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How much time will this cost me?
Old 02-28-2019, 05:14 PM   #1
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How much time will this cost me?

I have been crunching numbers like a madman trying to determine if we could retire this year (age 52). We can't, but I did find it interesting to look at spending time vs. money. This is what I came up with for us. It's not exact math, but it helps me talk to my wife about what a new pool might cost us WRT delayed retirement. It is also interesting that ongoing monthly spend in retirement has a much larger impact vs. one time spending now. Anyway, here's the data:

One time expenses before retirement
$1,000 = 1 more day of work
$10,000 = 2 more weeks of work
$100,000 = 6 more months of work

Monthly Expenses in retirement
$10 = 3 more days of work
$100 = 6 more weeks of work
$1,000 = 1.5 more years of work (this one surprised me)
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Old 02-28-2019, 05:32 PM   #2
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Good way to look at time vs. money. Occasionally when I am considering an annual recurring expense, I turn the 4% rule around. An annual $4k expense requires an additional $100k in savings. It reminds me that sometimes it is easier to cut the budget than increase savings.
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Old 02-28-2019, 05:37 PM   #3
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All this math assumes you are “maxed” out. If you have some slack, small increases in expenses or one off expenses shouldn’t matter.
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Old 03-01-2019, 04:47 AM   #4
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OP, good to see you are planning and considering time vs. money. Remember that your time is finite and so is the amount of savings you accumulate. The point is to have sufficient $ to live a lifestyle you can enjoy. If one must have a new BMW every year and a 5 bedroom home with a cigar bar and swimming pool, they in all likelihood may have to work longer than the guy who drives a low mileage Kia purchased used that he will keep for several years. You, I am sure, get the point. You may have more time being FIRED with a more frugal lifestyle, but the lifestyle needs to be one that you and your wife can be happy with long term. Good luck!
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Old 03-01-2019, 05:47 AM   #5
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As you can see, working longer does not add to RE income quickly.
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Old 03-01-2019, 06:21 AM   #6
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As you can see, working longer does not add to RE income quickly.

OTOH, working longer does subtract from time spent in retirement in a nice, linear fashion......
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Old 03-01-2019, 06:39 AM   #7
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OYou may have more time being FIRED with a more frugal lifestyle, but the lifestyle needs to be one that you and your wife can be happy with long term. Good luck!
^

OP, if you're using retirement math to say no to a pool...eh that's one thing, but if you nickel and dime everything the math will always win. Many of us could retire earlier if we do major revisions in our expenses, but we want to retire to a lifestyle, not to watch every dollar for the rest of our lives.

Back to the pool, if that's something you've previously been on board with, and was something that was always in the plans, you might wanna put it back in the math.
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Old 03-01-2019, 09:02 AM   #8
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^

OP, if you're using retirement math to say no to a pool...eh that's one thing, but if you nickel and dime everything the math will always win. Many of us could retire earlier if we do major revisions in our expenses, but we want to retire to a lifestyle, not to watch every dollar for the rest of our lives.

Back to the pool, if that's something you've previously been on board with, and was something that was always in the plans, you might wanna put it back in the math.
Good point. The pool was not always on the table and would represent lifestyle creep for us. Instead of creeping, we have decided to not work 6 more months.
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Old 03-01-2019, 09:59 AM   #9
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Good point. The pool was not always on the table and would represent lifestyle creep for us. Instead of creeping, we have decided to not work 6 more months.
Good move. The pool, depending on the size can cost you $1600 - $1800 per year. Chemicals, electricity, and later on a pool service when you can't clean it or just get tired of doing so. Better to go to the community pool especially if you live in a development that uses your HOA fees to pay for that pool's upkeep. Also, you meet people at the pool and shoot the bull.
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Old 03-01-2019, 12:40 PM   #10
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Although a pool would be cheaper than buying a new house later on that has a pool. My neighbor had a pool installed a few years back. The wife wanted to move closer to the grand kids. Instead, they installed a pool, and now the grand kids come to them.
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Old 03-01-2019, 09:27 PM   #11
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A year before I retired I was considering replacing my 10 year old car...I shopped around and test drove a few cars but couldn't find something I liked. Then I found out that I could take a one year leave of absence without it affecting my pension and then retire after that year was up.

So, I did the paperwork and took a year off reasoning that I'd rather look at my old car in the driveway than look at a new car in the parking lot at work from my desk.
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Old 03-02-2019, 12:28 AM   #12
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If you knew you how many years of life either one of you had, how would that change your thoughts?

Had lunch with a recent cancer survivor last week. He and his DW are spending some of their retirement savings on a condo down south to snowbird. They want more time together outside (golf, walking, etc.) in the winters now. Their perspective changed with a single diagnosis, and they decided the kids can get by on less (inheritance).
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