Why are you trying to save so much money?

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HomerJ
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Re: Why are you trying to save so much money?

Post by HomerJ »

hsv_climber wrote:
Holden_Caulfield wrote: You only spend ~$300 a year on beer? Yikes, I spend that in a month. Maybe I'm doing it wrong...
At 6-12 pack / day, you are doing it right. You definitely don't need to save the money for retirement.
I'm guessing he drinks GOOD beer, not Bud Light like me... :)

(Or he goes to bars and sports arenas a lot... I just can't waste money like that more than once a month).
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Clearly_Irrational
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Re: Why are you trying to save so much money?

Post by Clearly_Irrational »

Two words: "Time Freedom"

The ability to do what I want when I want to do it without having to worry about starving or freezing to death.

Fairly simple goal, not so easy to implement.
caliber88
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Re: Why are you trying to save so much money?

Post by caliber88 »

For me, I save whatever I don't plan to use. And to buy a nice house & car down the road with extra left over.
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Go Blue 99
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Re: Why are you trying to save so much money?

Post by Go Blue 99 »

We are planning on having kids soon, so we are basically saving for that (beyond our retirement contributions). Our savings rate will plummet once we have that expensive daycare bill to pay. We are also planning on buying an SUV in the next couple of years, so I'd like to put at least 50% down.

Our general savings mentality is that we like to balance between saving and spending- we are not maniacal savers. We could definitely save more if we wanted to but I enjoy our lifestyle. We're less into material items and more into spending on experiences- mainly travel and eating out. We are trying to get in as much travel as we can before having a kid. We actually just booked a London & Paris vacation for September.
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tc101
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Re: Why are you trying to save so much money?

Post by tc101 »

I sure am glad I saved a lot. I was able to retire at 55, and work part time for several years before that. Nothing I could have bought with that money would have given me the happiness of the leisure time.
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Metallising
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Re: Why are you trying to save so much money?

Post by Metallising »

Interesting topic. I was in the same boat, I was never sure if I was managing well between having good life and saving enough to achieve financial independence.

My definition for good life is travel very often and go to restaurants. Of course this is not what one should do very often when focusing in achieve financial independence as fast as possible.

To satisfy my will of travelling and save money I decided to move to another country. I think it was good decision once I'm now in the center of Europe, 80 miles away from French, German, Austrian and Italian border, every two weekends I do a roadtrip and during the Winter it's even better because I have a good ski resort 20 miles away from home. Salaries in Switzerland are much higher than in the rest of Europe, this gives me a huge purchasing power advantage. A two days roadtrip in France including hotel and fuel would never cost me more than 5% of my monthly salary (of course I share expenses with my mate). The funny part is that I have a crappy job and my salary is low comparing to Swiss average. So, all I do is taking advantage of divergences in Europe.

I'm 23 and I have been saving 25k CHF (close to 25K USD) annually since 21. I don't want to retire, I'm sure I would feel useful, but I'm totally focused in achieving financial independence. What's for? I would like to have a degree in my area of interest, a pleasant job and the freedom to quit when it starts boring me. Also, during my professional life I would like to do short-term retirements and use my precious time in things I would never do if I had to work hard every day. One year retirement during my 30's to live in South Korea and learn Taekwondo sounds great to me. If I have purchasing power advantage for living in Switzerland comparable to rest of Europe, I would be an extremely wealthy guy in South Korea. Switzerland and US are comparable in terms of average purchasing power.

For now my plan is to keep saving the most I can, then in one or two years start my degree while working in part-time, roughly I plan to withdraw nothing before 200k portfolio. Planning thereafter is like forecasting, life is a roller caster.

I think nobody should wait until 65 to start having fun. Never! In my view, people should live in the most dynamic and enjoyable way while keeping the costs low. Anyone can take advantage of globalization.

For redefining lifestyle I recommend "the" book: The 4-Hour Workweek
Doesn't matter how old you are, it's a life changing read. It was much more important for my happiness than any Bogle's book.

What wikipedia have to say:
In the book Ferriss uses the acronym DEAL for the four main chapters.[3] It stands for: Definition, Elimination, Automation, and Liberation.

