Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Still can't spend even though FI
Old 10-27-2007, 09:53 PM   #1
Recycles dryer sheets
 
Join Date: May 2007
Posts: 213
Still can't spend even though FI

Does anyone else have this problem?

Scenario is I retired age 52. DH is working final two years to get health insurance, hoping for an early out opportunity. Before I got out, we had enough money per firecalc, no debt and a life plan. This past year since I have not been working savings have done very well thanks to asset allocation,minimal fees and prudent investment choices, as well as continuing to sock part of our one salary away. I would prefer DH get out of the workforce, however sometimes you have to do what you have to do. We have independent children. If we have leftover money when we leave this earth that 's OK, but I am not planning our life to leave a big inheritance.

The weird thing is that we really have a hard time spending money. Our circumstances with DH working beyond the FI point and our investments doing well is we could have some good splurges, but for some reason we just cannot do so besides some great vacations. We do focus on healthy foods and lifestyle, and don't scrimp in the grocery store or in the gym.

Has anyone been able to change from the cheapo mindset and loosened the purse strings, at least a little ? How did you do it? Do you have any regrets?
__________________

__________________
52andout 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 10-27-2007, 10:05 PM   #2
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,934
I am not retired yet, but will have considerably more money to spend than what I am spending now. I think it is very likely that I will not know how to spend more, since I have really never spent more than I am spending now.

I am trying hard to think of ways to potentially spend more. So far, I am thinking of upgrading my cable TV package. I am sure that eventually other ideas may come up.
__________________

__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is online now   Reply With Quote
Old 10-27-2007, 10:10 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Worrying about not spending money can be almost as troublesome as worrying about not having money to spend.

If your thrifty ways aren't causing any regrets, don't worry about it. Freedom is the biggest benefit of FI. And freedom includes doing what you want, even if a lot of those things don't cost very much.

Enjoy your ER......and maybe spend a few bux on some surprise treats for hubby, the working stiff!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 10-27-2007, 11:40 PM   #4
Recycles dryer sheets
 
Join Date: Oct 2007
Posts: 156
( Quote)
If your thrifty ways aren't causing any regrets, don't worry about it. Freedom is the biggest benefit of FI. And freedom includes doing what you want, even if a lot of those things don't cost very much.

This is a big problem for many that retire to foreign places a few years before they should of stopped working. They are a slave to money for years to come. Every aspect of their life is how much they spend or can spend. Going back home to a somewhat normal retirement is mostly impossible for them.
__________________
wcv56 is offline   Reply With Quote
Old 10-27-2007, 11:46 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2006
Posts: 11,019
I'm having a hard time spending since I realized FI and RE were on the cards. Now that I know RE is possible, I don't want to screw up!
__________________
Meadbh is offline   Reply With Quote
Old 10-28-2007, 01:48 AM   #6
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,619
Quote:
Originally Posted by 52andout View Post
Does anyone else have this problem?
... but for some reason we just cannot do so besides some great vacations. We do focus on healthy foods and lifestyle, and don't scrimp in the grocery store or in the gym.
Has anyone been able to change from the cheapo mindset and loosened the purse strings, at least a little ? How did you do it? Do you have any regrets?
So you're only spending on the things that bring you value? Sounds like it won't be much of a problem.

The longer you're in ER, the more comfortable you'll get with your spending. You'll monitor a month's (or a year's) spending and realize that you're comfortably within the 3-5% range (whatever you've decided is your comfort zone). Some days the spending flies out the door, other times it just piles up like green waste.

You'll need to buy something and you'll realize that you've already replaced it twice this decade. You'll decide to spend up one or two levels in the hopes of getting something that will last a couple decades. Or you'll realize that you really really enjoy a certain activity (like travel or martial arts or cooking) and you'll dedicate a larger chunk of budget to it. Or you'll ride in a friend's new car and think to yourself "Self, I gotta git me one o' them."

You could start small... give at least $5 to every kid who comes by your door selling something. Donate $20 or $100 to a local charity that you know & trust. Watch an HGTV show like "Design on a Dime" and spend at least $100 fixing up something in your house.

