|
|
12-17-2004, 10:45 AM
|
#1
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,719
|
Compulsive Saving and ER
I've been struggling with the concepts of compulsive saving for ER and enjoying life in the present. Has anyone encountered this dichotomy, and if so, how did you deal with it?
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
Re: Compulsive Saving and ER
12-17-2004, 10:58 AM
|
#2
|
Thinks s/he gets paid by the post
Join Date: Feb 2004
Posts: 2,670
|
Re: Compulsive Saving and ER
It's like a food diet. *If you completely deprive yourself it won't work in the long run.
Just like you should always put a little treat in your meal once a day or once a week, you should also have a "travel and entertainment" line in your budget.
The key word for long-term success is moderation with a slight bias toward savings and away from wasting.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 11:21 AM
|
#3
|
Recycles dryer sheets
Join Date: Nov 2004
Posts: 107
|
Re: Compulsive Saving and ER
Clean Living,,, In Moderation
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 11:34 AM
|
#4
|
|
Re: Compulsive Saving and ER
Everything in moderation, including moderation!
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 12:52 PM
|
#5
|
Recycles dryer sheets
Join Date: Aug 2004
Posts: 218
|
Re: Compulsive Saving and ER
I'm pretty big on living for the present, so I used leverage real estate to accomplish both. It has some risks, but it worked for me. (harder now though IMHO due to the run-up in real estate values).
Don't totally deprive yourself today, cuz you ain't guaranteed tomorrow!
__________________
Life is good.
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 01:18 PM
|
#6
|
Recycles dryer sheets
Join Date: Nov 2004
Posts: 260
|
Re: Compulsive Saving and ER
Oh, boy, do I know where you're coming from on this one!
I get so fixated on FIRE that I hesitate to spend $75 on a piece of software that will be of use in one of my hobbies and overall is just fun to play with.
What I've done for 2005 is sit down and start a "to-buy" list--things that will give me pleasure over the long term or otherwise fit into my goals/FIRE plan--and tell myself that it's okay to buy these things.
The list is about 15 things so far, from the Return of the King extended edition DVD to that piece of software, to a knife sharpener, to a half dozen books. (All the other books I want to read, I will get from the library.)
Will let you know how that goes.
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 01:23 PM
|
#7
|
Recycles dryer sheets
Join Date: Sep 2004
Posts: 250
|
Re: Compulsive Saving and ER
Starting this coming year (January 2005) we're switching to the method of having a fixed percentage of each paycheck go directly to retirement savings and not worry about how we spend the rest.
Actually we've always done the fixed percentage method, but previously we always tried to sock away huge amounts on top of that. I've always been a big believer in balance, but trying to save as much as possible, as quickly as possible ,always meant tough choices when it came to spending money. So I pulled out the spreadsheets, figured out a reasonable savings amount that will get us to our goal, and that will be it. No more guilt about spending as long as we have the money in our checking account.
I think it helps to have a target date for ER. My husband is eligible for his pension in 2017 at age 44, so our savings goals are based around that. I think without a specific date you end up with a goal of "as soon as possible" and that can end up being a grind.
I've said this before, but I also have a strong sense of my own mortality. The idea of saving money and never getting to enjoy life scares me more than not achieving ER.
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 02:13 PM
|
#8
|
|
Re: Compulsive Saving and ER
Quote:
I've said this before, but I also have a strong sense of my own mortality. The idea of saving money and never getting to enjoy life scares me more than not achieving ER.
|
Hi FlowGirl,
Take care not to confuse spending money with happiness. One can find plenty of ways to have fun and be fulfilled without spending a fortune. It's a matter of managing one's desires for buying "stuff" and avoiding exposure to advertising which tempts one to overspend.
Good luck.
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 03:01 PM
|
#9
|
|
Re: Compulsive Saving and ER
Flowgirl's story is my story. Dying never scared me.
Not doing what I wanted before I depart scared
the hell out of me.
JG
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 03:42 PM
|
#10
|
Recycles dryer sheets
Join Date: Sep 2004
Posts: 250
|
Re: Compulsive Saving and ER
Quote:
Hi FlowGirl,
Take care not to confuse spending money with happiness. *One can find plenty of ways to have fun and be fulfilled without spending a fortune. *It's a matter of managing one's desires for buying "stuff" and avoiding exposure to advertising which tempts one to overspend.
