Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 12:27 PM   #1
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 91
Anyone else fed up of saving money for ER/FI?

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?
__________________

__________________
claire 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: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 12:28 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Re: Anyone else fed up of saving money for ER/FI?

Yeah, I got to that point about 3 years ago. Now I save what I will and I don't worry abut a few thousand bucks either way.
__________________

__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 12:42 PM   #3
Dryer sheet aficionado
 
Join Date: Jun 2006
Posts: 25
Re: Anyone else fed up of saving money for ER/FI?

Reminds me of the old saying "Live for today but plan for tomorrow" I always try and remind my self that life is short and there are more important things in life than money.
__________________
MonarchDon is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 12:45 PM   #4
Dryer sheet wannabe
 
Join Date: Feb 2006
Posts: 19
Re: Anyone else fed up of saving money for ER/FI?

Nice post. A few things to think about:

* The $1M or $2M number is a bunch of crap. You can retire on much less. Lots of people do.
* It's less motivating to sock away money early when expected returns are 6% than when they're 16%.
* ER doesn't mean sitting like a blob in front of the tube. It can mean doing some part time work. For many the goal of ER is to get out from the spiritual rot of 50 hours weeks browning one's nose.
* It's easy for those making $80K and above to be high-and-mighty about saving - they've got it. If you're pulling in $15/hr, it's all pretty hollow.
* Postponed happiness is a disease. Life is right now. I'd hate to think I traded my 20s and 30s for $100K. Those decades are worth more than that.

I'm the same way - obsessing about savings, etc. About a year ago, I said "heck with it", upgraded my apartment, eat out more, etc. I'm reducing my savings rate by about 25% in exchange for a better life. It's a good deal all around.

It's important to remember value. A cheap meal eaten with good company is priceless. An expensive meal eaten with poor company only gives indigestion.

Jon
__________________
PortlandDiehard is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 12:53 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Anyone else fed up of saving money for ER/FI?

I look at it this way - let's say me and DW are both busy young professionals earning around $100k total. We currently save 60% of our income, or $60k/yr. What happens if we reduce the savings rate just a little to 56%? That gives us $4000 of extra money to indulge ourselves, while only marginally reducing our savings rate. It may add an extra few months or a year to our FIRE date, but who cares if the $4000/yr dramatically improves quality of life for the intervening years prior to FIRE?

I'd rather have 11 years working and enjoying myself (to the extent possible) than 10 years of painful scrimping and saving just to ER a year earlier.

I have to constantly remind myself of that, like I did yesterday when my similarly positioned coworker (with respect to earnings) was complaining about her cheap fiance who rinses and reuses ziplock bags. : There's a line between frugal/value conscious consumer and crazy. Rinsing out ziplock bags is on the crazy side of that line IMHO.

__________________
justin is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 01:09 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,384
Re: Anyone else fed up of saving money for ER/FI?

Truthfully, it may be that many people who feel they saved their way to a very early retirement in reality just had a lucky ride on the Sotck Market Express.

To me, other than gifted and perhaps lucky entrepreneurship, probably the easiest route to ER, by far, is a good government job. The steadiness of it counts, as does the defined and COLA'd pension.

As for living now or living later, I would happily give up retirement to return to the non-stop party of my 20s. It didn't matter that I was working, what mattered was that I was having a lot of fun and life-experiences.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 01:11 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Apr 2006
Posts: 1,487
Re: Anyone else fed up of saving money for ER/FI?

Quote:
saving money is one long compromise
as is spending money
__________________
d is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 01:24 PM   #8
Recycles dryer sheets
 
Join Date: Feb 2006
Posts: 403
Re: Anyone else fed up of saving money for ER/FI?

When I buy a stock I feel like I've made a purchase... same as a shirt or a new tie or a DVD... same chemicals released in the brain... but only when I pick out an individual stock or bond, not if I sink the money into an index fund. Sometimes I end up thinking "man I have spent a lot of money this week" just from that.
__________________
macdaddy is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 01:25 PM   #9
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,971
Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by PortlandDiehard
Nice post.* A few things to think about:

* The $1M or $2M number is a bunch of crap.* You can retire on much less.* Lots of people do.
* It's less motivating to sock away money early when expected returns are 6% than when they're 16%.
* ER doesn't mean sitting like a blob in front of the tube.* It can mean doing some part time work.* For many the goal of ER is to get out from the spiritual rot of 50 hours weeks browning one's nose.
* It's easy for those making $80K and above to be high-and-mighty about saving - they've got it.* If you're pulling in $15/hr, it's all pretty hollow.
* Postponed happiness is a disease.* Life is right now.* I'd hate to think I traded my 20s and 30s for $100K.* Those decades are worth more than that.