Give it time. In a year or two you'll be spending your money on the things that deliver value to you, and staying cheap on the things that don't.
__________________
*
*

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
Old 10-28-2007, 02:57 AM   #7
Full time employment: Posting here.
old woman's Avatar
 
Join Date: Dec 2005
Posts: 551
I haven't retired yet but I love watching my nest egg grow and know I won't want to see it grow slower.
I might buy the next house for cash so I have no mortgage so my monthly expenses are tiny then I will know even if I blow my entire life savings I could live on SS if I had to.
__________________
old woman is offline   Reply With Quote
Old 10-28-2007, 03:49 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
I think it is natural to try to conserve. Especially when one ERs.

We are in the same situation, DW just ERd. I make more than we have ever spent in a year. So we are still saving. But we are budgeting to spend my salary yearly in ER.

I intend to spend it. We intend to travel, that will take a healthy chuck. While we will economize when we travel to a certain degree, we probably will not be traveling like back packers at 19 or 20 years of age. Nothing wrong with that mind you... just not our cup of tea. Or I should say not DW cup of tea. And as all the guys here know... she is the real boss.


It would be a real bummer to find out that I am in such a rut that I have more than I am willing to spend... that would mean that I am w*rking for nothing.
__________________
chinaco is offline   Reply With Quote
Old 10-28-2007, 04:19 AM   #9
Recycles dryer sheets
 
Join Date: Nov 2006
Posts: 93
I get so much enjoyment from finding a great bargain that it would be difficult to change to a higher priced lifestyle. In fact, we are hoping to do more shopping at garage sales and thrift stores when we retire for the hunt. Found two velour new pantsuits for $2 each this summer and have worn each several times already.

But, we have upped our travel considerably and travel first or business class on vacation and rent a larger car. Still use Elderhostel for all inclusive educational trips but the travel too the locations is at higher cost. When we cruise, we get a balcony but we still deal with a discount consolidator.

Buy better food especially cheeses but still enjoy the cheaper wines. So it all is what specific things give you the most pleasure. For me it is not diamonds, although I like some of the jewelry worn by others. For me it is not the Prius but maybe a step up Civic.
__________________
sweetana3 is offline   Reply With Quote
Old 10-28-2007, 08:37 AM   #10
Thinks s/he gets paid by the post
Spanky's Avatar
 
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,046
Quote:
Has anyone been able to change from the cheapo mindset and loosened the purse strings, at least a little ? How did you do it?
We have not retired yet but mostly continue to be conservative in our spending. We may spend on travel, however.

One of our retired friends have been spending more than they did before retirement. They recently bought a brand new SUV and a Toyota Athlon. They appears happy.
__________________
Spanky is offline   Reply With Quote
Old 10-28-2007, 09:00 AM   #11
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
A couple of thoughts:

* Being "too cheap" is better than being "too extravagant" in retirement, at least if all legitimate needs are being met;

* I don't see this as a big problem unless the two of you disagree on how much to loosen the pursestrings.

I think it's more natural to be "tight" with your money in the first few months or even years of retirement until you get used to the changes in cash flow. Once you get used to changes in cash flow, you may have a better idea of whether or not certain "splurges" will fit in the budget.

If not spending even for stuff your cash flow can easily afford becomes an obsession that doesn't resolve itself over time, then it could be another story -- especially if the two of you are in conflict about it.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 10-28-2007, 09:04 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,440
I've only been retired 7 months so not a good one to respond to your question. I did buy a new golf cart and a new set of irons when I retired but that was from money given to me to be used for that purpose. Haven't been on any long trips yet but plan to do so next year.

I guess it will be hard to loosen up the wallet as I am just 53. The financial plan looks fine for the long haul but the fear of screwing up is there. Time will tell.
__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 10-28-2007, 09:36 AM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,036
Good subject ,
I'm pretty thrifty when at home but when traveling I open the purse strings wider . I have everything I need or want so why spend more just because I can ?
__________________
Moemg is offline   Reply With Quote
Consider 'spending' on investments
Old 10-28-2007, 10:32 AM   #14
Recycles dryer sheets
aenlighten's Avatar
 
Join Date: Apr 2007
Posts: 275
Consider 'spending' on investments

that you can appreciate. Antiques? Classic cars? Home improvements? Second home? Business opportunity? Something that throws off dividends that you can appreciate and something you can expect to appreciate as well.
__________________
aenlighten is offline   Reply With Quote
Old 10-28-2007, 10:58 AM   #15
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
I wonder if all this is related to stuck spending habits, or to fear of the black swan.

