Too Frugal - Anybody Else Struggle Spending Too LITTLE?

[NW-Bound]

Wow, if BTD is WR over 4%, I haven't done that since I first retired and performed 2 home rehabs in 3 years.

(Don't tell RobbieB about the 4% rule of BTD. After all, BTD looms large in his legend!)

If I remember right, Robbie has routinely gone over 4% WR.

He's not a scaredy cat, like we are.

 

[RobbieB]

I was a scaredy cat and told my wife "this is unsustainable"

But the market made me more dough than we could spend.

Before that is...

But I did buy a big boat right on the top!

Yeah, nice timing eh -

 

[street]

Frugal isn't something you can break easily IMO. You have it or you don't. I feel as I get older spending does come a little easier. Really what is the purpose to keep saving and not enjoy some of it because you want to be the richest person in the grave.

It maybe that we still want that title of still having that first penny and having all that money that is hard not to give up.

I give more away than I spend the last few years. It is a very hard thing to do but I can and doesn't affect my life style. It still hurts to do so because of the frugal life I lived.

 

[WWDog]

Frugal will soon become the new in thing with the economy headed towards conditions it hasn't been in for a long time. For those thinking about increasing spending those hard earned dollars on frivolous items and services, you could be throwing away the safety net you might need in the future. My spending has turned toward what I might need to survive and prosper in uncertain economic times.

 

[Koolau]

Frugal will soon become the new in thing with the economy headed towards conditions it hasn't been in for a long time. For those thinking about increasing spending those hard earned dollars on frivolous items and services, you could be throwing away the safety net you might need in the future. My spending has turned toward what I might need to survive and prosper in uncertain economic times.

I find myself torn between either slipping back into overly frugal ways (like preparing for FIRE) and trying to spend those dollars before they become useless due to inflation. It's like the angel on one shoulder and the devil on the other. Except this time, I don't know which one is right. YMMV

 

[brett]

No. Just came back from a month in Portugal. Planning for six weeks or so in Greece in the fall and a snowbirding in Thailand/SE Asia.

Everything is more expensive. Especially air and car rentals.

Look on the bright side. We have had 10-12 years of low inflation and above average investment returns.

Have to take the bad with the good and move forward with our retirement lives.

 

[Koolau]

No. Just came back from a month in Portugal. Planning for six weeks or so in Greece in the fall and a snowbirding in Thailand/SE Asia.

Everything is more expensive. Especially air and car rentals.

Look on the bright side. We have had 10-12 years of low inflation and above average investment returns.

Have to take the bad with the good and move forward with our retirement lives.

True. Who would have guessed the party following 2008 would last this long? YMMV

 

[street]

No. Just came back from a month in Portugal. Planning for six weeks or so in Greece in the fall and a snowbirding in Thailand/SE Asia.

Everything is more expensive. Especially air and car rentals.

Look on the bright side. We have had 10-12 years of low inflation and above average investment returns.

Have to take the bad with the good and move forward with our retirement lives.

I agree. If a good plan was in place before retirement on expenses and how to maintain your current lifestyle there shouldn't be an issue in down times. I understand the frugal genes we inherited will always be that voice talking to us.
A good plan before retirement should always be on the conservative side and planned for the worst-case scenario. IMO
I don't believe the size of portfolio makes any difference it is how you slice and dice that plan.

 

[audreyh1]

Look on the bright side. We have had 10-12 years of low inflation and above average investment returns.

Have to take the bad with the good and move forward with our retirement lives.

Definitely!

There is pent up price pressure as companies have kept prices down for a very long time. Now there is scarcity plus supply chains working poorly, reduced available labor and their costs have risen, so of course they are going to push through price increases.

 

[NW-Bound]

Share the wealth!

 

[meleana]

My husband and I are in our mid- late 60's and we can't seem to change. Our FA tells us he wants us to have a good time and spend money (claims we have plenty! LOL!) and not worry, but our nature is to check prices and track our spending and deprive ourselves of some things simply because we think the prices are outrageous.

 

[Chuckanut]

Personally, I regret tossing out my Joy of Cooking edition that included instructions for skinning and cooking a squirrel. I have an ample source of nearly free animal protein right outside my back door.

 

[MarieIG]

No desire to BTD to get stuck in a airport somewhere. I am not even going to consider stepping foot in an airport this summer (except to pick up DS #6 when he gets leave).

This weekend, back yard BBQs with family and friends. I like it!

My next trips will involve Florida and Arizona to visit kiddos. Since we would be staying a number of weeks (babies are involved) we will drive as I cannot jam my, um, paraphernalia, into a tiny bag.

