Hello, my 2nd post here, on your way to early retirement, do you 'live' your..

[Meadbh]

You have received a lot of good advice. Basically, it's up to you. I suggest you read "The Wealthy Barber" by David Chilton for more on the Pay Yourself First strategy.

 

[chris2008]

We also implemented the strategy to save at least half of every salary increase, bonus and extra income.
It does not hurt in everyday life, allows us to have some extras and have benefits from each increase directly but increases savings significantly over time.

 

[Ronstar]

I feel that we could have retired by now, so I'm only saving 10-15% gross and spending the rest on travel / toys / home improvement. I'm trying to get all big spending done before full retirement in 3 years.

 

[dorikin_86]

Tempesta,

You're a little further along the path that I am, but here's what worked for me to help curb expenses and work more towards FI:

Keep yourself poor by 'hiding' your money in investments, or mortgage payments or a separate bank account.

Exactly what I do =)

Makes me feel horrible at times but I know the money is there when I retire!

 

[P.S.]

. Often I was a victim of impulse buy/spending, like the gadgets or weekend night-outs. Just last weekend, I had no plan to go out, but the next thing I knew, I was at the bar spending frivolously. This is the area I really want to improve on.

ahaa... I think you've hit on it. not what you spend your money on, but why? and why do you spend how?
I think once you figure this out, combined with a close look at your goal, a reasonable plan to get there will emerge.

 

[HFWR]

Ther's nothing inherently wrong with buying gadgets, or blowing some bucks in a bar. The problem arises when outgo exceeds income, and/or no provision is made for "paying yourself first".

 

[Ultimate Cheapskate]

Tempesta - Good question. I know what you're wrestling with, and obviously everyone is different. That said, I think that a lot of folks, as we age, come to a point where we realize that "spending money to get more stuff" has, at best, a diminshing return in terms of generating happiness. The problem is, by the time you realize that, it's too late to instantly achieve financial independence and gain the freedom of calling your time your own. So, you need to start working toward that goal early, or else, I'm affraid, your clock will run out first.

There's a great book called "Stumbling on Happiness" (by Daniel Gilbert) that you might want to check out (of the library). It really helps you focus on what's important in life. Even though it's not really about ER, it helps you think through what "happiness" is all about and will maybe change your thinking on both how you're leading your life now and what you want in the future. Good luck.

Stay Cheap!
-Jeff Yeager

 

[Animorph]

Everything you spend now means you will retire a little later or a little poorer. It's up to you to figure out the balance you are comfortable with between the person you are today and the person you will be in the future.

I budget and plan so that I know what I can comfortably spend without degrading the present/future balance. Until you do that, you won't really know when or even if you can retire at some level of comfort.