When did you start spending more and saving less?

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mak1277
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Re: When did you start spending more and saving less?

Post by mak1277 » Fri Apr 19, 2019 9:06 am

I have always spent the amount that I wanted to spend to live my life.

When I didn't make much, I didn't save much. When my salary increased, I started saving. When I retire, I'll go back to spending more than I save.

"pay yourself first" to me means you live the life you want to live today, not worry about tomorrow that might never get here.

Presintense
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Re: When did you start spending more and saving less?

Post by Presintense » Fri Apr 19, 2019 9:20 am

September 19, 2016. Had saved and invested for over twenty years. Impossible to know if it will have been enough. Since then I have been paying for two kids' private college educations in addition to all of our other regular expenses which are not low. We are no longer saving and actually spending way more (especially on education). Surprisingly our net worth has increased yet I do not suggest spending more and saving less to achieve anything other than poverty despite our recent experience to the contrary.
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TheTimeLord
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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 9:21 am

MikeG62 wrote:
Fri Apr 19, 2019 8:12 am
While working we lived well below our means, but far from frugally. So we pretty much always bought the things we wanted. There was never a point where we felt we could/should loosen our belts to spend more. Balance is key IMHO.
This is our case but given the choice between piling it deeper and deeper and loosening the belt some, I am opting for loosening the belt and investing in the present. That said our savings rate will remain significant for the remainder of our work lives in most circles, just maybe not on this forum.
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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 9:24 am

Mofritty wrote:
Fri Apr 19, 2019 9:20 am
September 19, 2016. Had saved and invested for over twenty years. Impossible to know if it will have been enough. Since then I have been paying for two kids' private college educations in addition to all of our other regular expenses which are not low. We are no longer saving and actually spending way more (especially on education). Surprisingly our net worth has increased yet I do not suggest spending more and saving less to achieve anything other than poverty despite our recent experience to the contrary.
It is hard to see how any saving, even saving less is the road to poverty.
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Re: When did you start spending more and saving less?

Post by Presintense » Fri Apr 19, 2019 9:48 am

TheTimeLord wrote:
Fri Apr 19, 2019 9:24 am
Mofritty wrote:
Fri Apr 19, 2019 9:20 am
September 19, 2016. Had saved and invested for over twenty years. Impossible to know if it will have been enough. Since then I have been paying for two kids' private college educations in addition to all of our other regular expenses which are not low. We are no longer saving and actually spending way more (especially on education). Surprisingly our net worth has increased yet I do not suggest spending more and saving less to achieve anything other than poverty despite our recent experience to the contrary.
It is hard to see how any saving, even saving less is the road to poverty.
...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 9:55 am

Mofritty wrote:
Fri Apr 19, 2019 9:48 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:24 am
Mofritty wrote:
Fri Apr 19, 2019 9:20 am
September 19, 2016. Had saved and invested for over twenty years. Impossible to know if it will have been enough. Since then I have been paying for two kids' private college educations in addition to all of our other regular expenses which are not low. We are no longer saving and actually spending way more (especially on education). Surprisingly our net worth has increased yet I do not suggest spending more and saving less to achieve anything other than poverty despite our recent experience to the contrary.
It is hard to see how any saving, even saving less is the road to poverty.
...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
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Re: When did you start spending more and saving less?

Post by smitcat » Fri Apr 19, 2019 10:10 am

TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am
Mofritty wrote:
Fri Apr 19, 2019 9:48 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:24 am
Mofritty wrote:
Fri Apr 19, 2019 9:20 am
September 19, 2016. Had saved and invested for over twenty years. Impossible to know if it will have been enough. Since then I have been paying for two kids' private college educations in addition to all of our other regular expenses which are not low. We are no longer saving and actually spending way more (especially on education). Surprisingly our net worth has increased yet I do not suggest spending more and saving less to achieve anything other than poverty despite our recent experience to the contrary.
It is hard to see how any saving, even saving less is the road to poverty.
...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.

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Re: When did you start spending more and saving less?