Definition means to figure out what a person wants, get over fears, see past society's "expectations," and figure out what it will really cost to get where a person wants to go.

Elimination is about time management, or rather about not managing time. This is achieved by applying the 'Pareto principle' or '80-20 Rule' (80% of your benefits come from 20% of your efforts) to focus only on those tasks that contribute the majority of benefit, and using Parkinson's Law (work expands so as to fill the time available for its completion) to limit the amount of actual time spent working. There's a difference, Ferriss says, between efficiency and effectiveness. The book's emphasis is on effectiveness.

Automation is about building a sustainable, automatic source of income. This includes techniques such as drop-shipping, automation, Google Adwords and Adsense, and outsourcing.

Liberation is dedicated to the successful automation of one's lifestyle and the liberation from a geographical location and job. Incidentally, Ferriss notes that if somebody has a regular job, the order of steps will be DELA, not DEAL.
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Hub
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Re: Why are you trying to save so much money?

Post by Hub »

This is a good thread. My wife and I just got simultaneous 15+% raises and I found myself pondering the question of whether I was saving too much. By my calculations 25% of our previous gross salary was enough savings to be able to retire in our early 50's. However, if I use part of my raise to max out my 401k we'll still be left with an extra $900 take-home vs current and ultimately 10k more annually going to retirement. We're working on child #2, when that happens the spare $900 will be gone and we're back to present spending levels, just with better savings in the meantime. I would prefer not to increase my savings and just add the whole raise to our budget, but...

I think my point is that I save because I want the option of freedom as soon as is reasonably possible and it's gonna have to sting a little bit in the meantime. I hate that freedom is such an ill-defined goal, but the same objective applies with fear of the unknown, making hay while the sun shines, black swan, etc. Maybe on our next raise I'll explore a permanent increase in consumption more fully.... though we'll still be about $10k short of fully maxing tax advantaged space.
MnD
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Re: Why are you trying to save so much money?

Post by MnD »

Freedom - to do what we want right around the time our youngest graduates from college.
We've both had jobs continuously since age 16 and have been child-raising for two decades.
In 5 years it will be 40 years of work and 25 years of kid-raising.
That's plenty - we are both getting pretty tired of "renting" ourselves out for 50 hours a week and then spending a lot of our other time and resources on others.

We had a vacation recently that was a bit like retirement - rented a small condo then a small home without much of a schedule or agenda.
We were like different people and we really liked it.
There are a lot of beautiful places in the world where it's hard to make a living.
Having the resources to be able to support yourself in middle age, even in fairly high cost of living areas gives you so many more options.

Now if you'll excuse me I have to work on buying a 4th family vehicle which should be the high water mark of household and financial complexity.
After building up for around 30 years, this complexity is going to start unwinding in about 7 days, when we officially become empty-nesters when college is in session.
It will really start to accelerate 20 months, when my oldest graduates and it keeps accelerating from there.
I'm starting to do things at work that I won't have to do again - just finished a 5-year contract that someone else will have to deal with in 2018. :happy

I see people who don't save just going from one crises to another. They end up at college graduation with inadequate savings, still a mountain of mortgage debt and often a fresh mountain of college-related debt and the realization that they are going to be working for others pretty much until they are all used up. And that's if they are fortunate and retain their health and mental capacity into old age and don't experience age-discrimination at work. That's a lot of "if's and ands" - just for the privilege of keeping their nose to the grindstone. No thank you.
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futureman
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Re: Why are you trying to save so much money?

Post by futureman »

I am saving for financial independence and security for myself and my family. If the next 40 to 50 years I have left to live are good and prosperous times,then we will be financially independent soon enough to sit back and enjoy the good life,whatever that might be. If times are rough (think depression), I prefer to be the family not in the bread line or in tent city.
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Re: Why are you trying to save so much money?

Post by Call_Me_Op »

You are only saving "too much" if you are depriving yourself of things you really want.
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Johm221122
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Re: Why are you trying to save so much money?

