$100k salary, $50k lifestyle.

My wife and I are relatively thrifty as well. We earn a decent combined income (she earns significantly more than I) but we live pretty simple lives that revolves around our kids/family/friends. Our main treats are holidays/travelling but other than that we're pretty low maintenance.

Money = time
Time = money

Sorry to keep on harking on about these:

Reject lifestyle inflation
Understand The Marginal Utility of Money

 

@MyDarlinghurst I feel for you. I can relate. I feel like I’ve put my life on hold for the past decade. Not all of it but most of the time. I’ve realised I need more balance and that it’s important to enjoy life today as well as investing for the future.

No point killing your self now if it’s making life miserable!!! and who knows how much longer you have on this earth to live!! That’s no way to live!!

I will still retire on a reasonable amount but I don’t mind if it takes longer than planned and if I have a bit less. I can always work 2-3 days per week in my 70’s as another income stream along with my retirement income if I have to, health permitting.

 

@MyDarlinghurst

You mention you have a fully paid off PPOR and a fully paid off ip. That’s awesome! Your in a good position to be in! Do you have any equity in your IP’s? Have you thought about selling one or two to take some pressure off. It could enable you to save a bit of cash and you could buy again later down the track when it won’t impact so heavily on your lifestyle and your sanity. It must be extremely stressful for you.

 

I started doing serious full-time work about 10 years ago. Since starting, over a period of 18 months, my salary doubled. But I realised I did not have the any more freedom than when I was a graduate salary. My net worth remained the same; only I ate at nicer restaurants. If anything, I realised I was sinking more and more with every promotion into the office trap. Heck, once I was informed of a promotion and before I could even call my wife and do a fist pump, I was called into my supervisor’s office to discuss “new responsibilities” now that I was in a more senior role.

Like Steve McKnight said in his book, I looked at my managers and saw how hard they worked and for such little reward. Most of them depended on coffee throughout the day to be stimulated and apparently hit the alcohol and watched TV late into the night to wind down. Obviously, with a workload and responsibilities like that, they were hardly going to go home, cook delicious and healthy dinners and play with their kids, tuck them in bed and sing a lullaby. Most went straight to the café downstairs (too busy to even walk to the nearby mall) at lunch and this clearly showed up on their waistlines. Bizarrely, in spite of being on $120K+, many were a pay check or two from being broke! It baffled me to see them agonise over work budgets and work related stuff but could hardly be bothered to monitor their own budgets or pay attention to their health.

And I was constantly told to work hard so that I too could become part of that club! It was like that investment book “where are the customer’s yachts”? I kept asking where is the famed lifestyle, freedom, health for these managers of mine??! I knew even back then that to follow the same thing when I clearly wanted different things in life was nuts. Only I did not know how or whom to ask.

Unfortunately, it took me a couple of years to figure out that opting out of the rat race was an option and early retirement was a definite possibility; never mind that everybody around me thought that retiring early was a ludicrous concept. Thankfully, the investing fever got hold of me and the last 8 years has been bliss. Not just because we have made tremendous progress with our assets but for the simple fact that our life has much more meaning to it now. A bad day at work or the overall ennui that a 40 hour work week can throw at you is just a distraction when I keep my eye on the main goal. Also, learning about investing has given me a fantastic insight into my own psyche and a much better understanding of how the world around me works. The last 8 years has been the happiest of my life. Finding my life purpose (for this stage of my life at least) in my search for freedom for me and my wife to be around for each other and for our gorgeous daughter has given me a fresh lease of life (including being fitter now than when I was 18!).

 

giving is easy .

giving generously is hard for many people.... regardless how the wealth is generated.. but report do say self made people find it easier to give compared to inherited.

 

Mine would go up if I was travelling overseas. I haven't been overseas for ages though. Too busy with property projects. I need to set aside some travel time. Not sure where I want to go next. Maybe Canada?

 

the figures I used were just for an example. The main point is to do with what people earn and their penchant to continually ramp up the lifestyle spending to absorb all their imcome....we've all done it, but I expect everyone here in PC has since seen the light.

 

Oh really....
I guess flying business class is a priority then:
Flying First Class and Business Class
Flew Business Class last year to Bangkok.. Economy was about $900 to $1200.... I paid $3999 return in business class ... 3 x the rate of economy .

Just bigger seats thats all .
Nothing much different from economy just bigger seats .

 

@Ace in the Hole

I think you're mixing up different users. MYDarlinghurst /= Darlinghurst Boy

 

I think you will find its his latest reincarnation.

 

But I guess you did not fly Qatar BC, massive difference from economy

 

@Plutus same creature.

 

I think DB is taking the ****

 

Perfectly said.

 

Yeah that kind if bypassed me too

 

Oh

 

@DaveM , @Ace in the Hole , sorry didn't realise they had multiple accounts.