Leisure Spending??

[Marshac]

Even with this average spending, I am able to accumulate $50K a year in wealth between investment growth and savings.

Awesome. It's nice to see someone with kid(s) getting there.... while I don't have kids (I want some eventually), everyone talking about how your ER dreams will die due to the increased cost has given me pause. Are you saving anything for their college, or will you simply cross that bridge when they get there?

 

[Anon]

I already have $800,000 net worth (all self-made). My child won't start college for another 15 years, and I plan on working for the next 9 years. My average net worth has been $50K a year (for the past 16 years), but it started at a much slower pace. Now with $800,000 working for me along with savings, I have been able to grow my net worth by $65K to $75K a year and if I am able to earn more than my average 4.5% over the next few years and manage to increase my earning power, I can see my net worth going up $100K per year. Of course, I am assuming all will go as planned which I can only pray it will. We may have another child which may throw things off a bit, or I may not earn what I plan on earning in those years, but I'm just keeping my fingers crossed and hoping for the best.

So to answer your question about college, I'm sure there will be enough in the pot in 9 years to justify my retirement as well as paying for some or all of my child's college. If not, I may have to keep working at it. Thus my rationale for enjoying life as you go (as long as you live within your means and have control of yourself), because you never know when it may end.

 

[John Galt]

An observation re. "leisure spending" from real life.
Yesterday I went fishing (nothing unusual there).
The fishing was poor but I had a great time being on the water. Cost was minimal; gas for the truck and boat. Everything else was "sunk cost", or for you
accountant types "fully depreciated". Then, in the evening we attended a musical at a nearby theater
(my culture "fix" for the year). Cost $84.00 for 2 tickets in the nosebleed section and the production was so-so.
We didn't dine out as part of this, but I had gas of maybe $5.00, so let's say total cost of $90 for the evening. The point is that the fishing was (almost)
free and much more enjoyable than the stage show.
I have found that free entertainment is all around you
if you just look for it. I used to buy about whatever I wanted, pick up huge dinner and bar tabs at over-
priced locations routinely. A lot of it was miserable.
But, I seldom have had a bad time fishing, or browsing
at Barnes and Noble, or killing time at the library, or
talking to a neighbor, or kicking tires at the local
motorocycle shop, or e-mailing friends, spending time
with my kids and grandkids. I still like my toys, but
I could cut leisure expenses to the bone and miss very little.

John Galt

 

[Traveler]

Free or very low cost entertainment for a cultural fix is pretty easy to find. Here in Sacramento there's often some sort of cultural event happening on the weekends (living history days, street musicians, even the farmers' markets have entertainment). And several times a year local museums offer free admission to anyone, not just kids. Usually the only cost is the gas to get there and parking. That's probably the case around the country.

I agree with John Galt: time spent in the outdoors doing something you love is worth more than season tickets to the opera, theatre, sports events. At least it is for me. The quality of experience at the opera or theatre usually isn't worth the cost. Listen to a CD or watch on television. If you're bored you're not stuck in a crowded theatre. You can simply turn it off.

 

[cute fuzzy bunny]

Free or very low cost entertainment for a cultural fix is pretty easy to find. Here in Sacramento there's often some sort of cultural event happening on the weekends (living history days, street musicians, even the farmers' markets have entertainment). And several times a year local museums offer free admission to anyone, not just kids. Usually the only cost is the gas to get there and parking. That's probably the case around the country.

However, I do remember running into people I knew at the "Folsom Gourd Festival" and cooperatively promising never to tell anyone that we had been there...

 

[Traveler]

The Gourd Festival counts for culture in Sacramento. It's right up there with the grape stomp.

 

[KB]

I think the Gourd Festival was last weekend. I've never gone and I missed it this year. We were landscaping and I'm proud to say we're finally done. 12 yards of bark were spread yesterday and the yard looks great.