy's or Burger King if I'm reallly feeling ritzy some night! Or maybe hitting the Chinese place across the street from work on occasion.
__________________
Andre1969 is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 02:15 PM   #18
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Breaking the Thrift Habit??

Quote:
Originally Posted by SteveL
Okay, so you save half your income for 30 years, invest it wisely, and retire with a pile.* You come to the ER Forum and read about FIRE.* Your draw down rate is only 2% because you have trained yourself not to eat out, not to spend money etc. etc.* *How do you cut loose, and spend up to your 4% limit w/o that little voice you have been hearing for the last 30 years saying "you don't need that"..... *
Saving is easy,,,,,spending is tough!
I said this http://early-retirement.org/forums/i...24638#msg24638 a few months ago about spending being tougher than saving.

Reversing your money mentality is a difficult thing to do if you are stupid.* Most people I know who work and work to save and save keep wanting to save and save even when they stop working.* They never realize what they are saving for and they never realize they will die some day with all saved and not much enjoyed.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 02:33 PM   #19
 
Posts: n/a
Re: Breaking the Thrift Habit??

I"ve experienced this problem in miniature when on vacation.* We'll be on a vacation camping, and say "Well, we really should live it up, and try to spend $1,000 in the next few days."* But we don't spend anywhere near that.

__________________
  Reply With Quote
Re: Breaking the Thrift Habit??
Old 08-05-2005, 03:10 PM   #20
Thinks s/he gets paid by the post
Jay_Gatsby's Avatar
 
Join Date: Oct 2004
Posts: 1,719
Re: Breaking the Thrift Habit??

Well, I'll jump on the bandwagon. Being FIRE-oriented, I really find it difficult to spend money without feeling guilty (read my recent threads on car repairs :). I'm coming around to the idea, however, that sometimes you really need to spend money to "buy" yourself some security, piece of mind, or even to make your life easier. Unclemick's tire purchase is a good example of this, since in many cases, you're better served in the long run to forego the "adventure" that frugality may require.

Money is a tool, and maintains that power though constant use. Money has no power without being used. Every time you spend money, you're making an "investment", with some investments being very good (i.e. those that appreciate) and some that are very bad (i.e. those that depreciate rapidly). Yet in some cases, even if you make a "bad" investment and lose your money (or the item you purchased loses its value rapidly), you still may receive a benefit from your investment in some other way. For example, you might buy your wife a new car, which we all know is a rapidly depreciating asset. What you will gain from your investment in such a depreciating asset is usually peace of mind -- both from a safety/mechanical perspective, as well as the absence of complaints from your wife about the such issues. :P
__________________

__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
Jay_Gatsby is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Kick that habit - especially you young dreamers donheff Health and Early Retirement 29 01-24-2007 04:51 PM
Killing people and breaking things. Mr._johngalt Other topics 48 11-01-2006 09:03 PM
Breaking 500 yakers Other topics 4 06-20-2006 08:25 PM
Breaking the Budget - I had to laugh at this! Cut-Throat FIRE and Money 2 12-29-2005 05:46 PM
BREAKING NEWS!!!! Dawg52 Other topics 6 10-23-2005 10:47 AM

 

 
All times are GMT -6. The time now is 12:06 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.