Are you keeping a low profile in these difficult economic times?

[youbet]

Quote:

Originally Posted by HFWR Hey, if they'll invite me over to their McMansion and let me lounge in their pool while tooting their coke and drinking their champagne, I'll reconsider... I'm not, nor do I ever expect to be, "rich". My lbym lifestyle is an attempt to trade a j*b for freedom, which is more important to me than most material things I can think of. If I had more resources, I'd undoubtedly loosen the purse strings a bit... But I'd still rather go somewhere and/or do something than to own, say, a Rolex.

Agree with you 100%. But also feel little need to pile on folks who do it their way........ as long as "their way" doesn't interfere with "my way" to any appreciable extent.

[UncleHoney]

Never fear folks, the way I got it figured there is always someone out front that will take the hits when it comes to spending or the appearance of spending.

Last week I got an email from an ex-cowroker that is the typical paycheck to paycheck type with a mortgage, a heloc, and piles of CC bills. He's about 50, his wife is about 48 and his two kids are about 16 and 12.

Here's what he had to say;

I'm looking forward to Spring break. Michelle, Jason, Aimee and I are going to Florida and then on a 7 day cruise to the Western Caribbean. I'm spending money like it grows on trees, but the kids will be gone someday, so I might as well enjoy it now and worry about paying for it later.

[Notmuchlonger]

Quote:

Originally Posted by UncleHoney Never fear folks, the way I got it figured there is always someone out front that will take the hits when it comes to spending or the appearance of spending. Last week I got an email from an ex-cowroker that is the typical paycheck to paycheck type with a mortgage, a heloc, and piles of CC bills. He's about 50, his wife is about 48 and his two kids are about 16 and 12. Here's what he had to say; I'm looking forward to Spring break. Michelle, Jason, Aimee and I are going to Florida and then on a 7 day cruise to the Western Caribbean. I'm spending money like it grows on trees, but the kids will be gone someday, so I might as well enjoy it now and worry about paying for it later.

Haha! yeah there another trooper! Need a few more of them and its good as gold

[UncleHoney]

Quote:

Originally Posted by Notmuchlonger Haha! yeah there another trooper! Need a few more of them and its good as gold

This was from a guy that was worried about getting laid off a few years ago. On one of our lunch time walks he said, "If I lose my job we will be in deep doggie do in less than 60 days". Then he said to me, "I'll bet you could last for a year or two if you got laid off".

I kinda grinned and said we might be able to make it for about fifteen years if we are careful. I thought I was going to have to give him CPR. Medic, Medic we got a man down over here.

[NW-Bound]

We do not drive fancy cars, nor trade them in every few years. We have no fancy clothes either, because we prefer comfy clothes. However, people who know us also know that we have two houses (though each of them is just above average), retire early, and love to travel. So, of course they think we are rich!

Well, despite losing a bunch of money in the market last year, our net worth is still more than most, but do we think of ourselves as rich? No way! We would be able to spend much more (if we wanted to, that is) if we were still working full-time. But, without any pension nor health benefits, if one remembers that a $1M provides you with only $40K/year of before-tax income, that hardly qualifies as rich. One would need a portfolio of several times that to replace the dual income of a working couple.

Rich? No way! So, we do not need to intentionally keep a low profile. We have to keep our expenses down just to survive.

[FUEGO]

Quote:

Originally Posted by jug Well, I still wear torn underwear...

Well, I've done pretty well for myself, so I treat myself to some luxuries. I've started buying the premium pre-torn underwear. All the cool kids are doing it these days. It's like the jeans with pre-torn holes in the knees from the 90's.

[FUEGO]

I'm not rich by any means, but we have sort of been doing the opposite recently and living it up some, and taking a bunch of vacations. None are or have been particularly expensive but I don't think people realize how little we actually spend on these vacations. So the outward appearance is "you're going on vacation AGAIN? But, but, but you just got back?!?!". From the deeeep in debt house-underwater coworker.

I did reveal inadvertently the extent of our portfolio to a close friend and coworker who was lamenting the loss of $20,000 in his 401k. He told me he's sorry because he knows I probably lost closer to $50,000. That's when I had to break it to him that the losses were well into the hundreds of thousands unfortunately. The response was "wow that sucks". Yep. But he's the kind of guy that understands how savvy I am with money and that I save a lot by design.

