What do you do for "funny money"?

[FIREmenow]

So all of your "basic needs" are planned for -- including the unexpected costs of new roof, fridge, etc. They all fit perfectly in your 3-4% withdrawal scheme, etc. and you have a 99% chance of survival according to FIRECalc.

You're retired now. What do you do for "funny money"? You know, the latest tech gadget, the coolest oscillating cutoff tool, the next best 3 wood, the new iPAD 9?

• Have you already planned for these in the "new roof" type of budget? Only the years you didn't need it?
• Do you have a hobby that can supply these funds?
• Do you do what you did in your (heaven forbid) w*rking life on a short-term consulting basis?
• Do you only splurge on banner market years?
• .....or do you just do without?

Just wondering....

 

[Totoro]

Travel is/was my funny money category. Just added learning how to fly to it.

I only use extra funds for it though (income). The next 20k I earn (if/when it happens) will trigger me going to the local aviation club

 

[RunningBum]

I worked part-time, telecommuting for an extra 2-3 years to provide a buffer "just in case" and also be able to travel or buy cool stuff, within reason. I know some here want or need to pull the trigger as soon as they are FI. I had a low enough stress work environment that I did OMY for awhile before ERing. So I guess I fits your 3rd bullet the closest. I don't regret it at all. I still got out before 50.

 

[DrRoy]

I used to make a bit by buying cheap coins on Ebay and then reselling. I quit some years ago as it got too time consuming. If RE time would not be a problem, but fees are higher now so it might not still work.

 

[Fedup]

What do you do for "funny money"?

More money toward traveling. More luxurious accommodation like the Four Seasons and the like.
Edited to say, I originally misread the question, too early in the morning. But for funny money, I have a large taxable account for funny money.


Sent from my iPad using Early Retirement Forum

 

[2017ish]

We've kept working to ensure that the majority of our planned portfolio withdrawals in retirement will go to things above and beyond basic needs. Travel, good foods, and good wines are too important [for us, at least] to not include in our withdrawal planning.

 

[Sojourner]

For me, these kinds of purchases are part of my annual and ten-year budget projections. I know I'm going to want a new phone or tablet every few years, and I know I'm going to want a new laptop and a new TV and a new A/V receiver, etc., every 5-10 years, so I just put estimates for all that into my budget. And then whenever the strong urge to splurge hits me, I pretty much just do it, knowing it's accounted for in the budget. Of course, psychologically I'm a lot more inclined to splurge without as much hesitation in big "market up" years.

 

[travelover]

Sell variable annuities to friends and relatives and do telephone solicitation for a phony charity.

 

[2017ish]

Sell variable annuities to friends and relatives and do telephone solicitation for a phony charity.

Must be wanting a Bentley with the "funny money."

 

[FI by 2024]

For me, these kinds of purchases are part of my annual and ten-year budget projections. I know I'm going to want a new phone or tablet every few years, and I know I'm going to want a new laptop and a new TV and a new A/V receiver, etc., every 5-10 years, so I just put estimates for all that into my budget. And then whenever the strong urge to splurge hits me, I pretty much just do it, knowing it's accounted for in the budget. Of course, psychologically I'm a lot more inclined to splurge without as much hesitation in big "market up" years.

+1

It's just part of the budget.

 

[W2R]

I don't have a budget, but I withdraw my entire year's spending money on January 1st of each year. I know about what WR is right for me and I don't withdraw more than I would be comfortable spending. For me that has been 2%, +/- 0.5% although if needed I think 3.5% is perfectly fine for me. The spending money that I withdraw includes enough for plenty of discretionary expenses and replacement costs. My WR is based on my portfolio size on January 1st, so when the market is doing well I can withdraw more for the year; spending more in "up years" kind of takes care of itself that way.

As the year progresses, I check to see how I am doing, and try to space out my bigger discretionary expenses so that my spending evens out.

I try to buy the bigger discretionary stuff in months when I haven't had the inevitable big unexpected replacement or medical/dental expenses. So, if I just had an uninsured dental implant and just had to replace the roof or something like that, I would put off buying a new iPad for a few months.

I do not have a money making hobby, work part time, gamble, blog, or have any other unusual income sources. Although I realize that many of our members love keeping busy and pulling in a little extra income with this sort of thing, it's just not something I want to do. I'd rather just spend less if I had to.

 

[Danmar]

I just make sure there is plenty of slack in the budget for stuff like that. Every year I generally include a big ticket item like new car, or boat, or remodel, or whatever. But even in addition to that there is probably another 10% padding across several categories. Even then, we tend to over spend so I make sure the WR is conservative and I keep the cash balance pretty high. Retired 10 years.

