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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 05:24 PM   #21
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Re: Anyone else fed up of saving money for ER/FI?

I'm looking at this market correction as a buying opportunity. If it's a flat/down market for a couple of years, great! I get to buy in cheap.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 05:27 PM   #22
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Re: Anyone else fed up of saving money for ER/FI?

Andre has an interesting point. Its a interesting emotional tipping point when you realize that your monthly or annual contributions barely make a dent in your portfolio.

It can be hard to forgo that new TV, new car, etc when you can lose several times as much during a short time in your investments.

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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 05:31 PM   #23
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Re: Anyone else fed up of saving money for ER/FI?

When you put it in perspective, the market hasn't been that awful. When I got my monthly statement for May, I found I was only down around 3%, or $6000. That's not a whole lot more than what I invest per month. Sure daily losses of 2-3% hurt, but what really matters is long term performance.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 05:35 PM   #24
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by Cut-Throat
Set a budget for saving (AMount per month - that you can live with) - Once you save that amount, feel free to spend the rest.*
I've said it before, but C-Ts advice on this is what has worked well for us. *Money for retirement and other long term goals goes straight into investment accounts and whatever is left in our checking we are free to spend. *The result is that I no longer stress about splurging a little at the grocery store or treating ourselves to a nice meal out or having a soda out of the vending machine or taking a vacation. *It's very liberating.

When we came up with our retirement savings plan a few years ago we both agreed that saving more agressively was possible but not desirable. *We want some of our cookies up front, and we are not willing to spend the next 10-15 years sitting at home eating rice and beans just to shave a few years off our ER timeline.

We have no trouble affording most of what we want, its just a matter of time and budgeting and priorities. *Sure there are times when I wish we could just buy a big ticket item without having to plan and wait for it, but its not a huge deal and sometimes the wait is even good - keeps us from making silly purchases on a whim.

Definitely find balance, even if you have to cut back on savings a little. *If we were still focused on saving every cent, we would have gone nuts years ago and thoughts of ER would have fallen by the wayside.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 06:33 PM   #25
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by justin
I'm looking at this market correction as a buying opportunity. If it's a flat/down market for a couple of years, great! I get to buy in cheap.
That's an accurate assessment and you should feel good about sale prices.

At the other end of the pre-FIRE spectrum it emphasizes the importance of having a few years worth of cash socked away so that you can sit out a few rounds without tapping your treasure chest. I'd hate to have to sell stocks now for my next year's income.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 06:44 PM   #26
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by Cut-Throat
A private Jet would be nice he and very useful to explore the planet, fly fishing.
I guess fishing from a jet does give a whole new twist to "fly fishing".
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 06:45 PM   #27
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by claire
Is anyone else fed up of this?

The way ive been feeling lately is that saving money is one long compromise and im really getting fed up the mindset.

Its not really that I want to spend all my disposable income, far from it but sometimes i just think it would be nice to relax a bit and chill out when it comes to money instead of thinking i have to stick rigidly to the savings plan to acheive ER/FI. And then I look at the board and read the "hi I am" sectiion and think well whats the point anyway of saving when people are asking if 2 million is enough - i will never have that amount.

In short im fed up of constantly thinking about money and ways to save more, its not healthy i dont think .

Dont get me wrong im not interest in buying designer clothes or an expensive new car its just the little stuff really, the little stuff which would make a difference to health and temper but which really adds up.

I think it is difficult in this society when we are bombarded with the notion that spending money and buying stuff improves onself

Sorry to ramble on - anyone else feel the same?
WildCat (come back!), BMJ and I are right there with you. *I do the "pay myself first" thing, that way I can just spend the rest and enjoy a little bit.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 07:21 PM   #28
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by LOL!
Yeah, I feel the same way.* So I'm done saving money for FIRE.* I now spend what I want, when I want.* I am improving myself at the same time.*

Maybe you should be Stumbling on Happiness instead as well?
I ordered this book. A long time ago I noticed that what was supposed to bring me happiness for the most part did not, though many of these things, such as getting FI, did make me less anxious.

Aside from the birth of my two sons, the only things that I am sure has and still does bring me happiness involves my membro virile. This sounds like a joke, but it isn't. In fact, as a 65 year old man I am a bit embarrasses by this realization..

Money does buy a degree of confidence, just as size and strength bring the same to a football player or a kid on the playground.

Ha
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 07:37 PM   #29
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Re: Anyone else fed up of saving money for ER/FI?

So I guess you are still Master of your own domain Good to hear !!! Don't know what I'd do all day if it stopped working.

