Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 10-02-2011, 01:20 AM   #21
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Quote:
Originally Posted by W2R View Post
Nords can speak for himself, but here's my take on it. Why should he spend an afternoon shopping at the mall or spending online, if he would really rather spend that time surfing? Makes sense to me, anyway.
"Pray for surf", as we used to say back in the day.
Quote:
Originally Posted by Lsbcal View Post
That would be a good reason to not spend -- too busy having fun. In our house DW would have no problem spending the surplus .
Sorry, catching up on missed posts.

We live an extraordinarily frugal lifestyle... more like Amy Dacyczyn than "Millionaire Next Door". Part of it is being dual military-- we've both spent years living under conditions that would have federal convicts rioting in protest. (When your standards are "Oboy, fresh fruit!" and "Yay, no 12-hour midwatch tonight!" then it doesn't take much spending to make you happy.) Another part of it is the things that bring us value tend to be cheap: surfboard wax, family time, bandwidth, library books, volunteering, writing. (We buy 27" CRT TVs off Craigslist. We don't own gaming machines or high-end computers or HDTV. We have standard cable and cheap DSL. Our TiVos are two generations behind the latest tech. We grudgingly own pay-as-you-go cell phones but rarely use them. Spouse bought an $80 Nook off Craigslist several months ago and hasn't even paid for a single download yet.) A final part of that is living a green/sustainable life. We actually enjoy composting, vermiposting, recycling, and reducing our consumption. It's a challenge to find a good piece of used furniture on Craigslist instead of paying retail. And either piece of furniture is far better than what we lived with in the Navy.

When we retired in 2002, our mortgage payments were 40% higher than today. All of those refinancings have really loosened up our cashflow. Spouse's parents also unexpectedly vacated our rental home in 2006 after "retiring" there in 2001, which let us jack up the rent (and catch up on long-overdue maintenance). Our ER plans didn't depend on those happy surprises.

After over nine years of ER we're beginning to think that we have "enough". What happens, though, is that we save up for projected expenses. We regularly grow a car-replacement fund. When we moved into this house 11 years ago we knew we needed to start saving for a familyroom renovation. A few years after moving in we also knew we'd need to start saving for stamped concrete over the lanai/sidewalk's bad FuturaStone. We save the income on our rental property for upgrades between tenants. We fence most of these savings off from our ER portfolio and spend them when the time is right.

2008 turned out to be a great contractor market for stamped concrete. And now that our pet bunny has passed on, we've been spending all of our familyroom renovation fund (and then some). Last month we also finally gave up on our '97 Nissan Altima and ended up replacing it with our second Prius, a 2005. So it's been a busy year, but the ER portfolio hasn't really seen much change.

So although we could scrape a few more bucks out of the bottom of the barrel with yet another mortgage refi, we think we've done enough...
__________________

__________________
*
*

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
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!

Old 10-03-2011, 11:58 AM   #22
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 51
Quote:
Originally Posted by Nords View Post
Sorry, catching up on missed posts.

We live an extraordinarily frugal lifestyle... So although we could scrape a few more bucks out of the bottom of the barrel with yet another mortgage refi, we think we've done enough...
We certainly are enjoying our fancy Playstation 3, but we enjoy the frugal lifestyle as well (cost to play 19 hours of one video game = a nite out at the movies!). So I guess we want to be like you when we grow up! ;-)

We're hoping to earn enough cash over the next year as a cushion to our projected rental income, but it really looks like a 20k investment in another property will allow us to earn it all back in a couple of years given the projected cashflow on another property, so I think we're going to do it! We are also toying with refinancing our rental mortgage (it's upside down, unfortunately, so it will require another 70k in cash to pay down) but debating if cash on hand is better than paying down the mortgage....again...rates seems to be too good to pass up! Are we crazy?

Here's what my lender is saying...

With 25% down, we would be at 4.375% with no points or if you have a house that is free and clear, you can use TD bank and get a line of credit at prime - .50% or 2.75% and only $99 in closing costs
__________________

__________________
msbearkeley is offline   Reply With Quote
Old 10-03-2011, 12:51 PM   #23
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,620
Quote:
Originally Posted by msbearkeley View Post
Are we crazy?
I think that 99% of landlords have only one exit strategy: probate.
__________________

__________________
*
*

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
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
What should we do with money we want to pay off our mortgage with? TennisFan FIRE and Money 45 07-27-2011 04:18 PM

 

 
All times are GMT -6. The time now is 07:01 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.