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04-20-2017, 04:43 PM
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#21
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,302
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Quote:
Originally Posted by DrRoy
This week I started to take down a large spruce tree that was slowly dying. I figured I had the time. DW wanted me to have the tree service take it down, but I though it was a good way to save $500. After seeing how far I got in a week I'm letting them do it.
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I'm hiring out more stuff like that too in part because, setting aside humanitarian considerations, I'm very much aware I'm worth far more to DW alive and uninjured than any amount of money I'd save on a DIY project. So if there is almost any risk of injury I hire it out.
__________________
When I was a kid I wanted to be older. This is not what I expected.
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04-20-2017, 04:45 PM
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#22
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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For me it was easy and it simplifies my life.
Take tools for instance. I used to agonize over value and cheap out all the time. The stuff broke often and I just tossed it and bought another.
Now I just buy the most expensive stuff they have -
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had someone clean out the gutters
04-20-2017, 05:53 PM
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#23
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Thinks s/he gets paid by the post
Join Date: Mar 2017
Location: New York City
Posts: 2,838
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had someone clean out the gutters
Quote:
Originally Posted by Walt34
I'm hiring out more stuff like that too in part because, setting aside humanitarian considerations, I'm very much aware I'm worth far more to DW alive and uninjured than any amount of money I'd save on a DIY project. So if there is almost any risk of injury I hire it out.
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+1 sure dont want to fall off, i dont bounce well at 312 pounds
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04-20-2017, 06:02 PM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,638
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Start planning a remodel. You'll learn how to spend very quickly.
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04-20-2017, 06:08 PM
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#25
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Recycles dryer sheets
Join Date: Jan 2016
Location: near Phoenix
Posts: 189
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I was cheap during our first couple years of retirement. Then our granddaughter went to an out of state college for two years and we gave her $1K per month for living expenses during the school year. She's a good kid, excellent grades, worked several jobs at a time. Surprisingly, we didn't miss the money. She is graduating next month and we just purchased a winter home in Arizona. I figure those expenses will replace what we've been sending her. I'm more confident we can afford the new house than I would have been a couple years ago. We took out a small mortgage, but put 80% down cash. And we didn't have to touch our IRA's. Life is good!
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04-20-2017, 07:36 PM
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#26
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Recycles dryer sheets
Join Date: Oct 2014
Posts: 125
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I'm in my third year of retirement (I'm 56) and like many I'm finding it challenging to spend money. I have a budget of $5K/month that covers everything and room for some extra and doesn't require me to dip into any savings. I don't want to spend over the budge, although I really can and the savings will hold up. I just don't wanna travel and splurge like I did when I was working. It's really an odd & surprising aspect of retirement that I hadn't expected. Maybe it'll change later. I'm toying with a vacation house but can't quite pull the trigger. It's as if I enjoy the search and planning more than the actual purchase.
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04-20-2017, 07:50 PM
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#27
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Recycles dryer sheets
Join Date: Jul 2015
Posts: 395
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Quote:
Originally Posted by FUEGO
We have the same problem. Upon retirement in 2013 I finalized the budget at $32k. We barely spent that in 2014 in spite of having a $9000 major exterior renovation project on the house (deferred maintenance). Then in 2015 we only spent $24,000. Way below what we could spend based on a reasonable withdrawal rate for a 30-something AND I was starting to get some pretty decent side hustle income flowing into the checking account.
So for 2016, I raised the budget to $40,000 per year because, hey, you only live once, right? Might as well try to make sure you're doing it right. We spent $39,000 but $8000 of that was a used vehicle purchase to replace our 16 year old cars. So far 2017 doesn't look like we'll hit $40,000 but we'll try We're spending 9 weeks in Europe however half of the trip expenses were already paid during 2016 (lodging, flights, lots of airline points spent).
Through March 2017 we are running $3,000 under budget (just under $7000 spent vs budget of $10,000 for Q1). So 2017 might be another low spending year too.
Things I'm doing to try to spend more money:
-tell myself "yes, we can afford it" whenever it's a purchase or expenditure that will be highly rewarding (travel, gadgets, outsourcing not fun home maintenance tasks)
-be looser with replacing things (kid stuff, clothes, shoes, electronics, etc)
-gift more generously
-host more parties to treat friends nice (kind of failed in this regard; life gets busy )
-don't worry about the $1-10 expenditures as much. Driving 20-40 miles for something kind of frivolous used to bother me but now it's no big deal. If the grocery store overcharges me by a buck I'll no longer go back in the store to get my $1 back.
