When is enough , enough?

[Slim11]

I think that was a thread a while back, and there are some with when to give money away. But for me , when do I spend down some of what I saved. It seems that the saving attitude has gobe into my retirement with me. The money I saved I try not to spend. Even though I can afford too. Is this a common mindset? I know we dont have crystal balls and stuff can go uo, so save for the future. But what if we saved too much? Should you enjoy it while younger or hold on to it untill you really have no need for it? This in itself is a problem. I find that in retirement, I have more of these type questions and stress then when I was working. I think I have more then enough $$$$ , and to leave the kids some, so why cant I get out of the need to save?

 

[Texas Proud]

It is hard to change a mindset you have had for the vast majority of your life...


I still complain to my wife and daughter when they waste even a dollar on something that is clearly a waste... it is the way my brain is wired and nothing is gong to change that... (well, if I won the billion dollar lottery I would change)

 

[FLSUnFIRE]

Do you feel deprived? If not, I don't see a problem. If you do then you may be crossing the Frugal-Cheap threshold.



I'm pretty frugal, perhaps a bit more so now that I don't have an income but then my NW is less than my FIRE date 2.5 years in and I have a long way to go so I'm not feeling flush. I'd regret running out more than dying rich and have a LONG retirement ahead of me (I hope!). I don't deny myself things I really want but tend to mull over purchases a while as I research and consider how much I'd use them. I've regretted buying stuff more than the opposite throughout my life. -I really haven't regretted spending on experiences though -even if they were bad, now I know and have experienced them! I guess if I felt "rich" I might spend more just because I can but it's not stuff I long for now.

 

[DrRoy]

We have spent from 1.2 - 2.2X what I estimated before RE. The high year had a couple remodel projects and our travel is much more than I guessed.

 

[Zathras]

Enough is enough when the future is 100% certain

 

[Aerides]

Should you enjoy it while younger or hold on to it untill you really have no need for it?

That is where your answer lies, and no one can find it for you. But yes, spend that budget your expected, at least start there.

 

[Badger]

I have been retired for almost 12 years now with more than enough to last us yet still look to save a few pennies and consider value in purchases as well as not being wasteful. But I grew up with parents who instilled the importance of preparing for the future and have continued this all my life. I even go behind my wife when she isn't looking and turn off the lights she leaves on. No sense in poking the bear. :grin:
So far I don't see our nest egg doing anything but increasing during those years. Since I have what I need I'm not inclined to buy just for the sake of having more stuff but more willing to spend on those experiences in which I can still participate.
Maybe you can start by using some of the money you accumulated from interest/dividends without affecting the nest egg.

Cheers!

 

[marko]

I hope you end up where I did: after a very few years, you start to see that the bills are being paid, the cash stash is still growing and you're ending the year with more than the year began. Eventually you start to loosen the purse strings, hopefully sooner than later.

But DO take advantage of your youth/health while you can.

 

[street]

I get your dilemma after 7 years in ER I'm very frugal to a point. We don't waste money and but don't deny your life of what we need. For me it is easier now to spend money carefully then when I was working or early into ER.

I think it is more about getting comfortable and having some confidence living without an income. I do know at some time in life as I age it doesn't make sense to keep saving.

Good Luck!

 

[frayne]

Old habits die hard. I'm 72 and playing around with firecalc yesterday, with current spending I'm at 100% success rate for thirty years out. I may throw caution to the wind and eat at chick fil a tonight.

The reality is, my heirs are going to get a nice little chunk of change when I take the dirt nap.

 

[ShokWaveRider]

When YOU have won the game. Winning is different for all of us we have won, in fact we won years ago and did not even realize it. You will know when it is time, I am sure you are there already. Good luck.

 

[bigcmagor]

My folks were never able to change the frugal mindset. They are still unwilling to spend on quality of life enhancements despite their eight figure net worth. Fortunately, I'm spending their money on these enhancements for their benefit anyway. I've stopped asking permission.

 

[athena53]

But DO take advantage of your youth/health while you can.

This. I retired almost 10 years ago and the investment pile keeps increasing (2.3% average annually) even after withdrawals. That, to me, is a sign that my withdrawals are sustainable. I'm almost 71 so a small annual decrease probably wouldn't be cause for alarm, but I just can't do it!

So, it does take time to feel at ease with not having a steady income but you can get there. Just don't save it all for "someday". I've had some fantastic travel experiences and I'm not done yet but I can't do hikes with names like "Boulder scramble" anymore- at least not fast enough to keep up with the 40-somethings.

And the little frugal things may never go away. Yesterday after consulting with an oral surgeon about getting yet another dental implant ($$$$, but I love the ones I have), I went to the Customer Service counter at the grocery store because my loyalty card hadn't been updated with a 17 cents/gallon discount on my next tank of gas from their station. My typical fill-up is under 9 gallons.

 

[Midpack]

I have been retired for almost 12 years now with more than enough to last us yet still look to save a few pennies and consider value in purchases as well as not being wasteful. But I grew up with parents who instilled the importance of preparing for the future and have continued this all my life. I even go behind my wife when she isn't looking and turn off the lights she leaves on. No sense in poking the bear. :grin:
So far I don't see our nest egg doing anything but increasing during those years. Since I have what I need I'm not inclined to buy just for the sake of having more stuff but more willing to spend on those experiences in which I can still participate.
Maybe you can start by using some of the money you accumulated from interest/dividends without affecting the nest egg.

But what if we saved too much? Should you enjoy it while younger or hold on to it until you really have no need for it? This in itself is a problem.