So far just spending pensions and dividends but plan to liquidate about .5% of portfolio every few years if the market cooperates.

 

[doneat54]

9 months form FIRE today, I have just been thinking about this very thing last few days. I have a hobby in vintage cars and in 2003 started a web business/website making and restoring some parts for my preferred marque. It has always been "gravy" money, separate account and cash I could spend truly on whatever I wanted (most often overpriced vintage car parts). It fluctuates wildly, I go some months with absolutely nothing coming in, then several grand an week sometimes.

After retirement, I think I am going to open another account for "spontaneous a lavish travel". My wife an I love to travel and will budget a "typical" amount in our regular budget, but I want a separate "play money" account that I can through money from from my very dynamic hobby business if I want, windfalls, etc. Money that we can just grab for some spur of the moment travel, weekends away, etc. If it is there you go, if it isn't you don't.

 

[Moemg]

I ran an ebay business for eight years after retirement . I did it in my pajamas and on a part time basis .I sold designer dresses to 30 & 40 years old. The money went to my grandchildren . It was an easy gig but I eventually got bored and closed up shop.

 

[marko]

The house we live in has never had anyone move out in over 140 years; just passed down from one generation to the other. Tons of junk in the attic and basement.

Every now and then I'll run an ad on Craig's list and unload $500-$1000 worth of stuff that I cannot imagine anyone wanting but they do. Still have another $40K to go, but I just put it in the 'found money' fund which supplements our vacation spending.

 

[RobbieB]

This is my biggest post retirement splurge so far. Got it last summer right before the $1500 factory "incentive" expired;

I've wanted a BMW with the classic 2 cylinder opposed "boxer" engine ever since I was a kid. Patience rewarded -

 

[Sunset]

Sell variable annuities to friends and relatives and do telephone solicitation for a phony charity.

I was thinking of that, but then I realized I had a scanner and a color printer so I'm all set for money

 

[N02L84ER]

Older versions of Quicken used to output a Depreciation category in my Cash Flow report. I manually add a monthly depreciation charge in each of our Property accounts (auto, motorcycle, house, computer, goods) that tracks this. I add an Appreciation entry to show a major purchase in any of these accounts. I haven't really figured out how Quicken decides to include or exclude the Depreciation category in the reports, but it does seem to show up when I run a previous year's report, just not the current year. Ours average 15% of our "spending" when including that category. So, "funny money" is just part of our budgeting.

 

[RE2Boys]

funny money?splurge


It would be totally out of character. Long past the desire for things, still have high school boys to set an example for....settle for $100 smart phone
My "splurge" this summer is to go on as many backpacks as I can, the splurge is the miles driven. Though now that I think of it, could update my 20 year old tent that drips in rain storms.
From he who has never spent $20K on a car but was told my family contribution under FAFSA exceed the projected cost of college next year by a factor of over 3X.

 

[Walt34]

We don't really budget for off-the-wall stuff, if we both think spending is worth it, we'll do so. SS is starting later this month so we'll have some more spending opportunities than before but I don't foresee any major changes in lifestyle.

 

[Beldar]

When we did all of the "projections" and "modeling" for the financial aspect of ER, we included a monthly stipend for discretionary spending for toys. In reality, we've always alloted "play" money for things that would pop up.

If something is rather pricey we'll discuss it, but generally we have always LBYM so it really isn't a great impact from time to time.

_B

 

[RobbieB]

It is hard to splurge after a lifetime of scrimping and saving. It goes against all you have known. My wife retired at 55 and she died of Pancreatic cancer at 60. She never really got to enjoy the fruits of our labors. We didn't even know she was sick until it was too late.

This experience taught me to splurge a little. Your death might catch up with you sooner than you would like.

So that is how I got my "funny money" by scrimping and saving all my life. I'm planning to do a lot of spending and splurging before I die.

 

[frayne]

Just buy it, there is enough fudge built into the budget to allow for a minor expense here and there. Minor expense may be debatable but anything less than $10K IMHO is pretty insignificant in the overall scheme of things.

 

[daylatedollarshort]

Our retirement budget covers our lifestyle. I have some 1099 hobby income I don't include in the plan and also try to play "beat the budget" every month with freebies, rebates, discounts, contest winnings, the Reddit beer money forum, credit card bonuses and other things long those lines I can do from home without having a real job with set hours and due dates. It really adds up. Any extra cash I just save. Non-cash items like tickets, gift cards and air miles just help to lower the withdrawal rate in the retirement plan.

 

[Souschef]

Flying

I use it to pay for my flying. I fly patients for Angel Flight West, and rescue animals occasionally for Pilots & Paws.
I fly about 50 hours a year, and it costs about $6500.