Post by Presintense » Fri Apr 19, 2019 10:13 am

TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am
Mofritty wrote:
Fri Apr 19, 2019 9:48 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:24 am
Mofritty wrote:
Fri Apr 19, 2019 9:20 am
September 19, 2016. Had saved and invested for over twenty years. Impossible to know if it will have been enough. Since then I have been paying for two kids' private college educations in addition to all of our other regular expenses which are not low. We are no longer saving and actually spending way more (especially on education). Surprisingly our net worth has increased yet I do not suggest spending more and saving less to achieve anything other than poverty despite our recent experience to the contrary.
It is hard to see how any saving, even saving less is the road to poverty.
...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
Duly noted. Our only experience of choosing to spend more and save less due to our feeling of financial independence is the one I submitted. Admittedly the increment is large and evidently larger than you had in mind. I overlooked any mention of gradual increase restricted to discretionary items and likely read the post too quickly to get its intended flavor. Given this information, I don't have a qualifying reply, but I would bet you a cheeseburger that zero is less than any regardless of what you consider!
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TheTimeLord
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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 10:17 am

smitcat wrote:
Fri Apr 19, 2019 10:10 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am
Mofritty wrote:
Fri Apr 19, 2019 9:48 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:24 am
Mofritty wrote:
Fri Apr 19, 2019 9:20 am
September 19, 2016. Had saved and invested for over twenty years. Impossible to know if it will have been enough. Since then I have been paying for two kids' private college educations in addition to all of our other regular expenses which are not low. We are no longer saving and actually spending way more (especially on education). Surprisingly our net worth has increased yet I do not suggest spending more and saving less to achieve anything other than poverty despite our recent experience to the contrary.
It is hard to see how any saving, even saving less is the road to poverty.
...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.
That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.
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mariezzz
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Re: When did you start spending more and saving less?

Post by mariezzz » Fri Apr 19, 2019 10:25 am

mptfan wrote:
Fri Apr 19, 2019 8:58 am
DonIce wrote:
Thu Apr 18, 2019 3:54 pm
Time2Quit wrote:
Thu Apr 18, 2019 3:47 pm
This is interesting. Each person has a different definition of "enough". It would also be safe to speculate that an overwhelming majority retire when they have enough.
This forum probably gives that impression but I highly doubt this is true among the general population. Most people, especially those with lucrative careers that are most likely to enable savings that are considered "enough", will keep working and accumulating more wealth even if they have more than enough for retirement. And oftentimes people with lucrative and rewarding careers will work well into their 70s.
I agree that some people do this, but I do not agree that most people do this. The data shows that the average person retires around age 62 and most people do not have enough savings to retire and maintain the same lifestyle that they had pre-retirement without rapidly depleting their savings, so most people retire in their early to mid 60's and reduce their spending after retirement out of necessity.
This is true. Only about 4% of social security claimants wait until age 70 to claim SS.

For people who (plan to) wait until after retirement to start spending more: I'd wonder whether you worked too long or gave up too much while working. One caveat here is maybe they worked for the health benefits until they qualified for medicare. But, for some, maxing out retirement options while working also provides an important sense of accomplishment (offsetting forgone spending), whether or not the money is needed. The same could be said for avoiding taxes by using post-tax retirement accounts to defer taxes until one's tax bracket goes down.

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Re: When did you start spending more and saving less?

Post by Presintense » Fri Apr 19, 2019 10:27 am

TheTimeLord wrote:
Fri Apr 19, 2019 10:17 am
smitcat wrote:
Fri Apr 19, 2019 10:10 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am
Mofritty wrote:
Fri Apr 19, 2019 9:48 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:24 am


It is hard to see how any saving, even saving less is the road to poverty.
...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.
That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.
Many of those who replied to your OP replied with a similar response to mine in that retirement precipitated saving less. I cannot speak for them, but it is very likely that they began to save not incrementally less, but way less and even zero as they switched from accumulation to spending. That doesn't make you wrong. I understand what you were looking for and what you weren't and appreciate it entirely.
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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 10:31 am

mptfan wrote:
Fri Apr 19, 2019 8:58 am
DonIce wrote:
Thu Apr 18, 2019 3:54 pm
Time2Quit wrote:
Thu Apr 18, 2019 3:47 pm
This is interesting. Each person has a different definition of "enough". It would also be safe to speculate that an overwhelming majority retire when they have enough.
This forum probably gives that impression but I highly doubt this is true among the general population. Most people, especially those with lucrative careers that are most likely to enable savings that are considered "enough", will keep working and accumulating more wealth even if they have more than enough for retirement. And oftentimes people with lucrative and rewarding careers will work well into their 70s.
I agree that some people do this, but I do not agree that most people do this. The data shows that the average person retires around age 62 and most people do not have enough savings to retire and maintain the same lifestyle that they had pre-retirement without rapidly depleting their savings, so most people retire in their early to mid 60's and reduce their spending after retirement out of necessity.
I would counter and I believe statistics bear out while the first few years of retirement are go-go-go people tend to settle into a quieter and less expensive lifestyle naturally. I think a lot of this is a result of having more time for things like shopping and cooking plus just getting together with people socially in others homes rather than on vacations or cruises.
The average retiree can expect three phases of retirement:
Early retirement — a period of travel, hobbies, and adventure.
Middle retirement — a stage marked by socializing, activity, and relaxation.
Later retirement — a time of winding down, when most of your days are spent at home.
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Re: When did you start spending more and saving less?

