Frugal isn't a bad word - it is a blessing. IMHO

[Danmar]

Only a few months?

My rest periods between travels are longer than that, even during bull markets. Loving travel as we do, we do get tired and need to be home for a while.

Yep. It had pretty well recovered by late 2009, or at least I knew it would and the divs were safe.

 

[Fedup]

I have 30% margin for cutting back. But I'm not 100% in stocks, so if we have another 2008-2009 scenario, it would be down 25% and not 50% for us.
But we are most likely cutting back on travel anyway. I have no idea if we want/able to travel in the next few years. That's why I travel more now.

 

[NW-Bound]

I just looked at my records. We only did some domestic road trips in late 2008 through 2009. I now recall spending most of that period hunkering down, and researching RV travel to see what it was all about and if it would work for me. Bought the motorhome and hit the road in 2010. So, we did reduce spending quite a bit during that scary period.

I also recall discretionary spending such as travel tumbling hard after 9/11. In fact, places like Hawaii were hurt badly, and the government encouraged people to continue life as usual.

I wonder if we are getting complacent again after several years of bull market. People's collective memory is really short.

 

[unclemick]

Exactly, frugal and cheap are entirely different and I don't understand why they're often used interchangeably.

I used to be cheap early in ER but now I'm frugal cause I have a lot more and can be more swell-o-mundo after 22 years.

heh heh heh - And yes I still love The Four Yorkshire men post from the early days of this forum.

 

[Osprey]

I think "frugal" is the wrong word to describe spending for "many" of the posters here. Synonyms of "frugal" include "meager, scrimping, miserly, penny-pinching, scant" etc.

While there are certainly people here who fit into that category, the polls on how much people spend have produced more responses significantly above the average household income than below it, and if you're spending that much I don't know that anyone could reasonably conclude you're "miserly" or "scrimping" or "frugal" quite frankly.

"Financially responsible" is the term I would apply to just about everyone here though. LBYM = financially responsible, (even if you're still spending 1/2 the median annual household income in a single month). Not using debt irresponsibly = financially responsible.

"Frugal" would say "I can swim in the water for free" on my trip to Aruba while "financially responsible" says "I can afford to dive the Antilla while I'm there". Heck, "frugal" would probably say just go to the free lake 5 miles from the house instead of traveling to Aruba on vacation in the first place.

I think when most people say "frugal" here, they do so because there isn't a common word for "uses money responsibly". Of course, as that trait is so uncommon in society these days, maybe there just isn't a word for it...

I consider myself to be financially responsible not frugal. Paying for private college, instead of state U for DD, which we felt was a better fit, was doable financially from savings without impacting retirement plan. Could have used the delta of funds for nice vacations or other ways but this gave us joy. I can't have it all, but I can have the things that are most important to me and thus feel very fortunate!

 

[Bamaman]

The words in Posting #1 about living the conservative life are right on the money. But when you start quoting Dave Ramsey, I always think about his Brentwood, TN palatial mansion and 4 story office complex with television studio he says are all paid for.

I'm honestly surprised that my menial salaries throughout 36 years' work allowed me to accumulate what investments I have. I've lived below my means and been more like a cross between Suze Orman and Dave Ramsey.

Not eating out more than once a week is why I'm sitting in Budapest, Hungary right now writing this message.

I married a gal that grew up in a 2 bedroom apartment with 5 kids sleeping in a 10' x 10' bedroom. No car, no telephone, no television until 15 years of age and it was even black and white. Mom would take a chicken and feed 7 people 3 meals. They never had milk or purchased sugar. Her father made twice a normal salary at the railroad and drank it away--on the way home. He left behind 4 screwed up kids who averaged 3 kids apiece and both generations as individuals are disfunctional.

My wife was a Krystal waitress at age 16, and that's still her favorite place to eat--when we eat out. She's the postgirl for frugal. And we're living the good life as a result.

 

[Amethyst]

But, it doesn't matter how many people show up after I'm dead. What matters is, are there people you can count on when you're alive, and need help? Hoping that was true for your generous cousin.

My cousin was in that category. He just enjoyed giving. When he died at 74, 650 people showed up for his funeral. It was a record. The good will that he had generated was amazing.

 

[Steve40th]

Most people tend to live paycheck to paycheck, to keep up with the Jones. Never met the Jones, but I have lived outside my means for a while.
I am paying things off though, and my wife and my plan are to be debt free in about 7 years, due to college for youngest. She starts next year, and we will do some serious scholarship requests etc..
I take advice on frugality whenever I can..

 

[kcowan]

I just tried this little exercise, which was fun (thanks!). Not having two homes, I looked at other options in the event that my stash declined by 50%.

I discovered that I'd need to increase my WR to 3.4% to spend what I normally spend. So that is not so bad. But the catch is that any future CCRC thoughts might have to be tabled forever, unless I could scrape together enough money for it by selling my house and from my usual spending money. Doesn't sound like a gold plated CCRC would ever be in my future, if my stash declined by 50%. Maybe I could afford a cheaper one with abusive help, stale food, and so on.

Of course I am hoping that "Plan A" (aging in place) works out and that I don't need "Plan B" (a CCRC).

The notion was actually raised by Dale Carnegie in his vintage book: "How to stop worrying and start living". He said to think of what is the worst that could happen, plan on how you would deal with it and then STOP WORRYING! Ironically, it encouraged me to take more risks with my life and consequently achieve much greater heights.

We have good friends who live in PV MX year round and their stash is about 25% of ours. They are getting along quite well. They have a tight budget but they also get a lot of enjoyment.

 

[Danmar]

The notion was actually raised by Dale Carnegie in his vintage book: "How to stop worrying and start living". He said to think of what is the worst that could happen, plan on how you would deal with it and then STOP WORRYING! Ironically, it encouraged me to take more risks with my life and consequently achieve much greater heights.

Good advice. I'm inherently an optimist and not a worry'er. Have taken financial risks that most people wouldn't. Has worked out marvellously so far. Probably luck, but that's OK with me.

 

[kcowan]

I wonder if we are getting complacent again after several years of bull market. People's collective memory is really short.

I remember thinking that it was lucky we had bought our snowbird place in 2007. We might have deferred it or cut back on the size (1750) and then regretted it after the recovery.

 

[kcowan]

What matters is, are there people you can count on when you're alive, and need help? Hoping that was true for your generous cousin.

Through a fluke of generations, this cousin was old enough to be my uncle. When I was in grade 8, I was farmed out there for the week that my parents were on a convention. He had me dig post holes (manual digger) for his fence. We got the whole fence done while I was there. But he was one of the most generous, caring people I have met. My Dad loved him like a brother. I drove my Dad out to spend the day with him a month before my cousin died.

 

[Meadbh]

We'd likely forego all/most travel while we recalibrate.

If the s**t really hit the fan, that's probably what I would do too.

 

[Steve40th]

The notion was actually raised by Dale Carnegie in his vintage book: "How to stop worrying and start living". He said to think of what is the worst that could happen, plan on how you would deal with it and then STOP WORRYING! Ironically, it encouraged me to take more risks with my life and consequently achieve much greater heights.

We have good friends who live in PV MX year round and their stash is about 25% of ours. They are getting along quite well. They have a tight budget but they also get a lot of enjoyment.

Great advice, but he had so much money his great grand-daughter is still spending it.. Makes some things a little easier.
But, it is still good advice.