Too Frugal - Anybody Else Struggle Spending Too LITTLE?

[Andre1969]

Quote:

Originally Posted by Music Lover A former co-worker passed away at age 59 this past summer. I'd known him for 30 years and was familiar with his financial situation. He retired early taking a pension penalty at age 50 but had about $500,000 in savings. He also owned a paid off house worth about $300k. He lived comfortably off his reduced pension because he had very few hobbies and no expensive tastes. He could have enjoyed some of his money but chose to let it sit there. His sister and her husband are the beneficiaries of his frugal lifestyle.

That is a sad story, of someone's life being cut short at a young age. But, I guess the silver lining is that, at least he retired when he did, and at least got nine years of retirement in before he died. I'm hoping they were nine good years, at least!

[Major Tom]

Quote:

Originally Posted by NW-Bound Ah, I don't know anybody who does not want more. The truth is that we all want more but vary in the effort we want to expend to get it.

I think that's true, in the sense that few folk would turn down more if they were offered it. Many of us are happy with what we have, but we wouldn't say no to a little more. We say it would be good to have a house with just a little more room, to make more money, to have a better job, or to have more savings. How many are motivated to actually do something to make that a reality though? That's where the second part of your statement comes into play.

To me, that's the test of whether somebody really wants something - whether they are prepared to do what it takes to get it. I mean, I would quite like to have $100M in the bank. Heck if I'm going to do what it takes to get there though

[street]

Quote:

Originally Posted by Turbo29 At a party given by a billionaire on Shelter Island, Kurt Vonnegut informs his pal, Joseph Heller, that their host, a hedge fund manager, had made more money in a single day than Heller had earned from his wildly popular novel Catch-22 over its whole history. Heller responds,“Yes, but I have something he will never have — ENOUGH.”

That is good! Thanks for sharing that.

[street]

Quote:

Originally Posted by Major Tom I think that's true, in the sense that few folk would turn down more if they were offered it. Many of us are happy with what we have, but we wouldn't say no to a little more. We say it would be good to have a house with just a little more room, to make more money, to have a better job, or to have more savings. How many are motivated to actually do something to make that a reality though? That's where the second part of your statement comes into play. To me, that's the test of whether somebody really wants something - whether they are prepared to do what it takes to get it. I mean, I would quite like to have $100M in the bank. Heck if I'm going to do what it takes to get there though

Some more great words of wisdom.

[NW-Bound]

Quote:

Originally Posted by Major Tom I think that's true, in the sense that few folk would turn down more if they were offered it. Many of us are happy with what we have, but we wouldn't say no to a little more. We say it would be good to have a house with just a little more room, to make more money, to have a better job, or to have more savings. How many are motivated to actually do something to make that a reality though? That's where the second part of your statement comes into play. To me, that's the test of whether somebody really wants something - whether they are prepared to do what it takes to get it. I mean, I would quite like to have $100M in the bank. Heck if I'm going to do what it takes to get there though

I don't even know what I can do to get $100M. Banks don't keep that much in cash at their counter registers for me to rob.

[Music Lover]

Quote:

Originally Posted by Andre1969 That is a sad story, of someone's life being cut short at a young age. But, I guess the silver lining is that, at least he retired when he did, and at least got nine years of retirement in before he died. I'm hoping they were nine good years, at least!

Another friend and I did discuss that...at least he got 9 years of retirement by retiring early. He could have stayed until 55 and cut his retirement in half.

[NW-Bound]

Quote:

Originally Posted by Music Lover A former co-worker passed away at age 59 this past summer. I'd known him for 30 years and was familiar with his financial situation. He retired early taking a pension penalty at age 50 but had about $500,000 in savings. He also owned a paid off house worth about $300k. He lived comfortably off his reduced pension because he had very few hobbies and no expensive tastes. He could have enjoyed some of his money but chose to let it sit there. His sister and her husband are the beneficiaries of his frugal lifestyle.

Quote:

Originally Posted by Andre1969 That is a sad story, of someone's life being cut short at a young age. But, I guess the silver lining is that, at least he retired when he did, and at least got nine years of retirement in before he died. I'm hoping they were nine good years, at least!

Quote:

Originally Posted by Music Lover Another friend and I did discuss that...at least he got 9 years of retirement by retiring early. He could have stayed until 55 and cut his retirement in half.

But such is life's uncertainty. There's no guarantee of anything. Will we say that people who died young could have retired at teenage years and not bother to go to school at all. Sure, they should but who knows exactly when his life is going to end?


My wife quit work at 50 because her job was so stressful. I started working parttime from 47 and continued till 55 because we still had two college-aged children. It would be stressful during the Great Recession if I had no earned income, and my stash was only 1/3 its size now.

Boom, 6 months after quitting work, I was diagnosed with a life-threatening disease. Of course, I survive it with surgeries and treatments, and am still here, but the risk of not making it was 1/3 and I might just be that 3rd guy.

Anyway, I had enjoyed life enough till then, and if I had to go, would not regret not quitting earlier. You make decisions knowing what you know now, and there's no point in second-guessing yourself later.

[teetee]

Quote:

Originally Posted by Andre1969 That is a sad story, of someone's life being cut short at a young age. But, I guess the silver lining is that, at least he retired when he did, and at least got nine years of retirement in before he died. I'm hoping they were nine good years, at least!

You assume that he didn't plan to die that young. Maybe after 9 years of retirement, he thought he better not to waste ant more time...

Sent from my Moto G (5) Plus using Early Retirement Forum mobile app

[Graybeard]

I like these threads, I know I'm not alone! In many posts I read a sentence or two that described me to a tee. It's late and time for bed, if this is still running tomorrow I may add my 2 cents, plus or minus a few dollars!