-occasionally go out to eat or get takeout even when there's perfectly acceptable food inside the fridge.
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Ha - this is the "problem" with people in this forum. And by "problem" I don't really mean problem, because it got most people where they are. BUT - for the love of [insert your deity here], stop fretting over single George Washington expenditures. I'm sitting here imagining you driving home after they charged you an extra $1. I bet you don't go back now, but I also bet it is killing you inside. I also bet you do make more $1-$10 expenditures, but you probably go through an agonizing analysis for each one. Suggestion: change your numbers - especially if you are someone like OP with $2.7M. How about, if you want something that is $100 or less, just buy it. Who cares.
Ohh - and you know what? If you are having trouble spending your budget, that means you don't need a budget!! Just spend freely and check the account balance every month to ensure you are not off the rails. This completely goes against virtually every forum member's rules to live by.
I realize this post might come off somewhat like I am attacking you, but I am not. I'm really attacking me. When I read your post it sounded exactly like me. So I am giving myself some terse advice.
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04-20-2017, 08:01 PM
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#28
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Recycles dryer sheets
Join Date: Jul 2015
Posts: 395
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Quote:
Originally Posted by Music Lover
Yup...been retired a little over a year and still can't spend much. My one "extravagant" purchase was about $2000 on a nice bass...irrelevant in the grand scheme of things. I've also been researching 2-3 year old vehicles to replace my older car and have even taken a few test drives, but I just can't pull the trigger on anything.
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I have to ask....why not a new car?
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04-20-2017, 08:01 PM
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#29
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Thinks s/he gets paid by the post
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 3,165
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Quote:
Originally Posted by FUEGO
We have the same problem...
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I have the perfect solution: Send the kids to private school!
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04-20-2017, 08:06 PM
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#30
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2016
Posts: 8,968
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Hehe, I don't even return stuff anymore.
I do a lot of DIY and I'll go buy some stuff for a project and later change my mind and go a different way. I just buy new stuff and toss the old (still brand new) stuff inna trash.
It's not worth the time to return it.
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04-20-2017, 09:14 PM
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#31
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Full time employment: Posting here.
Join Date: Nov 2009
Posts: 592
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Quote:
Originally Posted by NoOneGetsIt
I retired at 52 this year. We have saved and lived well below our means for decades. We have 2.7M of which half is untaxable...our house is paid off, cars paid off, no debt....but we are struggling learning how to actually start spending the money. All those years of being miserly have become ingrained. Anyone else have this problem??
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We retired at 58/57 (in 8th year). Fit your description (no debts - house, car, etc, and half of seven figure investments in taxable accounts). No pensions or annuities - just investments for retirement income along with Social Security. We do manipulate income for ACA subsidy. ACA (healthcare) has been a very expensive early retirement issue. I'm on Medicare now, and wife will be next year.
Since retiring, we've spent winters along the gulf, as it was a goal of ours, but everything else spending-wise kind of chugs along as before retirement (no change in the rest of the LBYM). We have spent considerable time looking for a 2nd place, but can't seem to get serious about it (and don't really care for VRBO style winter rentals no matter how much we've spent on them). Buy inexpensive cars. Only own one now - current 2013 Kia Forte. Get rid of them before the 5 year/50k miles bumper to bumper warranty has expired. Don't want trouble with an older car on the road. Budget has increased for travel/entertainment over the years, but most of it goes unspent.
Will probably keep this up as we've been so long in the LBYM mode finding it's difficult to change old habits, but we're trying...
__________________
“Believe me, my young friend, there is nothing - absolutely nothing - half so much worth doing as simply messing about in boats.” Kenneth Grahame, The Wind in the Willows
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04-21-2017, 04:11 AM
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#32
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Thinks s/he gets paid by the post
Join Date: Jun 2016
Posts: 4,661
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DH & I retired less than 6 months ago. So far we have spent whatever we want to without worrying about it. We're spending more on travel & dining out, less on gas, dry cleaning and a few other areas. In total, we're spending about what we expected, which is roughly 10% more than we spent while w*rking. It probably helped that I had to take a lump sum payout from a deferred comp plan so we have been living on that without having to withdraw funds from our remaining portfolio. Plus the market's performance has helped. I'm sure when the inevitable market correction happens, we will reduce our discretionary spending to avoid selling assets at a loss. We do have a reserve set aside in a short term bond fund to carry us through a correction, but even so I think we'll be more conservative with spending if we see a large drop in our portfolio value. So far our WR has been about 4%, which will decrease when we start taking my pension and SS.
