Save Almost Everything, Spend Virtually Nothing

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November 4th, 2018 at 10:34:44 AM permalink
Pacomartin
Member since: Oct 24, 2012
Threads: 859
Posts: 10231
FIRE ~ “financial independence, retire early.”



Wall Street Journal writes a story about 38 year old Sylvia Hall, who makes a decent living as a Seattle lawyer, but wants to retire at age 40 with $2 million. Her dream has a price: brown bananas. She also has no husband, no children, no automobile, lives in a 400 square foot apartment within walking distance to work, and borrows her friends Netflix passwords as she has no cable TV. This kind of frugality allows her to save 70% of her salary.

Is it worth it? What if you get sick. Is it worth living alone (someone besides Evenbob). Does she do the "Looking for Mr. Goodbar" thing? She doesn't admit to that, she just says she goes Dutch dating.

Interview with Sylvia Hall
November 4th, 2018 at 10:37:57 AM permalink
terapined
Member since: Aug 6, 2014
Threads: 44
Posts: 4259
Unbalanced life
You lead a balanced life for happiness.
Enjoying today while planning for the future
Life is short, could end earlier then you thought.
Enjoy yourself today
Sometimes we live no particular way but our own - Grateful Dead "Eyes of the World"
November 4th, 2018 at 1:27:29 PM permalink
Fleastiff
Member since: Oct 27, 2012
Threads: 54
Posts: 6509
One man finished his last shift on a seven story gantry, stepped back to admire his work, slipped on a damp spot and hit the ground hard enough to bounce winding up next to his pickup truck loaded with camper and fishing gear. He did not collect his final paycheck or his first pension check. He had lead a frugal life so as to have a good retirement.
November 4th, 2018 at 1:47:41 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 121
Posts: 15799
Quote: Pacomartin
who makes a decent living as a Seattle lawyer, but wants to retire at age 40 with $2 million.


She thinks she can live for the next
40 years in that area on $2mil? No
way. Move to MS and buy a $30,000
house, and never have kids, maybe.

$2mil divided by 30 years is about
$66,500 a year. You could live
pretty well on that in MS, not where
she lives now.
If you take a risk, you may lose. If you never take a risk, you will always lose.
November 4th, 2018 at 4:04:20 PM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 111
Posts: 8773
I live small but "modern minimalist." 18 years ago I had too much house and car. Getting a small and affordable house is about the most important thing you can do. Keeping the car in line is next. But I like having a few nice things.

How many people keep housing to the traditional 25% or less of income? Do that and never spend more than six months income on a car and you are on your way to lower worries.

I will admit it is way easier when you never had a desire for kids and barely to not at all for a wife. But living alone is great. As good is just renting a room in a place (assuming you are not wanting to buy and end rent totally). When my rental place is ready and rented life will be even better. Live small and keep out of the rat race.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
November 4th, 2018 at 5:56:06 PM permalink
Evenbob
Member since: Oct 24, 2012
Threads: 121
Posts: 15799
Quote: AZDuffman
How many people keep housing to the traditional 25% or less of income?


I made the last payment on this
house in the late 80's when I
was in my late 30's. My wife
has her own house unconnected
to me. I knew I would not like
house payments or rent after
50 and I was right.

I've been working hours every
day painting and doing repairs
on the lower story. 5 gallons of
Glidden exterior white satin and
I'm almost there. Painting is easy,
it's the prep that takes all the
time. I built a rail for the front
porch that goes between the
four posts, and put permanent
shutters over the lower half
of the downstairs windows and
and painted everything white.
Changed the entire look of the
house.

The guy next door bought the
lot for $100K and is having a
$400K house built. He's late
40's, why would you do that
to yourself. A 30 year mortgage
when you're 48.

This is not my house, but I made
railing very similar to this out of
materials I had on hand, In fact
everything I did was with materials
I had on hand, the only money
spent was on paint. This railing
totally changed my houses
appearance, should have done
it years ago.