 

[Time2]

"Struggle to spend Too Little" Probably, but we're homebodies no big desire to travel, we have what we want, so...
In response to "We have had 10-12 years of low inflation and above average investment returns." Absolutely, we hit our $1M at the end of 2011.
The market, and working until 2018, would have tripled that, except for $300k of tuition, which we could easily afford. Even with the market down, we are still at 37 times our spending. I'm sure many would say spend more, but on what? Our first priority would be our kids, especially the one that didn't get the $300k spent on them. Maybe when the market comes back, I'll buy that lathe I have wanted! I will be buying a new drill press and Band saw, but those are minor expenses compared to the lathe I want.

 

[Walt34]

"Struggle to spend Too Little" Probably, but we're homebodies no big desire to travel, we have what we want, so...

Pretty much the same here. During the lockdowns except for missing family gatherings we hardly noticed it. Or cared.

 

[Sunset]

I feel I've been spending like a drunken sailor, as last month I spent $5.5K , mostly on solar and boat expenses.

Yet when I looked at my YTD spending since we are 1/2 way through the year, it totals to $13K

<edit>
DW pays the property tax, income tax, and utilities, and I pay most everything else, I don't know what her spending has been so far.

 

[Badger]

My husband and I are in our mid- late 60's and we can't seem to change. Our FA tells us he wants us to have a good time and spend money (claims we have plenty! LOL!) and not worry, but our nature is to check prices and track our spending and deprive ourselves of some things simply because we think the prices are outrageous.

Do what is comfortable for you. If you are the one with money in hand then you are the one that has control and there are usually other options. At times I will pass on a purchase for the same reason. I hate feeling like I am being taken advantage.

Cheers!

 

[Koolau]

My husband and I are in our mid- late 60's and we can't seem to change. Our FA tells us he wants us to have a good time and spend money (claims we have plenty! LOL!) and not worry, but our nature is to check prices and track our spending and deprive ourselves of some things simply because we think the prices are outrageous.

I'm not sure why, but I'm surprised a FA would advise you to spend. Just doesn't seem part of the duty of a FA unless you asked the question "How much can we spend?" I assume you have at least some non-professional (friendly) relationship with your FA beyond his professional relationship. None of my business, of course, but just curious why he would take an interest in your spending habits.

 

[Winemaker]

I'm not sure why, but I'm surprised a FA would advise you to spend. Just doesn't seem part of the duty of a FA unless you asked the question "How much can we spend?" I assume you have at least some non-professional (friendly) relationship with your FA beyond his professional relationship. None of my business, of course, but just curious why he would take an interest in your spending habits.

I had a tax accountant for years to help me with the rentals. She then got he CFP credentials and a whole lot more. Since I was a tax client she offered to run my numbers on her software. When she called me back for the overview, she told me and DW, that we were golden, retire and start spending. I was 50 at the time and noticed she never put all of my numbers in or any of DW's, into her software program. How could she have been so careless, I thought. Incomplete data, garbage in, garbage out. I didn't trust her advice and worked another 6 years.

I should have taken her early advice. I'm now fighting tax torpedoes, IRMAA penalties, Part D IRMAA penalties, Roth Conversions into ugly zones. We've been blessed, and I know I shouldn't complain.

 

[Palmtree]

We just spent 5 figures on a long delayed trip to europe. Normally we are Rick Steves, low budget travelers but this time we splurged and booked a week long cruise on the Adriatic followed by a two week stay in a villa in Tuscany.

We lucked out on the air in three ways.
1: We used credit card points for the major hops back and forth across the pond.
2: I've read about all the hundreds of flights cancelled. All 7 of of our flights were slightly delayed but they did happen.
3: We booked a window and aisle seats for both legs to and from europe. Even though both flights were close to full, we lucked up and the center seat remained empty on both legs.

 

[Koolau]

We just spent 5 figures on a long delayed trip to europe. Normally we are Rick Steves, low budget travelers but this time we splurged and booked a week long cruise on the Adriatic followed by a two week stay in a villa in Tuscany.

We lucked out on the air in three ways.
1: We used credit card points for the major hops back and forth across the pond.
2: I've read about all the hundreds of flights cancelled. All 7 of of our flights were slightly delayed but they did happen.
3: We booked a window and aisle seats for both legs to and from europe. Even though both flights were close to full, we lucked up and the center seat remained empty on both legs.

Better buy a lotto ticket - unless you think you've used up all your luck!

Seriously, just getting a flight these days is a real exercise in luck. Good on you.