Post by Johm221122 »

Another vote for freedom.I've been saving 25/30% of pay for10 years and hope I reach my goal in about 15 more
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staythecourse
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Re: Why are you trying to save so much money?

Post by staythecourse »

A lot of good answers. I think the use/ importance of money is different for each person. Some it will be financial freedom, some will be to spend more time with family, some will be traveling, some will be to buy a Porsche, etc... There is no right answer.

The answer for my wife and I is we make more money in our jobs then we need/ want. We spend money, but not nearly as much as you would expect for our level of income. So what we do is save everything we don't want to spend. What else are we going to do with the money? Now in the future that money saved should let me retire early/ go part time in my early 40's. I've also had thoughts of setting up an endowment fund/ scholarship when we pass away to make use of that money when we pass.

Good thing about money it isn't fruit you buy at the grocery... it doesn't go bad, so you don't have to have everything figured out yet.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle
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Tycoon
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Re: Why are you trying to save so much money?

Post by Tycoon »

I'll cast another vote for freedom. Like MnD I have been working a very long time. I started working at fourteen and haven't had a break since.

One day soon I hope to live the life my wife and kids are living.
Emotionless, prognostication free investing. Ignoring the noise and economists since 1979. Getting rich off of "smart people's" behavioral mistakes.
heyyou
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Re: Why are you trying to save so much money?

Post by heyyou »

How does "buying your freedom" sound as a reply to the question in the thread title? That was a reply at early-retirement.org, perhaps by Kramer who posted earlier in this thread, and I wholeheartedly agree.

I retired at 55 from a physical job, having stayed an extra year to get retiree healthcare for $50 a month for both of us.

So far, for the previous eight years, retirement has been the best years of my life: no commute, no deadlines, no bosses, no meetings to attend, no schedule-neither daily, nor weekly.

What do I do now? I do almost whatever I want to, when I want to. In retirement, you can be whoever you want to be, not whoever you needed to be to make a living. My volunteer work keeps me fit, makes me feel good, and the recipients seem to appreciate it too.

My only regret about not working longer is that we cannot afford a second home in Hawaii and DW likes it here on the mainland, so we are not moving there, just visiting often. Compare your problems to mine. That is what a portfolio and a pension have purchased for my wife and me. I hope that others can find the happiness that I've found in retirement.
IlliniDave
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Re: Why are you trying to save so much money?

Post by IlliniDave »

Somebody said it before: options. To me financial independence means having options on how I expend the balance of my human capital (despite the popular notion, human capital has many good uses beyond converting it to cash). Wealth to me is having more than enough, and of course it is somewhat tied to independence, but not the goal.

There's nothing wrong with delaying one's financial independence to enjoy the gift of life now, but the reason I am "denying" myself things in the present (saving rate of about 75% after tax) is because absorbing the bumps of life has caused me to put financial independence at the very top of my want list.
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burt
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Re: Why are you trying to save so much money?

Post by burt »

Why am I trying to save so much money ?

Because I've spent the past 36 years making other people rich, and wish to do so no longer.

burt
Grip
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Re: Why are you trying to save so much money?

Post by Grip »

I'm glad this thread got bumped because I didn't see it in June and it's a question I struggle with.

The short answer is FEAR. I’m saving so that I have flexibility when I need it, not when I want it. I may someday need to move cities, states, countries (I have multiple citizenships); I may need round-the-clock nursing in my home; I may need homes in two locations. I save so that I have the flexibility to meet my future needs.

And I have a late start on it, compared to you lucky people who saved early in life. I’m a financial late bloomer – I never made much when I was in my 20’s and 30’s, and I had distractions and issues that caused me not to save. In my mid-40’s I started a business that’s doing well, and now I find myself a One Percenter with little savings to my name. Who knows how long that money will continue to roll in? I save so if the bottom falls out of my business, I won't be floundering.
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siamond
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Re: Why are you trying to save so much money?

Post by siamond »

The Wizard wrote:
kramer wrote:When I was 32 I loved my job, also. But it became a major drag a few years later, after working in the same career for over a decade.
Similar with me, too.
I think the best solution is BALANCE between saving/investing and DOING fun recreational activities in your 20s, 30s, 40s. Then hopefully you get to age 55 in good shape to deal with whatever your end-game plan looks like...
Yup, I resonate with those two posts.

