FIRE and expensive things

Discussion in 'Financial Independence, Retire Early (FIRE)' started by Realist35, 23rd Jan, 2020.

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  1. Realist35

    Realist35 Well-Known Member

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    Hey guys,

    We have officially reached our minimum target and we can choose to FIRE now if we we want to. However as I'm 38 I want to work another 10 yrs. I would still be able to retire early but have much more cash to splash :).

    This will allow us to buy some luxurious items. For example i have Rolex submariner on my list, as well as Mercedes C class. However when the time comes i feel like i might feel like i just want to reinvest that money and buy cheaper things :)

    How do you feel in your early retirement - have you kept your frugal mentality or are you spoiling yourself?
     
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  2. euro73

    euro73 Well-Known Member Business Member

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    Each to their own of course , but for me at least - whats the point of retiring that early and having to be frugal to maintain it?

    If you cant spoil yourself a bit , is your quality of life really very different other than not working?
     
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  3. Big A

    Big A Well-Known Member

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    Some would value the time and ability to choose what they do with that time over the material stuff.

    Others like the shiny stuff. Unfortunately I have been sold the western world marketing dream and choose to keep working and accumulating so I can buy more unnecessary shiny stuff.

    The question for you @Realist35 is if you retired today would you be happy and what will fill the gap that working once filled?

    For me other than wanting shiny things if I retired today I think I would be bored as hell. I don’t think I could fill my days with anything meaningful or productive. Over the last few years I have pulled back from work and have much more free time and find myself bored a lot.
    Being of similar age to you @Realist35 there are not a lot of people our age who are retired so it’s not easy to find social circles or activities to participate in with all our free time.
     
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  4. Trainee

    Trainee Well-Known Member

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    Does this level of income cover ppor, cost of children, expenses in old age?

    the risk seems to be that if you quit now, and stop working for a couple of years, you cant get back into your career.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Have your cake and eat it. If you haven't done so already consider salary sacrificing the max to super including the $100k/yr roll forward provisions, that way you will have another tax free nest egg available in 22 odd years or much closer to when you feel that you want to make the break.

    The above takes care of the old age scenario by giving a boost when others are realising that they have made inadequate provision.
     
  6. euro73

    euro73 Well-Known Member Business Member

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    His pension age will likely be 67, so it's 29 years away... but I agree that he could definitely pump up the super if its an option....
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Pension age and age to access super see different, super is 60, pension is 67 ATM. Reliance on the pension was bit mentioned.
     
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  8. Sackie

    Sackie Well-Known Member Premium Member

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    I'm not 'retired' as I actively work with real estate but I am financially free. I shed the frugal mentality long ago. The point of a frugal mentality( for me) is so that one day you don't have to be frugal. I splurge alot. Lifes too short to act poor unless you really have no choice. Also I think there's a great difference between having a frugal mentality in terms of budgeting whilst maintaining a mindset of abundance. You certainly can have both at the same time. One is an abundance of gratitude, feeling of opportunity, etc and the frugal part is basically responsible spending, saving and investing.

    But everyone is different. Each to their own really. Whatever makes you happy.
     
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  9. George Smiley

    George Smiley Well-Known Member

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    I've been frugal for so long I don't think I could go back to coveting expensive material possessions, I'm just wired differently now. Not trying to grandstand here, if you want expensive cars etc then go for it, nothing wrong with that. I'm just highlighting that relative frugality is more common among well-off people (I'm not one of those though) than many people think, possibly because it becomes a habit.
     
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  10. Car tart

    Car tart Well-Known Member

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    I believe that many people have to firstly define the meaning of what retirement means to them. I Believe there are many stages of retirement.
    Not doing what you don’t want to.
    Not doing anything for financial gain
    Not looking after your personal portfolio
    Not travelling for anything but fun
    Doing only what you feel like doing.
    Taking x number of overseas trips a year
    Buying a car every three months
    Living x months in your holiday home in Australia or abroad
    Doing x cross country car rallies a year
    Doing x international cruises
    I’m sure everybody could add there own stages.
     
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  11. willair

    willair Well-Known Member Premium Member

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    If this was me and you have no children just the person you wake up next with a smile on your face ,, then i would walk away from paye now for me it was 45 and 20 years ago when the Accountant said ..How much do you xxxxing want ..

