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Lbym when is it ok to increase your lifestyle?
Old 07-10-2017, 11:29 AM   #1
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Lbym when is it ok to increase your lifestyle?

Mid 30's only debt is home 121k left. We currently max out Roths, 401k, contribute to 529s for kids and brokerage account. Living in low cola. We are contemplating moving up in house currently in a 4/2 1/2 with very close neighbors and increasing travel fund. Current net worth about 850k. Wanting to up the travel budget from 6.5k/yr to 10k and a home in the 400k range may build 4-5/3 thoughts of having to care for future aging parents and a disabled sibling. We have an additional 1000/mo currently could go to house debt, investments or future goals. We do live on a budget and below our means. We dont want to step out of this place to pursue something that could affect future events but I also don't want to feel we are saving so much now and not enjoying or living as we prosper now.
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Old 07-10-2017, 11:46 AM   #2
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If you want to have more fun, have more fun!

It's OK to increase your spending anytime you want.

You are asking me if I think it's OK for you to spend more dough?

It's OK for you to do anything you want -
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Old 07-10-2017, 11:49 AM   #3
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So I found the great thing about saving is that it gave me and my husband options. So how would uping the travel budget affect the savings? Is there some where specific you want to travel? Some years our travel budget exploded for various reasons, other years we cut back, mainly due to some thing going on with the house.

We brought a bigger house simply because we started having kids and needed the space. It seems like you are doing the basics (401K, roth etc) so I would not worry about doing a little extra travel.

I would consider a house upgrade a little longer because that comes with other spending issues.

But like I tell my son's every action has a reaction and you are right, you are young and I encourage you to enjoy your life. not to be a debbie downer but my husband died from cancer when he was 51, one of my biggest regrets was that every time we thought about going to Europe we put it off to "save" the money even though we were already saving and lbom.
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Old 07-10-2017, 12:10 PM   #4
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So I found the great thing about saving is that it gave me and my husband options. So how would uping the travel budget affect the savings? Is there some where specific you want to travel? Some years our travel budget exploded for various reasons, other years we cut back, mainly due to some thing going on with the house.

We brought a bigger house simply because we started having kids and needed the space. It seems like you are doing the basics (401K, roth etc) so I would not worry about doing a little extra travel.

I would consider a house upgrade a little longer because that comes with other spending issues.

But like I tell my son's every action has a reaction and you are right, you are young and I encourage you to enjoy your life. not to be a debbie downer but my husband died from cancer when he was 51, one of my biggest regrets was that every time we thought about going to Europe we put it off to "save" the money even though we were already saving and lbom.
Upping the travel wont have any effect on our lives. The house will shift things a bit but we are finally coming to a place where all our bases are covered with the surplus. Im wanting to do more destinations we have been all over the Caribbean. We've done Paris and London. Im wanting to visit some of the must sees Italy-Rome,venice etc. Australia, Pyramids in Egypt. I would like to give our kids a few more of these experiences as well. We do value experience over stuff so im willing to forego the home to insure more travel, it can get pricey with a fam of 5.
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Old 07-10-2017, 12:20 PM   #5
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We do value experience over stuff so im willing to forego the home to insure more travel, it can get pricey with a fam of 5.
You should talk to FUEGO. He and his family are in Europe right now. They travel a lot on a limited budget.
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Old 07-10-2017, 12:20 PM   #6
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My philosophy is to enjoy your life, it's a journey, as long as you save every year, your savings is up every year, give yourself permission to spend a little.
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Old 07-10-2017, 01:21 PM   #7
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I would definitely up your travel budget and enjoy. I would probably skip the house as it seems like the one you have is big enough.
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Old 07-10-2017, 01:26 PM   #8
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I would definitely up your travel budget and enjoy. I would probably skip the house as it seems like the one you have is big enough.
The size is adequate but all the bedrooms are upstairs. Our future needs will require a single story home. But it is the future
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Old 07-10-2017, 01:33 PM   #9
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At age 58 we moved from a house like that to a smaller, single story. WE found with the kids gone we did not need the room but it sounds like your situation is different and you many need the room. Here they are building homes that have a small in-law suite attached.
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Old 07-10-2017, 01:56 PM   #10
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Spend as much as you like, when you like.

If you're looking for some things to consider, I think the standard question is "Do you want to eat steak today and only peanut butter in retirement? or eat peanut butter today so you can eat steak in retirement? or aim for consumption that's approximately level?"

I prefer the third option.

Of course, since the future is uncertain, most of us will also consider risks and cushions.
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Old 07-10-2017, 02:10 PM   #11
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I think the fact that you are even contemplating this question tells me you are being extremely responsible, and you can easily splurge a bit now and be just fine.