Oh yeah, at 32, I loved my job and was working real hard, while not forgetting to have a bit of fun here and there. Then the mid-40s hit, and I increasingly got quite enough of all the quirks and frustrations of the workplace. Since then, the early retirement plans got MUCH more detailed and concrete... So that I can reclaim my freedom in my mid-50s and do whatever I want. Which of course implies financial independence and reasonable safety. We have only one life...
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M_to_the_G
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Re: Why are you trying to save so much money?

Post by M_to_the_G »

I'm about your age (33), and I save what I consider to be a large portion of my pay, far more than most of my colleagues. I save so much money because I have a goal of retirement at 50. I'm saving what I think I will need, projecting 6% growth on average, to retire and maintain my last working year's level of income for life.

Philosophically speaking, I don't know any old folks who say, "Gosh, I wish I hadn't saved so much." But I know lots of old folks who say, "Gosh, I wish I had saved more!" I'm also willing to put up with a very demanding job because I actually like my job (for the most part :wink:), but more importantly, because I can see that finish line. I know guys who retired early with a big pile of money. They are the relaxed, happy ones. Life is good. The past is the past, however they felt about work. As for the "free spirit" types who were too cool for school? Unless they were trustafarians with other, external income streams to count on, they might give you a yarn about how they are happy with their choices, but you can usually tell that their financial insecurity bothers them to the point of depression.

You mention luxuries like cars and such. I'm pretty confident that 20 years from now, neither I nor anyone else will care--or possibly even remember--what car I was driving 20 years earlier. I think the whole "live for now" movement is a bit trumped up. Yes, you need to live for now, but that doesn't mean spending money on stuff. You can take a walk in the park on Sunday. You can attend a lecture at the library. You can send a hand-written letter to a good friend. These things don't cost money.
"It’s basically the plot of 'Charlie and the Chocolate Factory.' If you stick around, doing nothing, while everyone around you ****s up, you’re going to win big." - John Oliver
LFKB
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Re: Why are you trying to save so much money?

Post by LFKB »

I save because I'd like to retire by 45. Also because I'd like to build a custom built home or buy a nice home and we live in sothern California

We save about 67% of our after tax income, but we travel, eat out, etc as much as we like. Our income is sufficient to not deprive us of anything we'd like to do but still save the majority of it. Sure we don't fly first class, but we drive nice cars, live in a nice place in a great area, and spend money on everything we enjoy.
Bacchus01
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Re: Why are you trying to save so much money?

Post by Bacchus01 »

What a great thread.

I find it interesting that the more money we make, the more we tend to scrutinize our expenses. We are saving for the kids to be able to go to whatever university they want, provided they have the merit to get there.

We are saving to retire early. I turn 40 in a few months and want to be out of the game by 50. Others have said it, but often work that is a blast in your 20's and 30's becomes just work at some point.

And of course, we save somewhat out of fear. What if there is another depression? What if something happens and we can't recover?

We had dinner with a nice new couple in the neighborhood the other night. They told us that the house they bought was more than they wanted to spend and was the most expensive they looked at. On the other hand, the house we bought is 20 percent more, and was by far the cheapest we looked at. The morale here is that "frugality" is a matter of perspective as well. We bought what we thought was a house well below our means, but others might see it as excess.
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Re: Why are you trying to save so much money?

Post by hq38sq43 »

Some are gunslingers, some are not. Most Bogleheads seem to be in the not category, but

To each his/her own.

Best regards,
Harry at Bradenton
investingdad
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Re: Why are you trying to save so much money?

Post by investingdad »

I drop about $40 a case when I buy beer because that's what it costs to buy what I enjoy. I go through a case every two weeks. Totally worth it.

As to why we've been saving 25 percent out more since 22...that's easy. Flexibility and piece of mind and hopefully the option to walk away if we so choose at age 55.