That is where your answer lies, and no one can find it for you. But yes, spend that budget your expected, at least start there.

+1. I’ve also been retired for 12 years. We spend more than we planned, enjoy a few unexpected perks, but we’re still going to have more than enough based on any credible projection. But we still have many years left, and I don’t see a reason to see spend more. Whatever is left will go to good use.

 

[old medic]

But DO take advantage of your youth/health while you can.

I will second that.... It can instantly change in a split second. Mine sure did.

 

[Andre1969]

It's hard to snap out of that frugal mindset. The other day, I got a beer out of the freezer that one of my housemates had forgotten about. Once it thawed out, I opened it and poured it out and recycled the can. And this morning, I poured out the rest of a Yuengling that I only drank about half of last night.

I hate seeing it go to waste (and jokingly call that "alcohol abuse"). But in the overall scheme of things, that canned Milwaukee's Best Ice cost about 60 cents. And that half-a-Yuengling probably came out to around 40-45 cents.

But then, I thought about it for a moment, remembered eh, it's not going to bankrupt me, and forgot about it. Well, I didn't completely forget about it, since I just made a post about it!

Although I guess my hangup is more about being wasteful, than being cheap. The two don't necessarily go hand in hand.

 

[Luvtoride]

Old habits die hard. I'm 72 and playing around with firecalc yesterday, with current spending I'm at 100% success rate for thirty years out. I may throw caution to the wind and eat at chick fil a tonight.

The reality is, my heirs are going to get a nice little chunk of change when I take the dirt nap.

My version of that thought (which I believe I read somewhere here) is...If we don't fly first class, our kids will.

This is a very personal decision/ mindset that each of us must come to grips with. Being only 5 months into retirement, I'm not in a great position to have "Changed" my spending ways yet. As long as we have our health, we are going to do things like taking our kids and grandkids on a cruise over Xmas week this year. I want to enjoy the experiences with our family, while we are here and able to do so.
I wish everyone a long and healthy retirement, but there are no guarantees.

 

[Car-Guy]

I made that decision when I retired. At that time, I knew what I had, what would be coming in, my risk tolerance and what I wanted to do in the rest of my life. So I thought I had enough (and then some buffer ) when I retired. Otherwise, I would have probably kept on working.

 

[braumeister]

My version of that thought (which I believe I read somewhere here) is...If we don't fly first class, our kids will.

I always smile when I see a nice RV with the sticker on the back "Spending our kids' inheritance".

 

[ShadowBloom]

When my parents were ill and reluctant to spend, I tried reminding them that they had saved for old age and for a rainy day, and that they were old and it was pouring.


They remained reluctant to spend, but even though I am not yet that old and it is only drizzling, I try to keep this thought in mind.

 

[Sunset]

It's hard to snap out of that frugal mindset. ......
.....

Although I guess my hangup is more about being wasteful, than being cheap. The two don't necessarily go hand in hand.

+1

I turn off the LED lights in a room nobody is using because it's a waste, even if it would only cost 25 cents per month !!

I grew up with Depression parents, and we were pretty poor, so wasting something meant less money for something else later. It's really stuck with me. "Waste Not, Want Not."

 

[Car-Guy]

+1

I turn off the LED lights in a room nobody is using because it's a waste, even if it would only cost 25 cents per month !!

I grew up with Depression parents, and we were pretty poor, so wasting something meant less money for something else later. It's really stuck with me. "Waste Not, Want Not."

I often laugh at myself for turning off lights, etc when not needed, but I still do it. And then I'll turn around and go to a Casino and drop "thousands" in just an hour or so. Then I think about how many lights I have to turn off to save enough for one casino trip. Maybe a lifetime of turning out lights would pay for one trip, maybe.... How stupid! Am I going to change? Nope!

 

[GrayHare]

We savers have trouble spending for the same reason spenders have trouble saving. Some combo of genes, upbringing and randomness causes us to favor one over the other. This makes me doubt the effectiveness of various government programs to encourage saving for retirement. The people who benefit most from those programs would have found ways to save anyhow.

 

[Car-Guy]

We savers have trouble spending for the same reason spenders have trouble saving. Some combo of genes, upbringing and randomness causes us to favor one over the other. This makes me doubt the effectiveness of various government programs to encourage saving for retirement. The people who benefit most from those programs would have found ways to save anyhow.

Maybe, but IMO, the 401k program was the best thing for savers ever. The matching funds my company offered was a huge enticement to save. And once started, I just let it accumulate. I've been retired for over 10 years now and will start tapping my 401k next year (RMD's) for the first time. It's given me a huge cushion in retirement.

 

[flyingaway]

I often laugh at myself for turning off lights, etc when not needed, but I still do it. And then I'll turn around and go to a Casino and drop "thousands" in just an hour or so. Then I think about how many lights I have to turn off to save enough for one casino trip. Maybe a lifetime of turning out lights would pay for one trip, maybe.... How stupid! Am I going to change? Nope!

This is exactly what I think. I turn off lights whenever nobody needs them. I compare prices of groceries between Kroger and Walmart constantly. I am hesitating if I should spend (waste) money at casinos. I consider casino visits as entertainments since I almost always lose there. If I don't spend my money now, what if I regret in the future. But what if I need more money in the future? I have been trying to balance spending and future needs a lot.

My current solution is to spend money on entertainments, including travels and casino visits, etc, and gift money to my children at the same time, also do Roth conversion (paying taxes). These amount to 2% of my portfolio and my normal living expenses are another 2%, so that I am getting close to the 4% SWR.