While LBYM overall is a good strategy, we don't want to overdo it and miss out on enjoying life.
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Old 07-10-2017, 03:09 PM   #12
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I always saved 1/2 of our salary increases and 100% of our bonuses because the goal was to retire at age 50. I have no regrets that while friends were in Hawaii we were home. We spent when the desire to spend exceeded the desire to retire early, plain and simple.

I never felt deprived. We had everything we needed and more.

Travelling more might have been a good idea but we're really homebodies.

I don't think anyone but you can really answer your question. Listen to your gut ... it's gotten you into a very good position so far
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Old 07-11-2017, 03:08 PM   #13
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I always saved 1/2 of our salary increases and 100% of our bonuses because the goal was to retire at age 50. I have no regrets that while friends were in Hawaii we were home. We spent when the desire to spend exceeded the desire to retire early, plain and simple.

I never felt deprived. We had everything we needed and more.

Travelling more might have been a good idea but we're really homebodies.

I don't think anyone but you can really answer your question. Listen to your gut ... it's gotten you into a very good position so far

Don't assume a trip to Hawaii is expensive, although that is a fairly good assumption since everything is imported lol. I'm going for less than $1500 in october, but in laws will be paying for lodging so that helps. Flying from flyover country.

I spend about 10k/yr on travel and provided history prevails am well on way to ER.

I'm more concerned with those that grab a coffee before work, lunch with co-workers and are then "too tired' to cook own food at home, so they go out again.

$6 coffee + $8 lunch + $12 dinner *365 = $9,490. That's 6 trips to Hawaii for me.

By not eating out I afford myself the luxury of tropical vacations.
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Old 07-11-2017, 08:36 PM   #14
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Easiest question ever. You can increase your lifestyle so long as your increase keeps you below your means. Simple.
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Old 07-12-2017, 01:45 AM   #15
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Easiest question ever. You can increase your lifestyle so long as your increase keeps you below your means. Simple.


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Old 07-12-2017, 04:00 AM   #16
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Have to agree with Dallas and Scuba.
Once all of the emergencies, retirement and college funding are planned for, go for it. Like earlier posted, the fact that you are asking the question is a green "go" flag. BTW, be sure not to feel any guilt over spending the cash...
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Old 07-12-2017, 06:47 PM   #17
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If you're meeting your savings goals, go for it. After the DSs were finished with college (actually when the second was two years away), we realized we were able to up spending so that I/we were no longer troubled at purchases like a new computer or a Euro vacation, and also realized ER was within reach.
The place we bought in Reno is paid off by selling off the Houston house and Colorado cabin, but we have discussed buying a bigger place in case my mother or DW's aunt can no longer make it on their own (in fact we just looked at one that would up the retirement withdrawals). Mom won't leave unless it is absolutely necessary and it will be difficult to convince her even then.

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Mid 30's only debt is home 121k left. We currently max out Roths, 401k, contribute to 529s for kids and brokerage account. Living in low cola. We are contemplating moving up in house currently in a 4/2 1/2 with very close neighbors and increasing travel fund. Current net worth about 850k. Wanting to up the travel budget from 6.5k/yr to 10k and a home in the 400k range may build 4-5/3 thoughts of having to care for future aging parents and a disabled sibling. We have an additional 1000/mo currently could go to house debt, investments or future goals. We do live on a budget and below our means. We dont want to step out of this place to pursue something that could affect future events but I also don't want to feel we are saving so much now and not enjoying or living as we prosper now.
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Lbym when is it ok to increase your lifestyle?
Old 07-12-2017, 07:18 PM   #18
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Lbym when is it ok to increase your lifestyle?

I for one will tell you to not upgrade the house. That is one thing I regret. We still save a boatload but I think big house is a waste. We upgraded house to have extra garage and a pool. I could have built the pool in the old house and we would have been fine without a third garage. Explore if you can add a room downstairs on your existing house.


PS: I would travel more because experiences and memories with family would last you lifetime. In fact, I am doing just that last couple of years.
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Lbym when is it ok to increase your lifestyle?
Old 07-12-2017, 07:33 PM   #19
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Lbym when is it ok to increase your lifestyle?

I was way too frugal. Then my six year old was diagnosed with lymphoma.
Money no longer was that important.
Carried her in my arms on an urgent, impromptu deluxe trip to WaltDisney World, she was too weak to walk.

Took a fun family trip every summer after that.

Happy ending, she is 27 and healthy, college graduate earning her way in life, saving her money now.
And I'm still going to early retire as planned.
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Old 07-12-2017, 07:46 PM   #20
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Yup, you have to fight hard to overcome your frugality. I still have to struggle with it.

But with the home improvements both outside and inside I hope to blow at least 100 grand extra next 12 months.

I'm gonna try to blow a quarter mill next year -
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