If I'm lucky I'll love my job enough to want to keep working when the money no longer matters.
stonerolled
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Re: Why are you trying to save so much money?

Post by stonerolled »

I have been somewhat sick of saving lately. I really want a weekend escape but when I think long enough, I realize that my primary residence takes up enough time where I would not enjoy a full time getaway. Unused or underused things drive me crazy.
Saving is somewhat addictive, you begin with a basic deferred tax ira and realize if i put in 2x then ....
Financial independence is very high on my priority list.
I like how maximizing savings minimizes expenses or lifestyle. As time goes on, I appreciate this more and more as expenses are all that needs to be provided for, not income. Keeping expenses low may be the thing we have the most control over.
I do not assume that my income will always be there so as they say, 'make hay when the sun is shining'.
I get fever every now and then, I have been looking at rv's and after shopping and learning for several months, I do not have the time to use it properly. they can be a part time job in themselves. So I guess will continue to save....
reggiesimpson
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Re: Why are you trying to save so much money?

Post by reggiesimpson »

You have a discomfort that is slowly but surely being alleviated by saving more money. You are not there yet but its foreseeable. When the discomfort decreases to a tolerable level it will start to be replaced by a subtle joy. Thats when you know you have saved enough.............and yes its worth it.
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Re: Why are you trying to save so much money?

Post by travellight »

I save for financial freedom and peace of mind. while I am probably 5 years away from achieving that, I realized in doing some calculations that I may actually earn more in retirement than I do while working once my goals are achieved so I've been allowing myself some spending splurges now.
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tibbitts
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Re: Why are you trying to save so much money?

Post by tibbitts »

I don't know any old folks who say, "Gosh, I wish I hadn't saved so much."
You may be encountering survivorship bias. Probably lots of people who never got to be "old folks" might have wished they hadn't saved so much. And possibly your circle of "old" acquaintances includes relatively few people who have become seriously disabled or are otherwise unable to interact with the rest of us as much as they might prefer.

Paul
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M_to_the_G
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Re: Why are you trying to save so much money?

Post by M_to_the_G »

tibbitts wrote:
I don't know any old folks who say, "Gosh, I wish I hadn't saved so much."
You may be encountering survivorship bias. Probably lots of people who never got to be "old folks" might have wished they hadn't saved so much. And possibly your circle of "old" acquaintances includes relatively few people who have become seriously disabled or are otherwise unable to interact with the rest of us as much as they might prefer.

Paul
Sure, but you can't exactly make financial plans around that. No one knows if they are going to die early or become incapacitated.
"It’s basically the plot of 'Charlie and the Chocolate Factory.' If you stick around, doing nothing, while everyone around you ****s up, you’re going to win big." - John Oliver
Vittelx
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Re: Why are you trying to save so much money?

Post by Vittelx »

Short answer: F you money.

But seriosly though you ask why we are trying to save so much. Id rather look at it like this "would speding more money make me any happier?".

We eat good food, but its from Aldi and stores like that.
We have a car, but its not a new Audi or a BMW.
We own a house, but not in an upscale area.
We travel, but oftent domestic or to countries close by.
We eat out, but would never go to those michelin restaurants and the likes.

Etc.

We think we live a good life without limiting ourself. Its not like buying an expensive car or moving to an upscale neighborhood will make us 100% more happy - more like 2-3%. And the premium just isent worth it for us.
jackholloway
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Re: Why are you trying to save so much money?

Post by jackholloway »

M_to_the_G wrote: Philosophically speaking, I don't know any old folks who say, "Gosh, I wish I hadn't saved so much." But I know lots of old folks who say, "Gosh, I wish I had saved more!".
My father on his deathbed:, "We never travelled it to Australia when we both could still walk. The time ended, and we did not see the door closing until after it happened. You offered to buy and set up that flat screen TV I wanted, and I worried about a $500 cost. We have money, and I would not have wanted to run out, but spending even half a percent now and then would have given me irreplaceable memories. Thrift is a wise habit, setting something aside for a rainy day a way of life, but if you let saving become an end instead of a means, you have lost sight of what you are saving for."