Good luck.
|
I totally agree. Fortunately the spouse and I are not big into having "stuff." We don't have TV, and I hate shopping (except for food), which I think helps a lot.
But we do like to travel and so we take at least one big overseas vacation each year. Local trips and camping are fun, but the month we spent backpacking around Italy or cycling around Ankor Wat were quite a bit more expensive. They were also worth every penny.
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 04:29 PM
|
#11
|
|
Re: Compulsive Saving and ER
I hate shopping too, but "no TV"? I have thought about it from time to time. A month ago I counted and between here and our condo we owned 8 TVs. Have since sold 2 of them. OTOH, we have very little invested
in them, so the only downside is time stolen from other
more beneficial activities. I actually enjoy TV, but can take
it or leave it with very little angst.
JG
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 05:32 PM
|
#12
|
Recycles dryer sheets
Join Date: Sep 2004
Posts: 250
|
Re: Compulsive Saving and ER
Quote:
*I actually enjoy TV, but can take it or leave it with very little angst.
JG
|
I wish I had this attitude - if I did then we'd probably have TV. The problem for me is that for the past several years I've been working from home and it is simply too tempting to turn on the TV in the middle of the day and get sucked into whatever program happens to be on. I have no discipline when it comes to turning off dumb shows and if I have TV then I don't get any work done. We do have an actual television set that we use for watching DVDs on the weekends, but its not hooked up to antenna or cable.
The advantages of no TV are that I don't have a cable bill, don't get exposed to advertising, and the spouse and I spend more time talking and reading now. The main disadvantage is feeling out of the loop when it comes to pop culture. I'm not sure we will spend the rest of our lives on a "no TV" diet but it works for us right now.
|
|
|
Re: Compulsive Saving and ER
12-17-2004, 11:07 PM
|
#13
|
|
Re: Compulsive Saving and ER
[quote]
it is simply too tempting to turn on the TV in the middle of the day and get sucked into whatever program happens to be on. *I have no discipline when it comes to turning off dumb shows and if I have TV then I don't get any work done.
quote] I can relate to this! I am a product of the 60's when TV was somewhat new in every household and it was on all the time. We just recently got cable and I have to really limit myself. I also happen to be a flipper. Can't stand the commercials so I change channels constantly. No one can stand to watch with me.
Judy (wonder what's on HGTV?)
|
|
|
Re: Compulsive Saving and ER
12-19-2004, 12:33 PM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,719
|
Re: Compulsive Saving and ER
Quote:
Starting this coming year (January 2005) we're switching to the method of having a fixed percentage of each paycheck go directly to retirement savings and not worry about how we spend the rest.
Actually we've always done the fixed percentage method, but previously we always tried to sock away huge amounts on top of that. I've always been a big believer in balance, but trying to save as much as possible, as quickly as possible, always meant tough choices when it came to spending money. So I pulled out the spreadsheets, figured out a reasonable savings amount that will get us to our goal, and that will be it. No more guilt about spending as long as we have the money in our checking account.
I think it helps to have a target date for ER. My husband is eligible for his pension in 2017 at age 44, so our savings goals are based around that. I think without a specific date you end up with a goal of "as soon as possible" and that can end up being a grind.
I've said this before, but I also have a strong sense of my own mortality. The idea of saving money and never getting to enjoy life scares me more than not achieving ER.
|
Very interesting solution to the problem.
As the years have gone by, I've noticed that my aggressive saving, while certainly smart over the past 4+ years, has in some ways cost me opportunities to enjoy life as much as I would like. Originally my savings goal would have put me at the $1 million mark at age 38-39 (I'm 34 now), but I don't think I can keep up an aggressive savings plan for the next five years. I don't want to begin living my life at age 40 with $1 million in the bank. No matter how much money you have, you still can't buy back the time.
Perhaps scaling back the aggressive savings is in order. You don't need $1 million to be financially independent. That is to say, you don't need $1 million to have the financial freedom to work at a job you like, spend time with family and friends, enjoy hobbies, etc...
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
|
|
|
Re: Compulsive Saving and ER
12-19-2004, 01:56 PM
|
#15
|
Recycles dryer sheets
Join Date: Jan 2004
Posts: 144
|
Re: Compulsive Saving and ER
We have our savings plan on track, but it is pretty boring not being able to travel. We are squeezed right now because I am trying to 1. save for retirement, 2. pay off credit card debt, and 3. save for a new roof for the house.