[GravitySucks]

Quote:

Originally Posted by street ^ Lol. That is a good question! I might start digging that hole up high in those rocks this spring. I'm thinking I might get by cheap for LTC with no money. I'll just bury it and leave a map to the kinfolks. Lol

Start digging now.
I hear that Medicaid 5 year look back is quite thorough!

[Music Lover]

Quote:

Originally Posted by teetee You assume that he didn't plan to die that young. Maybe after 9 years of retirement, he thought he better not to waste ant more time...

He didn't like work and left as soon as he was able to collect a pension. It was greatly reduced but he didn't care because he spent little and had savings. He died from a heart attack.

[street]

Quote:

Originally Posted by GravitySucks Start digging now. I hear that Medicaid 5 year look back is quite thorough!

True, on the look back.

Not sure what Medicaid could do if the money is out of an institution with no records? Really would have nothing to go after can't proof if there is any money left. Lol

Maybe it was spent on wild women, whiskey and poker. Lol

[razztazz]

Quote:

Originally Posted by Music Lover I used to have a $500 acoustic guitar and it did exactly what I needed it to do. But then I sold it and bought a $1700 guitar. It sounds better, is easier to play, and looks nicer.

Don't want to drag this off topic too much. When you say "easier to play" what exactly are you referring to? A lower action or something else?

[Music Lover]

Quote:

Originally Posted by razztazz Don't want to drag this off topic too much. When you say "easier to play" what exactly are you referring to? A lower action or something else?

It has lower action and a slimmer neck. Anyone can make a guitar with a slimmer neck so perhaps the more expensive guitars are built to more exacting tolerances and with more care that allows them to take additional steps to make them more playable.

I'm no expert but have found that as a general rule, less expensive guitars are built "sturdier"...thicker wood throughout (including the neck). The goal is to make a playable guitar at an affordable price. Maybe a similar comparison would be a heavier and more sturdy mountain bike for $600 vs. a much lighter $3000 bike.

[Major Tom]

Quote:

Originally Posted by NW-Bound I don't even know what I can do to get $100M. Banks don't keep that much in cash at their counter registers for me to rob.

In the 1990's, I lived in Hollywood, just a block from Hollywood Blvd. There was a bank on the corner. Riding my bike one day, as I passed the bank, I saw a group of men lying spread-eagled on the ground, with stockings pulled over their heads. Cops were standing over them, with guns drawn. It all looked quite dramatic and very filmlike. However, these were real LAPD officers, and there was no film or lighting equipment in sight. It was the real thing.

As you said, I also have a sneaky feeling that even if they'd gotten away with it, they wouldn't have scored anything close to $100M - not even a single million! Investing really is a wonderfully easy (and legal) way to make money, if you have the patience.

[foxfirev5]

Quote:

Originally Posted by street True, on the look back. Maybe it was spent on wild women, whiskey and poker. Lol

Yep. And they wasted the rest.

[NW-Bound]

Quote:

Originally Posted by Major Tom In the 1990's, I lived in Hollywood, just a block from Hollywood Blvd. There was a bank on the corner. Riding my bike one day, as I passed the bank, I saw a group of men lying spread-eagled on the ground, with stockings pulled over their heads. Cops were standing over them, with guns drawn. It all looked quite dramatic and very filmlike. However, these were real LAPD officers, and there was no film or lighting equipment in sight. It was the real thing. As you said, I also have a sneaky feeling that even if they'd gotten away with it, they wouldn't have scored anything close to $100M - not even a single million! Investing really is a wonderfully easy (and legal) way to make money, if you have the patience.

I know. I have been doing it.

Don't get anywhere near $100M, but a 7-figure gain in 12 months is quite nice, even if I don't have a need or plan for that money yet.

[Jeb-NY]

Check us off as frugal most of our life and that allowed us to retire at 57 in a relatively expensive part of the country. Could have walked out at 55 and told my boss at the time if he wanted me to keep working keep me happy and he did for 2 more years until the company made me an offer I couldn't refuse.

After almost 10 years staying put and still living pretty frugal we moved to a much lower cost of living area, that wasn't the primary reason, I told people the move was because we wanted less snow, less taxes and less politics. We checked off all those in our move. We also made the decision to spend more money. Bought house worth twice what we sold the old one for, started making changes to the house and property that we wanted, now instead of waiting. Buying what we wanted when we wanted it. The biggest shift was, we don't do things we don't like any more. Lawn care, all hired, general repairs in fields I don't like, hired, etc. We still don't spend a third what we could but after all the years of being frugal you don't spend money just to spend. We do eat out more leaving bigger tips, stay at better motels, give more to charity, bigger checks for birthdays and Christmas......

Still have a lot more than we started with when we retired 16 years ago.

[street]

Quote:

Originally Posted by NW-Bound I know. I have been doing it. Don't get anywhere near $100M, but a 7-figure gain in 12 months is quite nice, even if I don't have a need or plan for that money yet.

I have not had a 7-figure gain in one fiscal year. You have done well making a million plus in one year.

Outstanding!!! It takes a lot to make a lot.

[JeKa]

I read something a few weeks ago that really hit home. There is only three things that can happen to your money. You can spend it. Your beneficiaries can spend it, or the government can spend it. I would recommend you choose wisely.[/QUOTE]


X100

Set yourself a comfortable budget. Spend what you want from that. At the end of the year, gift the balance to the kids, donate to charity, etc. As long as the bottom line is still growing, everything is AOK.