Poll: Below, Within or Beyond

[Car-Guy]

Simple question/poll (I hope) Financially speaking, do you try to live below your means, within your means or beyond your means? I suspect I already know how this will come out on this board but I'm curious.

Just vote unless you feel you want to make comments.

 

[REWahoo]

Prior to retirement - below
Once retired - within

 

[pb4uski]

I'm not sure what we try to do, but currently we probably live below our means since under most plausible scenarios there will be a nice inheritance for the kids. If we live long and do not prosper (investments results are poor) then we are (hopefully) living at or within our means.

We're retired and currently living off our taxable nestegg as pensions and SS have not yet started so it is a bit harder to judge.

And before retiring we definitely lived below our means as well as I had a good paying job that was well in excess of the cost of our lifestyle..

 

[KB]

I still live below but I'm trying hard to live a little less frugally, and live within. That might just be my 2015 goal.

 

[RE2Boys]

I still live below but I'm trying hard to live a little less frugally, and live within. That might just be my 2015 goal.

Same here. And with two boys in high school, college costs will push us to living within means or slightly higher (may have to go from 1% withdrawal rate to 5-6% for about a 5-6 year period)

 

[Jack_Pine]

As long as I have a good definition of "means" I live within it. Nothing else makes sense to me. YMMV.

 

[martyp]

I think people need to identify whether they are still w*rking or not. I think one's saving's rate and goals would be different.

I ER'd 4 years ago. I voted that I am living within my means but that, for me, means I am still saving money. I still have savings goals but, at 58 yrs old, that is because I still see a long future ahead. If I was old old and drawing down on my savings then I would be living beyond my means (sort of).

 

[MichaelB]

Prior to retirement - below
Once retired - within

+1

 

[WhoDaresWins]

In retirement I try to live within my means but I live below my means and always have. I think of money as a way to enhance my quality of life.

 

[2017ish]

Prior to retirement - below
Once retired - within

+2 (Not retired yet, but that's the plan.)

 

[nuke_diver]

I don't think I've ever lived above my means (meaning accumulating debt). I expect that even after retirement I'll still be below since I seem to be wired that way...even though the ideal plan would be to drop dead as I withdrew the last $10 from the bank account

 

[arky]

Prior to retirement - below
Once retired - within

Sums it up quite succinctly.

 

[RunningBum]

I'm thinking the OP must've just retired, with this sudden influx of new threads and polls.

 

[Pleeplus]

Below but I am still working. I would imagine that if you are still working and on this forum you would be LBYM. Just contributing to any pre-tax savings would put one in this category. Unless you are FI and enjoy working of course.


Sent from my iPhone using Early Retirement Forum

 

[sanfanciscotreat]

Does living within your means allow one to have a large debt load?

 

[Car-Guy]

I'm thinking the OP must've just retired, with this sudden influx of new threads and polls.

Yes, I did. I've only been retired about 3 years now.

I've been a lurker at this site since the 2007/2008 timeframe (I think), but only registered last year. I typically only post when the weather is crappy, or I'm not traveling, or gambling or if I'm waiting for parts on a car rebuild, etc....

 

[rodi]

This was hard for me to answer since I'm still adjusting to retirement and decumulation, vs accumulation.

Like REwahoo - prior I definitely had a goal to maximize saving and reduce spending. So I actively tried to live below my means.

I have a set buget goal for retirement. I'm on track to be within it. I'm not trying, actively, to stay under that budget (below my means). That said - since decumulation still makes me semi-nervous... I'm probably a bit tighter with the purse strings than I will be once I get the hang of withdrawing money, rather than depositing money.

 

[Senator]

I live well below my means. Probably live on 20%, or less of my total income.

In RE, I want to live in mu means a bit more by adding another $25K to the travel budget.

 

[eta2020]

Does living within your means allow one to have a large debt load?

In best of cases debt will act as leverage that magnifies gains and exaggerates losses.

Personally I don't like risks of leverage but you can have "good debt" and still live LBYM.

I am talking about small loans here ...

 

[Tadpole]

We are trying to increase our spending but it's just too dang hard.

 

[Bikerdude]

Prior to retirement - below
Once retired - within

What he said.... Don't really see the logic of LBYM in retirement.

 

[aim-high]

I try to live beyond my means (and without using my means.) :-D

 

[Spanky]

We are trying to increase our spending but it's just too dang hard.

Why? Are you worried about running out of money?

 

[Major Tom]

Financially speaking, do you try to live below your means, within your means or beyond your means?

I don't try, I actually do live below my means. Trying is for cissies

What he said.... Don't really see the logic of LBYM in retirement.

Here's my logic for living below my means in ER. I ER'ed with a slightly smaller portfolio than I would ideally have liked, at the age of 47 (15 years away from even early SS). Therefore, I have a conservative WR in order to hopefully allow my portfolio to grow a little so that I can have a higher income in the future. Everyone's situation is different. I believe my rationale is a reasonable one, given my particular situation.

 

[harley]

I live well below my means. DW lives a bit above her means. Thus we live within our means.