I'm the same way - obsessing about savings, etc.* About a year ago, I said "heck with it", upgraded my apartment, eat out more, etc.* I'm reducing my savings rate by about 25% in exchange for a better life.* It's a good deal all around.

It's important to remember value.* A cheap meal eaten with good company is priceless.* An expensive meal eaten with poor company only gives indigestion.

Jon
I make 15.xx/hr and I still max out my 401k and roth ira. It's not whether you make $100,000 or $40,000/yr, it's whether you're willing to LBYM. If you're not willing to somewhat sacrifice today for tommorow have fun working into your sixties or beyond but I gladly give up a little today to not have to work into my sixties...or maybe even fifties. You don't have to make six figues to do it. I'll never make more than 50-55K in today's dollars and i'll still be done by mid fifties or earlier.
__________________
aaronc879 is online now   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 01:33 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
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.
...
Sorry to ramble on - anyone else feel the same?
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?

http://www.powells.com/biblio/hardco...00042666:17.46
__________________
LOL! is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 01:48 PM   #11
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by claire
...In short im fed up of constantly thinking about money and ways to save more, its not healthy i dont think...
There are some people who save too much without enjoying life as it comes.

There are some people who spend too much without thinking of the future.

If you can find your sweet spot in between those two, you will find happiness.
__________________
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: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 02:10 PM   #12
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by claire
Is anyone else fed up of this?
A great and honest post. I'm nearing FIRE so am closer to the payoff but have felt what you feel.

It's a hard call to make. I think several things can help:

* automate it as much as possible so you don't have to wince every time you set aside $$

* at the same time, automate a small carve-out for play money, then enjoy it once in a while

* there are so many variables in your financial future when you are young that getting off track on your savings once in a while by a modest or even immodest amount is no big deal. Just don't let it get wildly out of control

* as your income improves, don't save the entire increase, but rather just a portion of it; that way you can enjoy the raises as well as set aside more

* repeat ad nauseum how much a dollar saved now will be worth in 30 years.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 02:18 PM   #13
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Re: Anyone else fed up of saving money for ER/FI?

You have to strike a balance.

A couple months ago I started a thread about a friends wedding. My friend had decided to get married at a 5 star resort on an expensive tropical island.

Considering how carefully my wife and I plan our travel to save $$$ it was so strange to be spending so much for a 3 day trip. (it will cost me over $500 a day) Brewer, CFB, and Nords convinced me that travel is almost always worth it and I was foolish to think of not attending a friends wedding.

Well, I plunked down my mastercard and said what the hell, why not? It was hard to splurge on that while at the same time telling my wife to cut back in other areas. But the funny thing was that we had a market hiccup not long after that and I could see my portfolio "lost" several times what the trip costs me. Now that it's only a couple weeks away, I couldn't imagine missing it.

Life is short and can end very quickly, so it pays to learn to balance current desires with future desires.



__________________
saluki9 is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 03:06 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: Anyone else fed up of saving money for ER/FI?

I've learned to start distancing myself emotionally from the swings of the stock market, and the resulting flucutations that it causes on my portfolio. I used to get really excited when my portfolio would hit a new high, and then get kind of saddened when it would slump.

I'll admit, I still get excited when it hits a new high, but the slumps don't bother me nearly so much. For example, with this latest downturn, I'm probably off at least $20,000 from a new high I hit about a month ago. But I'm not worried about it. No, really I'm not.

Now, as for the "finer things in life", well I'm actually somewhat of a minimalist type of person. I'm not going to deprive myself to the point of starvation, or put off fixing an important repair on the house, but I'm not going to spend money on something just to make myself feel better. Sometimes that actually has an opposite effect on me, because then I feel like I wasted money on something I really didn't need. For instance, expensive food, wine, etc is often lost on me, where something that's less expensive will do just fine.

Sometimes I will fret a bit about a new purchase, such as the $255 monitor I recently bought, or the $188 air conditioner. But instead of just flat-out putting off a needed purchase (the existing monitor was on its last legs and the a/c I was replacing was built by Chrysler, which probably dates it to the late 70's) and suffering, I'll at least make the purchase, feel a bit of a flinch, but then not look back.

Basically, like others have said, it's all about balance. That perfect balance will vary from person to person, though.
__________________
Andre1969 is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 03:07 PM   #15
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,094
Re: Anyone else fed up of saving money for ER/FI?

Quote:
Originally Posted by Cut-Throat
So It's all about balance.
claire, you're getting some good advice about balance.

A friend of mine tells the story of walking down the street one afternoon and seeing a little shop entrance that said “Fortune Teller”. He walked in and a lady was sitting at a small table, laughing as she gazed into her crystal ball.

He walked over to her and slapped her face. Shocked, she shouted at him, “Why did you do that!!?"

Of course his response was, “I’ve always heard you were supposed to strike a happy medium.”