These are plantation shutters they
have on the inside of windows. I
took the ones I had and put them
on the outside, and painted everything
white. Looks great.

If you take a risk, you may lose. If you never take a risk, you will always lose.
November 5th, 2018 at 2:17:54 AM permalink
AZDuffman
Member since: Oct 24, 2012
Threads: 111
Posts: 8773
Quote: Evenbob


The guy next door bought the
lot for $100K and is having a
$400K house built. He's late
40's, why would you do that
to yourself. A 30 year mortgage
when you're 48.


That is what Dwight said when Michael Scott bought his condo in his early 40s. I bought my place in my early 40s. It is in a B-C neighborhood, but the neighborhood is kept, walkable, and has a decent chance of gentrification. It was near unlivable when I bought it and I know everyone I know thought I was nuts. But next year it is paid off as well as the mountain of cash I needed to remodel it. To myself I considered it a "I'll never be homeless house." Like telling the people who laugh at your older car "it's paid for!" I tell people the same.

I have been laid off something like 9 times the last 10 years. Literally lost count. Low and soon no house payment is a comfort there. Previous layoff a woman who lives two blocks up was in tears. She spends more on cigarettes for her and her daughter than I do on a flipping house payment. In her mid-50s now, no way she will ever have the comfort level I will as to housing costs. Over the years I have met older folks struggling because rent keeps going up. It really seems to be the difference between a struggling old age and a relatively comfortable one.

Oh yeah, and I can walk to so many things. PO is a three minute walk. Bus stop if I need is less than 100 steps. Dollar General, grocery store, haircuts, places to eat, and bars all easy walk. How more people do not appreciate walkability I will never know.
The man who damns money has obtained it dishonorably; the man who respects it has earned it
November 5th, 2018 at 11:46:51 AM permalink
odiousgambit
Member since: Oct 28, 2012
Threads: 93
Posts: 2331
I'm one of those who says you should not pay off your house. I'm certain of a few things:

*those of us who disagree on this will never convince the other side
*I won't say it is absolutely a bad thing to pay it off, it's a financial goal, people need those, and for some nothing else substitutes well
*those on my side of the thinking have to refinance until you get a good rate, which will finally come; short of this, the other side has a point
*no one has "no more house payment" ... perhaps little will be monthly, but you'll still have house payments, which are
...property taxes
...insurance payments
...upkeep
...probably something else I've forgotten at the moment

and another thing, you don't lose your house because of a mortgage [assuming the interest rate isn't crazy]. You can lose your house because you don't have the money. These things are not the same.
Mustard:You like Kipling, Miss Scarlet? Sure, I'll eat anything [from movie]
November 5th, 2018 at 11:58:23 AM permalink
DRich
Member since: Oct 24, 2012
Threads: 22
Posts: 1016
Quote: odiousgambit
I'm one of those who says you should not pay off your house. I'm certain of a few things:

*those of us who disagree on this will never convince the other side
*I won't say it is absolutely a bad thing to pay it off, it's a financial goal, people need those, and for some nothing else substitutes well
*those on my side of the thinking have to refinance until you get a good rate, which will finally come; short of this, the other side has a point
*no one has "no more house payment" ... perhaps little will be monthly, but you'll still have house payments, which are
...property taxes
...insurance payments
...upkeep
...probably something else I've forgotten at the moment

and another thing, you don't lose your house because of a mortgage [assuming the interest rate isn't crazy]. You can lose your house because you don't have the money. These things are not the same.


I would say your argument is much weaker now that most people will not be able to write off their mortgage interest.
November 5th, 2018 at 12:36:34 PM permalink
odiousgambit
Member since: Oct 28, 2012
Threads: 93
Posts: 2331
Quote: DRich
I would say your argument is much weaker now that most people will not be able to write off their mortgage interest.
True, that. I wonder what the statistics are.
Mustard:You like Kipling, Miss Scarlet? Sure, I'll eat anything [from movie]
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