Retirees are too frugal!

[ShokWaveRider]

I fall into this camp, the hardest thing I can cope with is seeing our "Nut" decrease. I hate it. Even if we divided it by 30 years (Not including Investments or CD interest) we could not spend it all. Bear in mind I am a VERY VERY concervative investor and only have fixed income investments. Add $30 pa SS in a few years and I still cannot get used to it. Shhhhhhhh.

 

[CaptTom]

After spending a lifetime saving money, it can feel unsettling to begin pulling cash from accounts that were previously off-limits.

That's my parents. After my father RE'd, they remained frugal. It took a while, but eventually they bought their first new living room set. Then their first new car, and more travel.

I think it takes a while for the reality to set in that you're going to be OK financially. Even then, nothing wrong with being frugal with the small stuff.

My own plans sort of depend on my ability to stay somewhat frugal. I don't plan to change much.

Go and price a new truck. It will look like they are giving away those $40K cars...

Ha! Price a USED truck and that $40K won't look so bad, either. I remember when a base-option truck, no fashion-branded interior or fancy wheels, was cheaper than a low-end car. No more!

 

[audreyh1]

I've considered stopping telling DW when the portfolio hits new highs since she always says "we should start spending more." I am thinking about replacing my 8 year old Lexus hybrid SUV. That would involve a $30+ cash expenditure and DD is getting married next year so that is another big pop. The concept of spending the cash doesn't bother me but liquidating equities to free up cash does. Go figure.

What a great excuse to take profits on some high flying equities!

 

[ncbill]

I do not spend "that much" because I already have what I want and need--material possession-wise.

No kidding.

I look around my home and dream of getting rid of at lease half of the stuff I see once the last kid is off to college next fall.

As for vehicles, I never plan to spend tens of thousands for a new one again.

Instead I'll lease whatever's on special, paying the monthly nut out of cash flow..

 

[mtheulen]

Clearly, I'm on the wrong board to be talking to anyone about the price of cars.

LMAO! Me too
The motor in my dragster is 25K 1100 HP. And use coupons at the grocery store every week,drive a 20 year old car.We all have our thing!

 

[Amethyst]

I have no problem treating myself to the occasional luxury as long as the total spending for the year is no more than the tools like FIRECalc say I can safely spend. In fact, the older I get the less resistance I have to spending, because if not now, when?

+2

 

[audreyh1]

I will go on the record as saying that I would have no trouble dropping 40K+ on a nice car/SUV if it was something I really wanted. So maybe I can balance the thread.

I can't take the money with me!

 

[mtheulen]

I will go on the record as saying that I would have no trouble dropping 40K+ on a nice car/SUV if it was something I really wanted. So maybe I can balance the thread.

I can't take the money with me!

Well said
As an old farmer told me when i was a young man:
He had never seen a hearst pulling a U-Haul!

 

[Meadbh]

I will go on the record as saying that I would have no trouble dropping 40K+ on a nice car/SUV if it was something I really wanted. So maybe I can balance the thread.

I can't take the money with me!

+1

 

[FIREd]

We have not been spending money freely since DW retired. We decide on an overall budget for the year and we stick to it. Our budget is generous enough to allow some luxuries and we also save part of our withdrawals for future large purchases (like cars). It would take a dire situation to convince me to double dip in our investments, which thankfully we haven't had to do yet.

 

[NW-Bound]

I still have to declutter my homes and their garages, well actually the boondocks home is reasonably uncluttered, so can't see myself bringing home more "stuff". I can only travel so much each year, and do not care for any new car.

I want to splurge on more lithium battery storage for my upcoming project, and to bring it up to 100 kWh capacity. But then, I would need a solar farm to get enough electricity to charge the bank, which I would do if my backyard were big enough.

I want to spend money on things to keep me occupied and engaged, not something that turns me into a couch potato.

With only 2 months left in the year, my spending rate so far is less than 2.4% WR. When I claim SS, what will I do with the extra money? Move to a farm so I have room for that solar array and 1 MWh of lithium batteries?

PS. The batteries and associated electronics will go in a garden shed, not into the garage.

 

[Chuckanut]

Next car will probably be a Camry hybrid getting 50 MPG. Gas tax in California is going up 20 cents next Wednesday.

I did splurge and stocked up on low sodium Wheat Thins at 3/$5.00 at Safeway's Five Dollar Friday sale. Picked up some Haagen-dazs ice cream on sale while I was there as well.

You will love the Camry. My older model gets 'only' about 38-40 mpg overall. On some road trips I have averaged in the low 40's. A 20¢ a gallon gas tax increase in California!!!! That just blows the mind.

Wheat Thins at 3/$5.00 are a good deal if one likes wheat thins. The best return on my money these days is getting a good deal. Beats the heck out of bank interest rates.