    That gentleman long gone as he passed away over 15 years ago,so i guess what i''m trying to say is everyone may plan to live to beyond 65 enjoy all the 200k after tax ..But the simple raw data % wise is and lot don't make it too 65..Simple as your 38..That's 27 years from 65,55 will be a different number 45 will be a lot different again..Then ''X'' the amount of years in weeks days till 65 then 55 then 45 years as in weeks it may shock some people depending on their age..Very simple to work that one out..imho..

    With Merc's from c class up too a fully banged up German made AMG's they only sell for what merc's dealers will trade them for ,so never buy one the floor new they are worth nothing only the trade in price 2-4 years old with full service log books prices in trade in terms would shock most people ..

    With the Rolex that you talk about as i know a small amount the fakes and the real deal boxed never opened with the receipt as people who act outside the law have very good tastes ..Till the door gets kicked in at 5 in the morning and the searched warrant is being recored live handed over..
    Rolex that in any Rolex outline online or shop-front sell for less then 500-bucks at auction most times and the watch you are talking about can sell for 15k upwards ..

    I have been after this Hermes rose gold bracelet for about one year now for my Wife ,second hand US or Euro in Australian dollars just over 2-5k ..One was at the auction the other day and as the auction always cover themselves on the legal side and always say ''lookalike''..I checked the code and a few other items at Hermes site then bought it for 130 bucks..
    It's a different world out-there when you are free,so don't waste any time and good luck..

    I have been going to the police seized auction's for over 30 years,and when you stand in the crowd ,with federal police watching who's buying the 1% OMG 250 grms neck chains and 30 grms 18ct diamond,ATO people watching who buying what e-bayers gumtree buyer then simple not dress to well people like me everything you want is there as long as you just keep your hand in the air know your limit ..very simple..
     
    Last edited: 23rd Jan, 2020
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  12. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Plus Member

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    When you are on your death bed do you think you will be laying there remembering all the things you have bought. Or will you be thinking about the experiences and memories.

    I think you can still be frugal in terms of a minimalist lifestyle, but have luxury experiences such as going on luxury cruises while driving to the boat in your 1980 commodore. Of flying first class while living in a $100,000 property in tasmania.
     
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  13. Harry30

    Harry30 Well-Known Member

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    On that note, I find when I travel, mixing the luxury with the cheap works far better and provides for a richer experience. Enjoyment wears off if you are staying in a 5 star hotel every night.
     
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  14. SatayKing

    SatayKing Well-Known Member

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    Going to the theatre, music and art including those I have purchased, even journeys which may not involve oversea travel. Time with my children.

    Not overly expensive to me but worth way more
     
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  15. Realist35

    Realist35 Well-Known Member

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    Thanks for your comments guys. It's nice to see how different everyone is.

    For me, I'm eying on of these two babies.. just looking at them as I'm still a tight a** until i reach fat fire. :)

    Screenshot_20200122-165656.png
     

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  16. Lacrim

    Lacrim Well-Known Member

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    What site do you go to for the police seized auctions?
     
  17. Big A

    Big A Well-Known Member

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    What’s the Rolex on the left in that pic retail for these days?

    Apparently that’s not an easy watch to find these days. Can’t just walk into Rolex and pick one up.
     
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  18. Realist35

    Realist35 Well-Known Member

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    The watch on the left is Rolex submariner no date. It's one of the most popular rolex watches, they started making them in 1950s and they still make them. It's a timeless piece. Pretty much all luxury watch shops should have it. You can get it from Watches of Switzerland Perth for $11,000 (minus discount).

    Rolex Submariner | Watches of Switzerland
     
  19. Big A

    Big A Well-Known Member

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    My mistake. I thought it was the Sea Dweller. They look similar.

    Did you say discount? I didn't think you could get discounts on Rolex watches. Walk into Rolex Sydney and you will be lucky to get a watch let alone a discount. I was there last month and they barely had anything to sell. People had to put there name down and would receive a call when stock came in.
     
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  20. willair

    willair Well-Known Member Premium Member

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    Caveat emptor..

    Whitegoods, Electrical, Collectables Photos |

    Be very careful who stand's behind you,as most that look like they have 20 cents in their back pockets and have a 25 year old gordon and smith surf t shirt and a dumb look on their face are the ones that wait till the final bid then start..imho..
     
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