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 04:11 PM   #16
Thinks s/he gets paid by the post
 
Join Date: Feb 2003
Location: Mesa
Posts: 3,588
Re: Anyone else fed up of saving money for ER/FI?

Being frugal isn’t about sacrifice. It’s about getting as much as you can with as little money as possible. Frugality is about understanding the value proposition in every purchase and making the right deals to guarantee your satisfaction – both now and in the future. It’s about maintaining your quality of life while maximizing the value gained from money you spend. The value proposition the frugal consumer considers asks both 1) “What do I get if I spend this money right now?” and 2) “What do I give up in the future if I spend this money right now?” If you have any long-term goals or large ticket item dreams, then foregoing the immediate gratification will sometimes bring you the greatest value. Sometimes that frivolous, impulse purchase will.
__________________
sgeeeee is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 04:18 PM   #17
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 54
Re: Anyone else fed up of saving money for ER/FI?

Ah yes, the balance issue.

I try to look at things this way. *I work damn hard for my money so I'm going to be careful how I spend it. *I want to FIRE by my 45th birthday, but I just bought a house that will more than likely extend that date by a few years. *Why? *I'm a home body that likes to fix things up. *My new house will be my entertainment and enjoyment for the next decade and will house my growing family for years perfectly.

So I might FIRE a bit later, but then again I might sell it for a huge profit and FIRE earlier than that. *Planning for the future is hard, because we save and hope, but no one can predict everything for the next 17 years. *You might get lucky and you might not. *Enjoy the ride and remember its the jourany that matters more then when you get to where your going.

CF
__________________
Warming up to FIRE while trying to avoid the cold!
Canadian FIRE is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 05:00 PM   #18
Recycles dryer sheets
VoyT's Avatar
 
Join Date: Feb 2005
Posts: 445
Re: Anyone else fed up of saving money for ER/FI?

Is there something specific going on, or are you just fed up with the general process?

__________________
"Coffee: the finest organic suspension ever devised." -- Kathryn Janeway
VoyT is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 05:08 PM   #19
Thinks s/he gets paid by the post
SteveR's Avatar
 
Join Date: Jul 2005
Posts: 2,803
Re: Anyone else fed up of saving money for ER/FI?

Spend what you need to live on in the manner you can accept as comfortable but save some percent of your income for your future. How much of each is up to you. Income is relative to your wants and needs. I agree that making $15/hour is different from $150/hour. The difference is in what you can save vs spend over your accumulation period. What is also true though is that the guy making $15/hr can save the same percentage of his income as the other guy; maybe more when you figure in taxes. The total amount will be different for sure but you can't compare these two incomes and the standard of living they can support. You can compare relative percentages of income saved and invested. The market does not care if you make $15/hr of $150/hr. You both have an equal chance to gain or lose your investment $$.

You're right. You can retire on less than $1-2 million. It all come down to how much you want to spend the rest of your life.
__________________
Work? I don't have time to work....I'm retired.
SteveR is offline   Reply With Quote
Re: Anyone else fed up of saving money for ER/FI?
Old 06-06-2006, 05:22 PM   #20
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 2,056
Re: Anyone else fed up of saving money for ER/FI?

Is there something specific going on, or are you just fed up with the general process?

I wonder if this nasty little thing the stock market has been doing lately might be one source of discouragement? When the times are good, I know it gets exciting watching your nest egg get closer and closer to your goal. But what the stock market giveth, the stock market can taketh away. It can get discouraging to watch your total go down, only to invest more, and see it go down again. And again.

I went through a bleak period myself from about May of 2001 to maybe October of 2002. Even though the tech bubble started to pop in the summer of 2000, I was still investing enough into other funds, and my total portfolio was small enough that I was able to keep pushing it to new highs. I peaked out in October of 2000, and then things started to plummet soon thereafter. Then in early 2001 I invested about $10K more, and things started to come back up, so for May I hit a new high. But that summer it kept eroding, then the 9/11 tragedy hit, and it kept dropping from there. That was a really nervous time for me, and I kept wondering if I should keep investing or not. In the end, I'm glad I did though.

Who knows? We might be going into another bleak period, and if your young, a downturn of a year or more can seem like an eternity. Well, if you're older and lose alot of money in the downturn, I guess it can seem like one, too!
__________________

__________________
Andre1969 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
Money saving tips firewhen FIRE and Money 9 04-08-2007 10:31 PM
final mix from money magazine makeover mathjak107 FIRE and Money 9 03-12-2006 12:58 PM
Money Article about asset allocation tlg501 FIRE and Money 7 02-27-2006 10:44 AM
Money Saving Sites terry1156 Other topics 8 02-11-2005 08:09 AM

 

 
All times are GMT -6. The time now is 10:37 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.