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04-21-2017, 05:25 AM
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#33
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gone traveling
Join Date: Nov 2014
Posts: 435
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2 years AND 21 days retired. I've bought a new motorcycle, twice. I bought a new Transit van...and then a new vette, and i'm still throwing money into savings every month. my $400k nest egg remains untouched.
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04-21-2017, 05:40 AM
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#34
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Thinks s/he gets paid by the post
Join Date: Oct 2010
Posts: 2,464
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Quote:
Originally Posted by clobber
Ohh - and you know what? If you are having trouble spending your budget, that means you don't need a budget!! Just spend freely and check the account balance every month to ensure you are not off the rails. This completely goes against virtually every forum member's rules to live by.
I realize this post might come off somewhat like I am attacking you, but I am not. I'm really attacking me. When I read your post it sounded exactly like me. So I am giving myself some terse advice.
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This is us, we have a big number that we have never hit for spending in 11 years, so now we just spend as we want.
__________________
For me experiences are not good or bad, just different
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04-21-2017, 06:03 AM
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#35
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Recycles dryer sheets
Join Date: Jan 2014
Posts: 406
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Quote:
Originally Posted by Dash man
Start planning a remodel. You'll learn how to spend very quickly.
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You got that right. We are doing a major remodel plus a new driveway. Despite DIYing most of it and carefully shopping for materials we are spending like drunken sailors.
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04-21-2017, 06:17 AM
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#36
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Thinks s/he gets paid by the post
Join Date: Oct 2012
Location: Colorado Mountains
Posts: 3,165
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Quote:
Originally Posted by kitesurfer2
2 years AND 21 days retired. I've bought a new motorcycle, twice. I bought a new Transit van...and then a new vette, and i'm still throwing money into savings every month. my $400k nest egg remains untouched.
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Can I assume you have a very good pension or rentals or some other income stream?
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04-21-2017, 06:21 AM
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#37
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Apr 2010
Posts: 5,862
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I am about to get a quick lesson. Moving to a new home in two months. DW plans to buy a load of new furniture. She has good taste and likes quality product so it won't be inexpensive. We have not bought much furniture over the past 10 years. We tend to buy higher end product that lasts so I guess that it is time.
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04-21-2017, 06:35 AM
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#38
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,586
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Quote:
Originally Posted by brett
I am about to get a quick lesson. Moving to a new home in two months. DW plans to buy a load of new furniture. She has good taste and likes quality product so it won't be inexpensive. We have not bought much furniture over the past 10 years. We tend to buy higher end product that lasts so I guess that it is time.
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This is one reason I don't see downsizing our home as a source of funds. Between the cost of selling, moving, and furnishing / setting up the new home, a fair portion of the difference in price between the old and new disappears.
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04-21-2017, 07:01 AM
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#39
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Quote:
Originally Posted by MichaelB
This is one reason I don't see downsizing our home as a source of funds. Between the cost of selling, moving, and furnishing / setting up the new home, a fair portion of the difference in price between the old and new disappears.
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Doesn't that depend on how far you are willing to downsize?
__________________
Numbers is hard
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04-21-2017, 07:36 AM
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#40
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Full time employment: Posting here.
Join Date: Dec 2015
Posts: 617
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Quote:
Originally Posted by hgm735
Yes, I am miserly because I will always be alone. The money I have will need to last me for the rest of my life - even though my health issues are supposed to trim 20+ years off my life expectancy on average - still worried about outliving money!
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I am alone too. It does add an extra level of caution. No safety net. I was thinking about a will the other day, although no immediate need, and I will actually have to do a little research to figure out who the closest alive next-of-kin is.
I spent completely out of savings for retirement year one, and the only non-necessity was for a new iMac when my laptop died. My first instinct was to scrounge around for used.
I'm in year 2 now and started "paying myself" with direct deposit dividends and cap gains that are going to get taxed anyway. So far that hasn't made a dent in the portfolio.
OP, I think others are right to tell you that it could take a long period of adjustment to see that you will still be OK if you spend a little. We are going against a lifetime of non-spending.
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