I save a fair amount, and I have been luckier than I deserve. I would not want either to become a source of regrets.
mbenz1997
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Re: Why are you trying to save so much money?

Post by mbenz1997 »

I'm saving for the day when my monthly income/dividends from investments exceeds my current salary. That will be a damn good day. Then I will truly be master of my own fate.
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White Coat Investor
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Re: Why are you trying to save so much money?

Post by White Coat Investor »

hsv_climber wrote:
Holden_Caulfield wrote: You only spend ~$300 a year on beer? Yikes, I spend that in a month. Maybe I'm doing it wrong...
At 6-12 pack / day, you are doing it right. You definitely don't need to save the money for retirement.
Heck, you could probably retire now if you're willing to drink that much from now until the day you die. The SWR ought to be somewhere North of 10%.
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investingdad
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Re: Why are you trying to save so much money?

Post by investingdad »

EmergDoc wrote:
hsv_climber wrote:
Holden_Caulfield wrote: You only spend ~$300 a year on beer? Yikes, I spend that in a month. Maybe I'm doing it wrong...
At 6-12 pack / day, you are doing it right. You definitely don't need to save the money for retirement.
Heck, you could probably retire now if you're willing to drink that much from now until the day you die. The SWR ought to be somewhere North of 10%.
A couple people I think have assumed that the poster is buying low quality beer, which can be had for $20 a case. There are a lot of higher quality choices which can run from $40 to $100 a case (Chimay comes to mind). If both he and his spouse are have 1 or 2 bottles each per day they could easily be running through 3 cases or more per month without the scenario of some guy single handedly chugging two 6-packs a day.
Murdoch
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Re: Why are you trying to save so much money?

Post by Murdoch »

Freedom and fear.

I want to have the freedom to retire when I want, or to cut back hours when I'm ready.
I am fearfull that I'll get sick of my job but be stuck working it.

Saving in a miserly fashion at my current age will be far more beneficial than doing the same thing later in my career.
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William Million
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Re: Why are you trying to save so much money?

Post by William Million »

Saved money works for you, rather than you working for your money.
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VictoriaF
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Re: Why are you trying to save so much money?

Post by VictoriaF »

The question "Why are you trying to save so much money?" implies an active pursuit. In reality, saving money is mostly passive. Personal finance includes several components:
1. Make money <-- active
2. Spend money <-- active
3. Save money <-- passive
4. Invest money <-- active

Saved money is the difference between money made and money spent. It is what it is.

So why do people save "so much" money?
1. They make more than they spend--including money made off investments.
2. They spend intelligently--stretching expenditures across their lifetimes.
3. They like investing and want to have more money to work with.


Victoria
Last edited by VictoriaF on Mon Aug 19, 2013 9:45 am, edited 1 time in total.
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mojave
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Re: Why are you trying to save so much money?

Post by mojave »

HomerJ wrote:
ascenzm wrote:
mortal wrote: In another example, I see 7k, as buying a lifetime supply of beer. :beer

Saving becomes very easy when you look at it in these terms
You are either planning on a short lifetime or drinking only macrobrewed American adjunct lagers if 7K is all you're planning to spend. :sharebeer

Mike
$7000 at 4% returns $280 a year or $23 a month. That's enough for a 30-pack of Bud Light. That's about seven beers every weekend. Seems reasonable. :)
"Mr. Bud"?
technovelist
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Re: Why are you trying to save so much money?

Post by technovelist »

staythecourse wrote:Interesting question. Count me in the category of wanting financial independence. Might sound harsh to say is one thing I have learned as I've gotten older is that money trumps everything else.

The more money one has the more independent they become. The power to be able to say no to ur employer without being afraid of the impact of getting fired is priceless. The power money brings is worth much more then the feeling of buying a new car or mcmansion.

Good luck.
Yes, this exactly. I would have been very unhappy a few years ago if I had not been able to quit the job I had at the time.
In theory, theory and practice are identical. In practice, they often differ.
Professor Emeritus
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Re: Why are you trying to save so much money?