Post by mptfan » Fri Apr 19, 2019 10:35 am

TheTimeLord wrote:
Fri Apr 19, 2019 10:31 am
I would counter and I believe statistics bear out while the first few years of retirement are go-go-go people tend to settle into a quieter and less expensive lifestyle naturally. I think a lot of this is a result of having more time for things like shopping and cooking plus just getting together with people socially in others homes rather than on vacations or cruises.
The average retiree can expect three phases of retirement:
Early retirement — a period of travel, hobbies, and adventure.
Middle retirement — a stage marked by socializing, activity, and relaxation.
Later retirement — a time of winding down, when most of your days are spent at home.
I agree, but I don't think your point contradicts mine. The statistics bear out that most people save very little for retirement and are very financially unprepared to retire and maintain the same lifestyle after retirement. Also, I would not equate a quieter lifestyle with a less expensive lifestyle, especially as one ages and medical issues become more prevalent and expensive.
Last edited by mptfan on Fri Apr 19, 2019 10:38 am, edited 1 time in total.

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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 10:37 am

Mofritty wrote:
Fri Apr 19, 2019 10:27 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:17 am
smitcat wrote:
Fri Apr 19, 2019 10:10 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am
Mofritty wrote:
Fri Apr 19, 2019 9:48 am


...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.
That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.
Many of those who replied to your OP replied with a similar response to mine in that retirement precipitated saving less. I cannot speak for them, but it is very likely that they began to save not incrementally less, but way less and even zero as they switched from accumulation to spending. That doesn't make you wrong. I understand what you were looking for and what you weren't and appreciate it entirely.
I was looking for people to discuss a preretirement phase of life where kids are out of the home and entering to adulthood, your financial future is secure yet you are still working and bringing significant income but have a much smaller need/desire for additional savings than you did during your younger life.
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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 10:39 am

mptfan wrote:
Fri Apr 19, 2019 10:35 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:31 am
I would counter and I believe statistics bear out while the first few years of retirement are go-go-go people tend to settle into a quieter and less expensive lifestyle naturally. I think a lot of this is a result of having more time for things like shopping and cooking plus just getting together with people socially in others homes rather than on vacations or cruises.
The average retiree can expect three phases of retirement:
Early retirement — a period of travel, hobbies, and adventure.
Middle retirement — a stage marked by socializing, activity, and relaxation.
Later retirement — a time of winding down, when most of your days are spent at home.
I agree, but I don't think your point contradicts mine. The statistics bear out that most people save very little for retirement and are very financially unprepared to retire and maintain the same lifestyle after retirement.
I think what I was trying to highlight is I am not sure most people want the same lifestyle they had before retirement and the one they want tends to be less expensive.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

smitcat
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Re: When did you start spending more and saving less?

Post by smitcat » Fri Apr 19, 2019 10:45 am

TheTimeLord wrote:
Fri Apr 19, 2019 10:17 am
smitcat wrote:
Fri Apr 19, 2019 10:10 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am
Mofritty wrote:
Fri Apr 19, 2019 9:48 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:24 am


It is hard to see how any saving, even saving less is the road to poverty.
...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.
That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.

"What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification."
Then you would need a purpose for those extra discretionary funds in the present.

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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 10:48 am

smitcat wrote:
Fri Apr 19, 2019 10:45 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:17 am
smitcat wrote:
Fri Apr 19, 2019 10:10 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am
Mofritty wrote:
Fri Apr 19, 2019 9:48 am


...Our current saving is zero. That's less than what it was (much less). Our current spending has increased by over $65,000 annually. That's more than what it was. I don't suggest trying it over the long term despite our fortunate short term result although you are welcome to try it if you like.
The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.
That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.