[FIREd]

Quote:

Originally Posted by NW-Bound Well, despite losing a bunch of money in the market last year, our net worth is still more than most, but do we think of ourselves as rich? No way! We would be able to spend much more (if we wanted to, that is) if we were still working full-time. But, without any pension nor health benefits, if one remembers that a $1M provides you with only $40K/year of before-tax income, that hardly qualifies as rich. One would need a portfolio of several times that to replace the dual income of a working couple. Rich? No way! So, we do not need to intentionally keep a low profile. We have to keep our expenses down just to survive.

I agree, $1M is not a lot of money in the world of FIRE. But I haven't been immersed in this world long enough to have forgotten that, to most people, $1M is more money that they'll ever dream to have in their lifetime. You may not think of yourself as rich, but you better believe that if the average joe out there knew you had $1M in the bank, you'd be just another fat cat. You can rationalize it all you want, it doesn't change a thing... In the context of my question, what matters is other people's perception of your financial situation. Whether you think you are rich or not is irrelevant.

[NW-Bound]

Quote:

Originally Posted by FIREdreamer I agree, $1M is not a lot of money in the world of FIRE. ...In the context of my question, what matters is other people's perception of your financial situation. Whether you think you are rich or not is irrelevant.

Hey, that's why I hang around here with people who understand the concept of 4%SWR. Heh heh heh... And I can even brag that I still have more than $1M not counting the houses. Won't say how much more... Rich? Hey, I recently said I am back working, didn't I? I am posting this in a hotel room, away from home.

[FIREd]

Quote:

Originally Posted by NW-Bound I am posting this in a hotel room, away from home.

Glad we can keep you entertained then...

[NW-Bound]

I am not working as hard as I was on the last trip, hence was able to log in to shoot the bull. But I can never have a good night sleep while on a working trip. I tend to get up in the middle of the night sweating.

Darn, all this for a bit of money... I recently posted the song "Dust in the wind", with the lyrics "All your money won't a minute buy...".

I am telling you, I am due to go back into retirement after this trip.

[haha]

Quote:

Originally Posted by NW-Bound But I can never have a good night sleep while on a working trip. I tend to get up in the middle of the night sweating.

I think that is from those pee-stopper mattress covers.

Ha

[NW-Bound]

Darn! Why didn't I think of that

But wait! I do not suffer the same when I am on vacation!

[harley]

I'm a bit off the path here. We had always been the millionaires next door, living well under the radar. But when DW inherited 1/2 of her parent's 6000 sq ft house in Arlington VA, we sold ours to buy the other half and were house-rich. Shortly after I took the early out from Megacorp. We decided to downsize and move, but still ended up with a large home on the bay near the ocean. We also have a Mercedes station wagon we bought from the estate. So that makes it hard to live under the radar around here.

When we are back in our small townhouse in western Northern VA we are living in a neighborhood that isn't cheap, because nothing in that area is. But it's much more low key than our primary residence. We are more comfortable with that lifestyle. Back at the beach our neighbors are all either rich or living rich. We sort of feel like the Beverly Hillbillies. But it's great to have a place with plenty of room and draw for visitors. We had more last summer than we've had in the rest of our life put together. It was fun. Maybe in 10 years or so we'll downsize again and move somewhere cheaper. But we've made our decision for now, and we plan to enjoy it.

[Hal3]

I'm not taking my CLK 500 to the car wash as often.

[HFWR]

Quote:

Originally Posted by HFWR Hey, if they'll invite me over to their McMansion and let me lounge in their pool while tooting their coke and drinking their champagne, I'll reconsider...

I have to apologize for this inaccurate stereotyping of DINKs. Everyone knows that DINKs drink single-malt scotch...

[tryan]

The last 2 years I posted a flyer in the teachers break room at the school "Lake House Vacation Rental" ... this brought a few comments to DW like "your independently wealthy" blah, blah, blah. So we'll skip the flyer this year; also never got any hits so that makes it easy.

[Rustic23]

In the military everyone knew what everyone else made. Heck they published it in the paper. Your landlord knew when you got a raise! So it did not take much to know that the guy that drove the corvette and lived in an upscale neighborhood either was not lbym or had other income from somewhere. No one discussed finance because there was no need to.

Transition into the private sector was touchy as everyone wanted to keep their salary secret.

[ziggy29]

Quote:

Originally Posted by Rustic23 Transition into the private sector was touchy as everyone wanted to keep their salary secret.

It's not just that private sector employees *wanted* to keep their salary secret, though I'm sure some did. Most private sector employers generally forbid employees from discussing salary, with disciplinary action up to and including termination for those who don't comply.

[tryan]

Yeah, my mega corp would even fib (lower) about the average employee raise so they could rob peter to pay paul.