 

[TrvlBug]

I will go on the record as saying that I would have no trouble dropping 40K+ on a nice car/SUV if it was something I really wanted. So maybe I can balance the thread.

I can't take the money with me!

Add me to the list. In fact we just dropped $45K on new car replacing DH's 2009 because it didn't have all the safety features that my 2016 does and it was annoying me when I drove his car .

 

[RE2Boys]

Can’t imagine ever dropping 40k on a car - and it’s laughable to expect to live off of my projected social security!

In 2016, I did spend about $36K on cars, but I bought three for that money that fit my needs perfectly:

Traded 2005 minivan for 2012 Hyundia Sante Fe with 40K miles in Jan 2016.

Purchased from private seller a 2010 Mariner SUV for son with 34K miles in May 2016

Purchased from private seller a 2011 Escape SUV for other college son with 63K miles in Dec 2016.

 

[Danmar]

I will go on the record as saying that I would have no trouble dropping 40K+ on a nice car/SUV if it was something I really wanted. So maybe I can balance the thread.

I can't take the money with me!

Agree. In your case not surprising given you previous thread re 8 figures. I regularly spend pretty large sums, but as others have said, why not if you can afford it? Given how the market has done recently, I’m not surprised some people are loosening the purse strings a bit. We certainly have. New boat, expensive trips, more assistance to daughter to buy house, more charitable giving, etc. After all that’s what I saved it for. At least within the constraint of the risk of running out which certainly seems to be reducing.

 

[RobbieB]

I just ordered up 5 lbs of jumbo Chestnuts from RC Farms in Oregon for fifty bucks.

Last year the grocery didn't carry them. I will have my fresh (home) roasted chestnuts for the holidays this year. Big fat ones too -

Blow that dough!

 

[GravitySucks]

My spending is up this month.
Home owners insurance due.
New tires for Camry.
Oven died. $230 for parts or $400 for a new range.
Took a date to Arlo Guthrie concert.
Fence blew down snapped a post. Had to hire out the repair as I was on the road.
$400 gas for RV.
Doing my part to keep the economy going.

Ps... Stone Crab season just opened in Florida, need to have a few pounds shipped up.

 

[Walt34]

Go and price a new truck. It will look like they are giving away those $40K cars...

Indeed!

I recently read an article that Ford is coming out with some luxury model pickup truck that if fully loaded with options can clear $80k. Yikes!

On a smaller scale I'm trying to do my part. I just got an email from Horizon Hobby after buying another airplane that I'm now a member of their "Pro" club because I spent more than $1k on hobby stuff in the last 12 months. This gets me reward points so I can buy more hobby stuff and some free shipping.

Sigh. So many airplanes. So little time....

 

[joeea]

If the economy is depending on me to spend $40k for a new car just because I can, then it's in for a big disappointment.

I spend on things that make a difference to myself and my family. A $40k+ new car isn't on that list.

For many years I've been able to spend more than I do. If I'm happy, and my family is happy, then the economy can just f*ck off.

Get off my lawn you damn economies!

 

[NW-Bound]

If the economy is not doing well, your investment returns will be lousy, or may even crash.

That said, it is of course better if someone else is doing the lifting, while you enjoy the result. It's the same as when someone else is drafted to go to war, while you get deferral.

See: https://en.wikipedia.org/wiki/Paradox_of_thrift.

 

[mickeyd]

I try to spend more each and every month but my stash still continues to grow and grow. I don't seem to need more "stuff", both cars are paid for, no mortgage, even DW has cut down her trips to Amazon.


Anyone need cash?

 

[marko]

Clearly, I'm on the wrong board to be talking to anyone about the price of cars.

If it makes you feel better, DW went out this summer and bought a new BMW X5. Not to be outdone, last month I got a new Mercedes S.

 

[Danmar]

I just ordered up 5 lbs of jumbo Chestnuts from RC Farms in Oregon for fifty bucks.

Last year the grocery didn't carry them. I will have my fresh (home) roasted chestnuts for the holidays this year. Big fat ones too -

Blow that dough!

With all due respect Robbie, I think you may have to move past luxury foodstuffs if you really want to move the spending dial.

 

[RobbieB]

Did you see my first 2 posts in this thread?

Hey, every penny blown counts -

 

[daylatedollarshort]

We used to spend much more but got interested in decluttering and sustainable living and have no interest in going back to our old ways. For us the hedonic treadmill is a real thing. I'd rather leave the money to the kids and abused elephants than buy things we don't need. I already have a $30K car with enough miles left I may not need another in this lifetime anyway. We go out every day and I like the math and research part of finding fun things to do that don't break the bank. Tonight we have a Halloween party on an aircraft carrier with two bands and a DJ. DH says one party only but we'll see. I have a second party lined up for later.