"What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification."
Then you would need a purpose for those extra discretionary funds in the present.
Yes, the purpose is to increase my enjoyment of the present by adding in some discretionary items and luxuries that I might have denied myself in the past. I guess instead of Me Time you could call it Me Money.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

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Re: When did you start spending more and saving less?

Post by smitcat » Fri Apr 19, 2019 10:50 am

TheTimeLord wrote:
Fri Apr 19, 2019 10:48 am
smitcat wrote:
Fri Apr 19, 2019 10:45 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:17 am
smitcat wrote:
Fri Apr 19, 2019 10:10 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am


The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.
That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.

"What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification."
Then you would need a purpose for those extra discretionary funds in the present.
Yes, the purpose is to increase my enjoyment of the present by adding in some discretionary items and luxuries that I might have denied myself in the past. I guess instead of Me Time you could call it Me Money.
I would not have denied it in the first place, I would spend it now if it lends happiness Based upon your collective posts I would say that I would hope you have heirs, otherwise it will go to strangers.

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Re: When did you start spending more and saving less?

Post by Presintense » Fri Apr 19, 2019 10:51 am

TheTimeLord wrote:
Fri Apr 19, 2019 10:37 am
Mofritty wrote:
Fri Apr 19, 2019 10:27 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:17 am
smitcat wrote:
Fri Apr 19, 2019 10:10 am
TheTimeLord wrote:
Fri Apr 19, 2019 9:55 am


The OP was about people who had felt they had saved enough or feel they are financially independent starting to spending more on discretionary items in the present instead of just continuing to pile it deeper and deeper. Personally, I would not consider saving zero as saving less, it is not saving. I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post.
"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.
That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.
Many of those who replied to your OP replied with a similar response to mine in that retirement precipitated saving less. I cannot speak for them, but it is very likely that they began to save not incrementally less, but way less and even zero as they switched from accumulation to spending. That doesn't make you wrong. I understand what you were looking for and what you weren't and appreciate it entirely.
I was looking for people to discuss a preretirement phase of life where kids are out of the home and entering to adulthood, your financial future is secure yet you are still working and bringing significant income but have a much smaller need/desire for additional savings than you did during your younger life.
Thank you. I get your drift.
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Re: When did you start spending more and saving less?

Post by Glockenspiel » Fri Apr 19, 2019 10:54 am

Cycle wrote:
Thu Apr 18, 2019 3:26 pm
We have a kid going to daycare in a month, gone are the days of 35-40k in spending per year. How old? 35
I think I'm in your same metro area and I can commiserate. We have 2 kids in daycare/pre-school, not full-time, and we're spending about $25k-$27k/year on daycare ALONE.

Quickfoot
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Re: When did you start spending more and saving less?

Post by Quickfoot » Fri Apr 19, 2019 10:57 am

After paying off debt and maxing my traditional 401k. Could we also strive to max two IRA's ? sure but we already will have enough to retire very comfortably at 60. Life is a trade off, plan for the future but live for today as well. Tomorrow is never guaranteed, the reality is we all have less time than we would like whether that be 50 years or 95.

Saving zero is a bad idea, saving 30% at the expense of being unhappy is equally bad.

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TheTimeLord
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Re: When did you start spending more and saving less?

Post by TheTimeLord » Fri Apr 19, 2019 11:01 am

smitcat wrote:
Fri Apr 19, 2019 10:50 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:48 am
smitcat wrote:
Fri Apr 19, 2019 10:45 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:17 am
smitcat wrote:
Fri Apr 19, 2019 10:10 am


"I was thinking more about reducing the savings rate from like 40%-50% to 25%-35% when I constructed the original post."
Lowering the savings rate by 15% would leave extra funds - there would need to be a purpose for those funds.
That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.

"What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification."
Then you would need a purpose for those extra discretionary funds in the present.
Yes, the purpose is to increase my enjoyment of the present by adding in some discretionary items and luxuries that I might have denied myself in the past. I guess instead of Me Time you could call it Me Money.
I would not have denied it in the first place, I would spend it now if it lends happiness Based upon your collective posts I would say that I would hope you have heirs, otherwise it will go to strangers.
I would say the majority of my life I denied very little of what was meaningful to me but over the past decade as I could see retirement on the horizon I have delayed some things that I wouldn't have before. I never believed we would both still be working at our age so that combined with a well timed bull market has left us in a position I did not have envision 5 or 10 years ago.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]

brucebuck1010
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Re: When did you start spending more and saving less?