Quote:
Originally Posted by HaHa
Quote:
Originally Posted by LOL!
Yeah, I feel the same way.* So I'm done saving money for FIRE.* I now spend what I want, when I want.* I am improving myself at the same time.*

Maybe you should be Stumbling on Happiness instead as well?
I ordered this book. A long time ago I noticed that what was supposed to bring me happiness for the most part did not, though many of these things, such as getting FI, did make me less anxious.

Aside from the birth of my two sons, the only things that I am sure has and still does bring me happiness involves my membro virile. This sounds like a joke, but it isn't. In fact, as a 65 year old man I am a bit embarrasses by this realization..

Money does buy a degree of confidence, just as size and strength bring the same to a football player or a kid on the playground.

Ha
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 07:55 PM   #30
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Re: Anyone else fed up of saving money for ER/FI?

To the OP:

What is it that you really want ? That's the question. If you can figure that out grasshopper, then your problems are over.

My theory has always been - Buy what you want, but really want what you buy.

So if you want something go for it - that's what you are working for. Just don't get caught up in the gotta have the great car/house/exotic vacations/designer clothes etc just cause the man says that's what you should have. That stuff won't make you happy and you'll slave away for it much to your detriment.

The "Your money or Your Life" lifestyle goes along way with me.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 08:11 PM   #31
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
im fed up of constantly thinking about money and ways to save more
then by all means stop!
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 09:41 PM   #32
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by claire

I think it is difficult in this society when we are bombarded with the notion that spending money and buying stuff improves onself
It only affects you if you choose to let it.* If you really decide to march to a different drummer, then it doesn't matter.* In fact, you can quietly smile to yourself, and say "those fools, they are like sheep".

I am totally unimpressed by other people's possesions.* I look at people who buy some fancy expensive car, or house, or whatever, and they think they are so "rich" by doing so.* That just buying (or borrowing, more correctly!) that article improves them greatly.* But since I have always been a science & technology person, and an extreme D-I-Y, I long ago realized that 98% of the population didn't know how things worked, couldn't fix them, couldn't understand them.*
Just one example: When BMW's were becoming a very "in" vehicle in the 80's, I used to enjoy asking the proud BMW owner who was busy impressing others that "he was a BMW owner", a few technical questions about his car.* In no time at all, they avoided me like the plague!* Because the typical owner was all status, and was totally thrilled by a write-up in a car-nut magazine. And totally clueless.* But happy that his 3000 or 6000 mile checkup cost so much, as that showed real upper class status* :
Ahhhh, the happiest sheep are the ones that are shorn while saying they like it.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 10:13 PM   #33
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by justin
We currently save 60% of our income, or $60k/yr.
Wait?! I am in the same tax bracket and I pay $30,000 in taxes and FICA. That means you live on $10,000. ($800/mo) Wouldn't this mean that you have a paid off house and no transpertation?

Rodger
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-07-2006, 07:50 AM   #34
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Re: Anyone else fed up of saving money for ER/FI?

I just ran the number, and figure that, as of yesterday's close, I'm off about $23,750 from a peak I hit on May 9. At first glance that sounds scary. For example, that's more than I've ever paid for a car. In fact, if you subtract out the one new car I've ever owned, that's probably almost the purchase price of all the rest combined! But in reality, it's about an 8% drop.

So the way I look at it, if the market stays down, the next time a contribution gets made to my 401k or my mutual funds, I'll be buying at discounted prices. And this isn't money that I'm going to have to touch anytime soon.

Also, I keep track of two running totals. The first is just stocks, mutual funds, 401k's, IRAs, etc. That's the number where I'm down 8%. Then I keep another total that adds in savings bonds, my checking account, and my Emigrant MMA. With these factored in, I'm down about 7%.

The reason I separate these out is because I look at the stock/mutual fund/401k/IRA pile as long-term, not to be touched unless absolutely necessary. But the checking account will fluctuate, and the savings bonds will gradually go down as they hit final maturity. My Mom started taking them out for me when I was born in 1970, and I think my most recent bond is around 1994. So every few months I cash in a couple of them. Oh, and then there's that I-bond I took out last year which, in light of the recent readjustment may not have been such a good idea. : And then there's the MMA, which gets raided every once in awhile if my checking account balance gets a bit low, and which I'm also going to start depleting to pay down the HELOC now that its rate isn't quite so pretty.

So yeah, it is a bit annoying to be down $23K+ that quickly. However, looking at my little spreadsheet, I'm about where I was in February. So it's only a minor step back. Only difference is that it was a lot more exciting getting to this level back in February than it is today!
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-07-2006, 07:52 AM   #35
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Re: Anyone else fed up of saving money for ER/FI?