Post by Professor Emeritus »

I still remember the wonderful day in 1992 When I realized that no matter what happened the kids would go to college and we would never lose the house. I called it financial independence day. It happened that both DW and I had reasonably secure, fun , socially productive public positions with DB pensions. The next goal was to never be a burden to our kids no matter what our health. We always traveled although often with a work connection, and we always took the kids. You do get into a habit of saving money and watching what you spend. I am a whiz at very comfortable relatively cheap travel.

Even today, with DW winding down her job, we are still net savers. But I have plans !!
feh
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Re: Why are you trying to save so much money?

Post by feh »

Our goal is financial independence. Early retirement.
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HomerJ
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Re: Why are you trying to save so much money?

Post by HomerJ »

HomerJ wrote:Peace of mind.

My wife is going to lose her job this year; and we don't even care. Zero stress about it. SHe's excited about having some time off, maybe even retiring.

That would not have been true 5-10 years ago.
By the way, my wife has been "retired" now for almost a year. My youngest kid is loving it, I'm loving it, She's loving it...

Saving hard the last 15 years made it possible. We got the house paid off, and the middle kid's college paid for, and plenty in retirement savings so I'm still on track for a early retirement too (in about 10-12 years - which is fair because my wife is 8 years older than me, so while I was partying in my 20s, she had already made a big start on our current nest-egg)
leonard
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Re: Why are you trying to save so much money?

Post by leonard »

Financial Independence.

Otherwise - there is always someone - that when they tell you something - you have to listen.
Leonard | | Market Timing: Do you seriously think you can predict the future? What else do the voices tell you? | | If employees weren't taking jobs with bad 401k's, bad 401k's wouldn't exist.
fareastwarriors
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Re: Why are you trying to save so much money?

Post by fareastwarriors »

I grew up really poor and didn't like it.
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Re: Why are you trying to save so much money?

Post by Woodshark »

mbenz1997 wrote:I'm saving for the day when my monthly income/dividends from investments exceeds my current salary. That will be a damn good day. Then I will truly be master of my own fate.
Well put! For me, I would say "When my monthly income from investments exceeds my monthly expenditures. That will be a damn fine day indeed."
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Meaty
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Re: Why are you trying to save so much money?

Post by Meaty »

leonard wrote:Financial Independence.

Otherwise - there is always someone - that when they tell you something - you have to listen.
+1!
"Discipline equals Freedom" - Jocko Willink
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Re: Why are you trying to save so much money?

Post by technovelist »

leonard wrote:Financial Independence.

Otherwise - there is always someone - that when they tell you something - you have to listen.
Other than your spouse, of course. :-)
In theory, theory and practice are identical. In practice, they often differ.
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Re: Why are you trying to save so much money?

Post by travellight »

LOL! So well put, Leonard.
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Re: Why are you trying to save so much money?

Post by Investing is boring »

Because I have nothing better to do with it. My wife and I are fortunate in that we both love what we do (for now), live the lifestyle we want, and still are able to save 40% - 50% per year. This is a big jump from 4 years ago where we were only able to save 15%. We are 34 and 33 respectively. Our intention is to buy a cheaper home (< $500k) in our HCOL area, and look to pay cash, or be done with the mortgage by 40. Then who knows. Maybe I will go mow lawns for the municipality. :)
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Go Blue 99
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Re: Why are you trying to save so much money?

Post by Go Blue 99 »

Investing is boring wrote:Because I have nothing better to do with it.
This describes us right now. We are fortunate that we are able to spend on experiences/stuff we enjoy (within reason), and still be able to save 20% of our gross.

Esquire had a feature article last month on personal finance. One of the tips was "if you come into some unexpected money, save half and spend half". I don't really have anything I want to spend additional money on these days though.
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VictoriaF
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Re: Why are you trying to save so much money?

Post by VictoriaF »

Go Blue 99 wrote:
Investing is boring wrote:Because I have nothing better to do with it.
This describes us right now. We are fortunate that we are able to spend on experiences/stuff we enjoy (within reason), and still be able to save 20% of our gross.
That's what I meant when I wrote above about the passive nature of saving.

Victoria
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