Post by brucebuck1010 » Fri Apr 19, 2019 11:20 am

My plan is to never start spending more. I will save less (if any) when I retire at the end of the year.
Last edited by brucebuck1010 on Fri Apr 19, 2019 11:46 am, edited 1 time in total.

mptfan
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Re: When did you start spending more and saving less?

Post by mptfan » Fri Apr 19, 2019 11:32 am

TheTimeLord wrote:
Fri Apr 19, 2019 10:39 am
I think what I was trying to highlight is I am not sure most people want the same lifestyle they had before retirement and the one they want tends to be less expensive.
We have no way of knowing what most people want, at least I am not aware of any data on that. My experience tells me otherwise though, I think most people want at least the same lifestyle they had before retirement, and I would even go further to say that most people want to spend more after retirement than they did before retirement, myself included. Not that they can, or that they do, but that they want to. The fact that most spend less after retirement, especially in the early go-go years I think is the result of necessity, not choice.

smitcat
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Re: When did you start spending more and saving less?

Post by smitcat » Fri Apr 19, 2019 11:40 am

TheTimeLord wrote:
Fri Apr 19, 2019 11:01 am
smitcat wrote:
Fri Apr 19, 2019 10:50 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:48 am
smitcat wrote:
Fri Apr 19, 2019 10:45 am
TheTimeLord wrote:
Fri Apr 19, 2019 10:17 am


That is taking the example very literally. What I was trying to illustrate is that I was not reducing savings to an insignificant or non-existent amount, those are not exact numbers because I have not plans to calculate the actual numbers. What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification. Maybe this just isn't the BH way.

"What I am doing is giving myself permission to spend more on discretionary items in the present instead of continuing to defer more and more gratification."
Then you would need a purpose for those extra discretionary funds in the present.
Yes, the purpose is to increase my enjoyment of the present by adding in some discretionary items and luxuries that I might have denied myself in the past. I guess instead of Me Time you could call it Me Money.
I would not have denied it in the first place, I would spend it now if it lends happiness Based upon your collective posts I would say that I would hope you have heirs, otherwise it will go to strangers.
I would say the majority of my life I denied very little of what was meaningful to me but over the past decade as I could see retirement on the horizon I have delayed some things that I wouldn't have before. I never believed we would both still be working at our age so that combined with a well timed bull market has left us in a position I did not have envision 5 or 10 years ago.
You had asked the question for feedback so there is some more...
- spend it now and don't worry about delayed gratification
- work your Roth conversion tradeoffs vs working as your 'spendable' dollars will be less than you think if you continue to work
- find a way for both of you to retire soon, it is important to have focus and purpose
- figure out who will get the funds you do not utilize and figure the best way to get it to them
Have a great time, do not wait.

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beyou
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Re: When did you start spending more and saving less?

Post by beyou » Fri Apr 19, 2019 11:56 am

Never so far but not yet retired.

When young you often spend most of your paycheck and save nothing... so you can't save less than nothing (unless you count debt).
As I got older I spent more AND SAVED MORE. Took income increases and split into savings and spending.

I will save less when retired (and annual savings go to zero).

GlacierRunner
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Re: When did you start spending more and saving less?

Post by GlacierRunner » Fri Apr 19, 2019 12:28 pm

When we hit $1 million in net worth. - I got a gym membership. - we got the internet at home instead of relying on the library. - we purchased a desktop computer. - we doubled our annual travel allowance

When we purchased our home (4x+ the square footage). We were saving each month the difference between owning and renting. Now that money is being spent instead of saved, but it's really awesome that we can buy what we need for the house (e.g. we had a windstorm last night and discovered our wood stove chimney cap blew off. No stress, we're headed to the store tonight.). It's weird though, I had to restart one of our taxable accounts because we had another 140% of the monthly house savings accumulating in the checking account.

Rush2112
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Re: When did you start spending more and saving less?

Post by Rush2112 » Tue Apr 23, 2019 5:10 pm

flyingaway wrote:
Fri Apr 19, 2019 8:17 am
I though I answered this one yesterday, apparently it did not stay.

When I started doing OMY it was the time that I started spending more. If I don't retire after financial independence, I just start to enjoy retirement-like life: more travel and better quality purchases.
I never thought of OMY quite like that...interesting. I guess it all depends on how hard you are still working each OMY vs. free-time to enjoy the retirement-like life of more travel and better quality purchases...& family-time.

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