I recently had an experience that offered a sharp reminder: despite years of saving (successfully!) and a year and a half of not blowing our early retirement budget, I’m still a spender at heart. But being a spender rather than naturally frugal doesn’t doom you to fail financially. You can still thrive and save at a high rate if you just structure your life in ways that set you up to succeed.
We’re diving deep into the geekiness today, friends! We’re talking gaming (the video game kind, not gambling) and all the lessons we can apply from gaming to level up our finances on the epic quest to FIRE. Plus a giveaway of Kristin Wong’s new book Get Money, which is all about gamification!
When we first moved to Tahoe, we ran the heat at what seemed like a reasonable cool temperature, 62 or 63 or so, but then got a three-digit natural gas bill that started with a 4. So began our quest to reduce our heating bill and to find how low we could go, but this isn’t about keeping your house cold. It’s about finding your version of “selectively harcore” and all the non-financial lessons that come from being strict with yourself in one way of your choice.
If you’d told me at the beginning of our early retirement journey that we’d be on the verge of retiring only six years later, and that we wouldn’t be miserable or feel like we’d lived a life of sacrifice to make it possible, I wouldn’t have believed you. But it’s true. And not because we haven’t dramatically cut our spending. We have. But because sacrifice is a perception, not an absolute, and we’ve managed to balance out cuts to our spending with additions to other parts of our lives. Here’s how.
It is a natural thing to want to save money, and those of us pursuing huge financial goals innately find the idea of saving even more powerful. The problem comes when marketers deliberately blur the line between saving and spending, convincing us we’re doing one when really we’re doing the other. Today, recognizing when saving money is actually spending money, and how to keep the focus on the saving itself.
The question of when to retire this year — Work the full year? Retire sooner if we hit our numbers? — has been on our minds big time for many months, ever since we realized how ahead of schedule we are on our savings plan. But we’ve made peace with working the full year, and here’s why.
Living in the mountains has taught us that catastrophe comes quickly — wildfires can wipe out whole communities in the blink of an eye. While the world is still the safest it’s been since the dawn of civilization, there are many good reasons right now to up your savings game, both for your own safety, and for that of others.
The good financial news keeps rolling in over here at the Our Next Life house. We hinted at it recently, but today we’re sharing loads more detail about our ahead-of-schedule progress toward early retirement, with charts galore. It’s starting to feel downright magical around here!
We’ve talked a little bit about upping our savings game, but we’ve only talked about it in general terms. Today, we’re going to get specific about how exactly we’re raising the bar, and especially what that looks like for non-budgeters like us.
Today we’re kicking off a new periodic series called The Retirement Lie. We recognize every day how lucky/fortunate/privileged/rare we are for being able to pursue early retirement, primarily because we also recognize that just being able to retire at all is becoming increasingly unlikely for a large majority of people. In this series, we’re delving into the forces that are keeping people from retiring confidently and securely, beginning with the way media talk about retirement savings.
A lot of what we talk about here is specific to people on the early retirement path, but today’s topic is something every single one of us should have as an important part of our financial plan: an emergency fund. We think of our emergency fund not as a one-and-done kinda thing, but as something that has evolved upward and downward over time. And now, as we’re approaching early retirement, we’re once again rethinking how much we need to have saved in our e-fund when we hit our magical date.
we are as guilty as anyone of upsizing our spending at various times, mainly on restaurants and travel, but are thankful that several key factors have kept us from permanently inflating our lifestyle, namely our anchors, named for the anchoring effect or anchoring bias in psychology.
one of the things that’s different about us, compared to lots of bloggers in the pf community, is that we are not frugal by nature. at some point, we realized that all of that spending, even if it wasn’t on stuff, was still locking us into needing our jobs, and needing them for a long, long time. and since we value time more than anything, and were in a position to make early retirement a reality, we knew we’d regret not changing our ways. but it hasn’t always been easy. here’s how we lived to tell the tale.
looking at things big picture, we’re astonished at how far we’ve come in a short time, aided in large part by jobs that overpay us. since we bought the house four years ago, our net worth has tripled, and the year-over-year gains are pretty big, owing to us getting serious about saving and about paying off the house quickly, as well as growth in the markets since 2009.
if you’re reading this blog, it’s pretty likely that the word “frugality” is a part of your vocabulary. maybe you don’t use it much in real life (like us), but it’s probably something you think about and read about at least a little bit. none of us can […]
we have always loved doing things ourselves. what’s funny in retrospect is how little the money piece has mattered to us in questions of diy, at least with the small stuff. but of course that was then. and this is our running-like-hell-toward-early-retirement now. money matters. especially the saving of it. so now when we diy things, it’s just as much about saving money as it is about the joy of making something.