Saving for retirement is direct deducted/deposited, so that is on autopilot. The credit cards are almost paid off, and probably will make the last payment in January, which will free up monthly cash to save for the roof, which we hope to do this spring, partly with heloc. But until then there is no fun money.
One thing that prevented a mutiny is that we had a budget for christmas cash, saved up over a few months. It was good to be able to hand the frau a wad of cash to go christmas shopping.
After the roof, we need to build up the emergency fund and will need a vehicle, but we are going to have to increase the household budget and save some vacation money too.
If we didn't have a budget laid out, we would not be able to resist impulse spending, and these expenditures would be made without much consideration or weighing of options. By using a spreadsheet budget, we can at least decide what is most important.
Come February, its going to be tough not to grab the roof money and head somewhere warm and sunny where the blizzards don't howl. Maybe next year!
__________________
Skylark<br />Time flies like an arrow.<br />https://cruisenews.net/independence<br /><br />Poverty is not the absence of goods, but rather the overabundance of desire. <br />- Plato<br />
|
|
|
Re: Compulsive Saving and ER
12-19-2004, 02:08 PM
|
#16
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,719
|
Re: Compulsive Saving and ER
Quote:
This is how I always did it, and it works pretty good. Otherwise, you'd end up having a conversation with yourself at every meal. "Do I really have to eat this Filet Mignon - Rice and Beans would be cheaper"
|
Holy self-doubt Batman I thought only I was thinking along those lines. It's good to know I'm not alone. :P
Seriously though, I've been asking myself that same question in virtually every aspect of my life for the past couple of years. In fact, I've been wondering why I've become so "boring" and/or "cheap", or otherwise can't enjoy life as much as I did previously.
Change is most definitely in order. 8)
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
|
|
|
Re: Compulsive Saving and ER
12-19-2004, 02:39 PM
|
#17
|
Thinks s/he gets paid by the post
Join Date: Oct 2004
Posts: 1,719
|
Re: Compulsive Saving and ER
__________________
He had one of those rare smiles with a quality of eternal reassurance in it . . . It faced, or seemed to face, the whole external world for an instant and then concentrated on you with an irresistible prejudice in your favor. -- The Great Gatsby, F. Scott Fitzgerald
|
|
|
Re: Compulsive Saving and ER
12-20-2004, 04:45 AM
|
#18
|
Recycles dryer sheets
Join Date: Oct 2004
Posts: 190
|
Re: Compulsive Saving and ER
Quote:
8) *I've come to realize that saving isn't a race against anyone else (a reverse "keeping up with the Joneses"), but rather an exercise in self-discipline and balance. *
|
Wise, Grasshopper.
__________________
www.strawbaleredux.blogspot.com
|
|
|
Re: Compulsive Saving and ER
12-20-2004, 07:36 AM
|
#19
|
|
Re: Compulsive Saving and ER
This past year I sat down and got our finances and investments organized, and while we were already good savers I got so excited about ER that I went overboard on scrimping.
We usually take one big overseas trip per year but this year I hemmed and hawed when the issue of planning a trip came up (because I secretly wanted to save the extra $$) and my husband is disappointed that we won't be having our annual adventure. Next year we'll go back to taking our big trip.
I think we'll go back to maxing 401Ks, Roth IRAs, and a fixed amount of additional monthly savings and stop scrimping so much.
|
|
|
Re: Compulsive Saving and ER
12-20-2004, 11:48 AM
|
#20
|
Thinks s/he gets paid by the post
Join Date: Feb 2003
Location: Nomadic in the Rockies
Posts: 2,720
|
Re: Compulsive Saving and ER
Good thread. It's easy to get caught up in calculation, planning and hoarding every investment dollar.
What's funny is when you're deeply in debt you know where to put your money. When you've got after-tax and pre-tax savings and no debt you start second guessing yourself. I keep having to remind myself how well off I am.
Another odd thing is that I spent so little (relative to before I decided to eliminate debt) for 3-5 years I'm now having trouble finding worthwhile ways to spend my fun money. I suppose it's a phase I'll get through.
I have a list of things I want to buy, but I made it so when I have an urge to buy something I can refer to the list and decide if what I'm wanting now is more important that what's already on the list. Perhaps I should schedule/budget a periodic purchase from my list (assuming it will add enjoyment to my life).
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|