I invest a fixed percentage of income each month, after that my wife can spend it all. LBYM exists by default. Minimal budgeting, minimal arguements. Occasionally I sneak in a bit extra when she isn't looking.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-07-2006, 09:12 AM   #36
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by rw86347
Quote:
Originally Posted by justin
We currently save 60% of our income, or $60k/yr.
Wait?! I am in the same tax bracket and I pay $30,000 in taxes and FICA. That means you live on $10,000. ($800/mo) Wouldn't this mean that you have a paid off house and no transpertation?
I was using round numbers for the sake of simplicity. We do save ~$60k/yr, but our total income is a little higher than $100k due to a few things I make money from on the side (outside of the 9-5 job). Taxes are much smaller - around $13000-$14000/yr total including FICA. I'm a good tax planner. Not sure how much we spend, probably $30-40k/yr depending on what you consider an expenditure.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-07-2006, 11:08 AM   #37
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
And then I look at the board and read the "hi I am" sectiion and think well whats the point anyway of saving when people are asking if 2 million is enough - i will never have that amount.
You're right, you won't.* *If for no other reason, it'll be because you have a defeatist attitude.* *

Quote:
In short im fed up of constantly thinking about money and ways to save more, its not healthy i dont think .
Want to try something REAL mentally and emotionally unhealthy?* Try spending everything you make, and keep getting older and older knowing you couldnt support yourself if you couldnt w*rk.* That should really do the trick!

Quote:
* The $1M or $2M number is a bunch of crap.* You can retire on much less.* Lots of people do.
Yup, they sure do!* *I think of all the hundreds of delapidated houses i see when i go back to my rural hometown in Arkansas.* *I bet many of them dont have a fraction of that, and probably a lot of them dont w*rk either (aka retired, disabled, etc).* *Course, i know I wouldn't want to live that way!* This is definitely a case of, .. to each his own.



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Re: Anyone else fed up of saving money for ER/FI?
Old 06-07-2006, 11:49 AM   #38
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Re: Anyone else fed up of saving money for ER/FI?

Hi Claire,

It won't seem like a burden if you find the right balance. I probably save about 35% of my salary. Could I save more? Probably. But I love to travel and I spend money on vacations. I just bought new golf clubs (although I did buy good knock-offs instead of the super expensive brand-names). DBF and I go out with our friends and eat out 2 or 3 times a week. I also just bought tiles for downstairs (although we are doing the tiling ourselves).

On the flip side, I try to spend less money in areas that aren't as important to me: I bring lunch to work, my Volvo S40 was bought used, I reuse ziploc bags (what's wrong with that?), I drink water from the tap, I don't have any designer clothes, and I rarely shop. I buy things used on Ebay if I can find what I want.

Finding the balance will make it seem less like a burden - to me, the things I do are just part of how I live - I don't even give them a thought.
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-07-2006, 11:54 AM   #39
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Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by Azanon
Quote:
And then I look at the board and read the "hi I am" sectiion and think well whats the point anyway of saving when people are asking if 2 million is enough - i will never have that amount.
You're right, you won't.* *If for no other reason, it'll be because you have a defeatist attitude.* *

Quote:
In short im fed up of constantly thinking about money and ways to save more, its not healthy i dont think .
Want to try something REAL mentally and emotionally unhealthy?* Try spending everything you make, and keep getting older and older knowing you couldnt support yourself if you couldnt w*rk.* That should really do the trick!

Quote:
* The $1M or $2M number is a bunch of crap.* You can retire on much less.* Lots of people do.
Yup, they sure do!* *I think of all the hundreds of delapidated houses i see when i go back to my rural hometown in Arkansas.* *I bet many of them dont have a fraction of that, and probably a lot of them dont w*rk either (aka retired, disabled, etc).* *Course, i know I wouldn't want to live that way!* This is definitely a case of, .. to each his own.
Oh Azanon, there you go being a Sweetie--Pie again! aren't you afraid of all the flies you will attract?

Ha
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Re: Anyone else fed up of saving money for ER/FI?
Old 06-07-2006, 12:06 PM   #40
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Re: Anyone else fed up of saving money for ER/FI?

Short of winning the lotto or Dow 36000, I'll never have a million bucks, let alone two... I expect to retire around 2014, with maybe $750k and hopefully subsidized health insurance. SS will be two years away...

My folks (that's parents, to all you Northerners... :P) retired on a couple of pensions, subsidized HI, and, three years later, SS. They also had some home equity, to help make their place in FL more affordable. They lived fairly nice in retirement, including buying their cars for cash, and dealing with my mom's cancer. Granted, they didn't retire at 40, but to say one can't retire with less than a couple million is inaccurate at best...
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