Tag: spending

Let the Feelings of Future You Be Your Guide // OurNextLife.com // early retirement, financial independence, adventure, happiness, spending decisions, needs vs. wants

Let the Feelings of Future You Be Your Guide

Typical financial advice often focuses on learning to tell needs from wants. Which is great! But it only gets you so far. Most of the choices we make aren’t about needs vs. wants. They’re about wants vs. wants, or need-wants vs. want-needs. Rather than making your spending decisions based on this false binary, here’s why you should instead listen to the feelings of future you.

Aligning your spending with your values vs. what you value // Consider whether your spending supports only what adds value to your life vs. supporting your personal values, adding value to others' lives.

Aligning Your Spending with Your Values Vs. What You Value

Aligning your spending with your values with one of the first bits of advice many of us here when we get on the path to financial independence. But that advice usually goes on to talk about value — specifically what you get most value from — and not really about values at all. This is my case for why it serves you better to think about both what you value and your personal values when it comes to your spending and economic power.

The Nothing New Year Redux // Celebrating a Year of Less

A year ago, I issued the Use It Up Challenge, and lots of you took it on. (Tell me how it went!) But there was part of the challenge that we took on specifically — the nothing new year — that we didn’t fully live up to. So we’re leveling up this year. Also, it’s a big time for my friend Cait Flanders, and to celebrate, I’m giving away a copy of her book. Come enter!

What's the best way to begin early retirement? By spending what you'd budgeted for, or by taking a super frugal approach to spending in the first year? We discuss pros and cons of each approach.

The Best Way to Begin Early Retirement? Super Frugal Vs. “Normal” Spending

As total newbs to this whole early retirement thing, though admittedly newbs who’ve thought about this stuff a ton, we find ourselves now wrestling with a very practical question: Should we spend what we budgeted for this year, or aim to spend less, maybe a lot less? There are good reasons for either approach, so let’s talk about what those are.

How We’ll Live Beyond Our Budget in Early Retirement

In just two short months, we’ll be retired and living on a constrained income for the first time in ages. But we’re not worried, because we have a whole bunch of ways to live beyond that budget, especially once we have time to invest in research and deal-finding. (Plus, we can live a pretty sweet life for not a lot of money, so it doesn’t take much budget stretching to feel like we’re living a life of luxury.) Check out our plan for living beyond our budget — and then let us know what we missed!

The Fundamental Problem with the 4% Rule for Early Retirement Isn’t the 4% Rule

The question of whether 4 percent is a safe withdrawal rate, as the “4 percent rule” suggests has been — and will continue to be — debated endlessly. Fortunately, this isn’t more of that debate. Instead, let’s look at whether the fundamental underlying assumption of the 4 percent rule — level spending every year — is actually realistic and safe to plan around. (Spoiler: it’s not.)

Financial Independence, Fight Club and the Mindless Consumer Zombie Narrative

I know you’ve heard this one before: the narrative of “working a job you hate to buy things you don’t need to impress people you don’t like.” It’s what I’ve come to call the Fight Club narrative, a distinct strand of the FI movement that posits consumerism as public enemy number 1. And while it’s a compelling narrative, here’s my case for why it’s harmful, and what we should be talking about instead.

$100 to Spend, or a Day of Retirement? Think in Days, Not Dollars, to Speed Your Progress

Vicki Robin’s book Your Money or Your Life had a huge impact on how I view money, asking us to equate money we might spend with the life force it represents, in other words, the time it took to earn it. And while that’s a great starting point for shifting our thinking about money and spending, I have a different proposal for how we should think of that money to speed our progress toward financial independence, focusing not on how long the money took to earn, but on how much time it buys us back.

Calculating Our "Enough" -- Determining the Numbers Behind Our Financial Independence and Early Retirement Plan

How We Calculated Our “Enough” Number for Early Retirement

Today I’m (finally) sharing something that I’ve wanted to write about for a long time, but haven’t tackled because there is no easy formula: how to determine what is “enough” to save for early retirement. “Enough” is perhaps the centrally important concept to early retirement, but it can feel overwhelming to quantify your own. Here’s a breakdown on how we calculated ours, and how you can do the same for your own circumstances.

The Dose Makes the Poison // Radical Moderation in Frugality, Saving and Spending -- not trying to save too fast or spend too perfectly en route to financial independence or early retirement

The Dose Makes the Poison // Radical Moderation in Frugality, Saving and Spending

There’s a principle in medicine that the dose makes the poison. Which means, very few substances are good or bad for us no matter what. Instead, what matters is how much of them we take. And it’s exactly the same with money. It’s easy to make symbols of things like buying lattes or paying for cable, but those behaviors aren’t objectively a problem. What might be the problem, however, is the dose. Why we’re big believers in focusing on the dose, in context, and embracing a sense of radical moderation.

OurNextLife.com // Why “Saving Money” Usually Means Spending Money, and the Mindset We Foster Instead // avoiding the trap of chasing deals and seeing spending as "saving"

Why “Saving Money” Usually Means Spending Money, and the Mindset We Foster Instead

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.

That Thing? You Don't Need It // Invest in things that add value to your life, not things that just add cache.

You Don’t Need That Thing // On Cachet Vs. Value

We are not the poster children for frugality or for minimalism, but we are constantly surrounded by people who have bought all these things. And we want to shout: you don’t need any of it! It only makes you look like you are good at something, versus actually being good at it. Here’s how we learned to separate the things that only add cachet from the things that add actual value to our lives.

OurNextLife.com // early retirement, financial independence, adventure, mountain living, world travel

How Will It Feel to Actually Spend Our Investments?

We’ve spent more than a decade building up our savings and investments, all the while granting them a special status by not touching them. Even shelling out $8,000 for our tax bill this year felt painful. The pain of paying that bill made me wonder if I have “special occasion thinking” around our investments. And if, when it comes time for it next year, we’ll actually be able to spend our investments. Let’s explore…

The Frugal Habits We Don’t Miss for One Second

We constantly come across new tips on how to get to “optimal frugality,” and while we think it’s great to continually try to optimize your spending, something that we now know to be true is that there’s never a point of ultimate optimization, a point when we have everything figured out perfectly. Rather, it’s an ongoing process of dropping habits and adding new ones. Here are some we’re happy we’ve dropped.

Changing How We “Spend” Our Time // Mindful Spending and Budgeting Aren’t Just About Money

so many of us have had the experience, before we got smart about our finances, of not knowing where our money went. as i was reading another blogger’s post about that last week, i had the thought: “where did the day go?” where did the money go? where did the time go? these are not such different questions. here’s how we’re changing our mindset around time, to see it as our most precious asset.