In my mind, we could probably FIRE and maintain a lifestyle close to what we have now (all this being a recent milestone) while working half-time. When I sit down to plan, I come up with a million "what ifs." Suppose inflation roars. Suppose the market hit s big, long, miserable decline.

My philosophy is that planning for the worst case scenario is very inefficient, resource-intensive, and probably does more harm than good. But a little cushion to cover the more likely curve balls would be a good thing.

Back to the OP, though, given that cushion I don't think I would have any trouble spending every penny within my 4.25% SWR.
__________________
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
Old 10-28-2007, 11:26 AM   #16
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 944
I have been free for 17 months now and find that spending does not bother me like it did shortly after pulling the plug. At first I hated the idea of my portfolio shrinking instead of expanding as it had for the last couple decades. It is still expanding and I have been tracking our family spending carefully - we are well within the spending budjet that I had planned. I still shop for value, but- do not worry about spending. Now if the market tanks......I may tighten up and worry again, but I am comfortable with my allocation and am enjoying the ride.

PS. Time seems to go faster now than when I was working - that surprised me!
__________________
Freed at 49. You only live once - live it
Donzo is offline   Reply With Quote
Old 10-28-2007, 11:44 AM   #17
Thinks s/he gets paid by the post
lazygood4nothinbum's Avatar
 
Join Date: Feb 2006
Posts: 3,895
this january a friend is coming down from new jersey to spend a few weeks with me. while here, he wants me to fly with him to spend a week at the home of a friend of ours in southern california. i guess i was bemoaning a bit too much the extra expense that wasn't in my plan since i planned only travel in summers as winter here is so nice.

anyway, i just found out from my california friend that my new jersey friend was planning to pay for half of my airfare out to california just to get me out there. so now i guess i'll have to pay for the entire $300 ticket. my calif friend has wanted me to visit for some time now. i'll get there but it seems my reputation preceded me.
__________________
"off with their heads"~~dr. joseph-ignace guillotin

"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
lazygood4nothinbum is offline   Reply With Quote
Old 10-28-2007, 11:45 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
HFWR's Avatar
 
Join Date: May 2005
Location: Lawn chair in Texas
Posts: 12,964
I would humbly submit that you are not financially "independent" if you are having this problem...
__________________
Have Funds, Will Retire

...not doing anything of true substance...
HFWR is offline   Reply With Quote
Old 10-28-2007, 12:02 PM   #19
Thinks s/he gets paid by the post
lazygood4nothinbum's Avatar
 
Join Date: Feb 2006
Posts: 3,895
nothing to be humble about. never suggested i was. i preferred the life with parents and allowance. i would settle for a rich & loyal boyfriend. i never liked working, i never liked handling money. i just want to play all day. i must be peter pan.
__________________
"off with their heads"~~dr. joseph-ignace guillotin

"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
lazygood4nothinbum is offline   Reply With Quote
Old 10-28-2007, 12:06 PM   #20
Thinks s/he gets paid by the post
twaddle's Avatar
 
Join Date: Jun 2006
Posts: 1,378
Quote:
Originally Posted by 52andout View Post
Has anyone been able to change from the cheapo mindset and loosened the purse strings, at least a little ? How did you do it?
Why don't you tell us how much is in your "splurge" budget, and we'll give you ideas on how to spend it.

I find that home remodeling is the best way to create a spending black hole, if that's what you're looking for.
__________________

__________________
twaddle 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
Elder spend down FinallyRetired Other topics 14 08-31-2007 03:22 PM
Two people....what do you spend? tkp FIRE and Money 62 03-29-2007 11:30 PM
How much did you spend on..... Donzo Other topics 54 02-27-2007 02:02 PM
What % do you spend in retirement? JustCurious Life after FIRE 12 01-18-2007 08:33 AM
How much did you spend in 2006? Nords FIRE and Money 141 01-10-2007 04:01 PM

 

 
All times are GMT -6. The time now is 10:54 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.