Income and Expenses

Travel accounts for 50% of my total yearly spend.

 

I'm currently spending 30-40% on travels, but I estimate it will be >60% when I retire.

 

Speaking of Expenses . . . Laundy Detergent.

I attest to using the cheap $2 2L Woolies liquid detergent, and I say paying $14 "half-price" for OMO is unnecessary.

 

The trouble is with many of these FIRE types.... or even just people who have had to be frugal in the past, before FIRE became a thing - that it becomes a lifestyle to the point where it's an ingrained habit of miserliness / too much of a mindset.

There is no grand revelation and never a point where they start spending the 150k a year in "retirement" which they could, once they've lived for 30 years spending 20k a year.

The habit is so ingrained and the guilt so massive that they can never live normally. I've seen this with some relatives - live mortgage free in a decent suburb in a lovely house, with big pensions but they can't really fully enjoy their retirements, or act normally, as due to previous decades of frugality, they continue to sweat about spending the smallest amount of discretionary money.

They continue to share a slice of cake - or even a cup of tea - when going out, order the cheapest item on the menu, regardless of whether they really want it or not, even if it's a treat or celebration meal - even when there's more coming in than they could possibly dispose of and their asset base is several million $

I think that's rather sad.

 

being a tight arse could also be a stepping stone to allow for early retirement to be free from the cubicle which allows for more money to be make with increased spending following.

 

I wouldnt say never but it does take a conscious effort to not fall into the same old routine, for me that effort is alot easier when you have a good understanding of your financial position.

Not just 'I think we are ok for cash' I am talking about a deep understanding of your financial position and how that can be maintained/grown into the future no matter what eventuates.

When you have confidence in your financial position it is alot easier to open the purse strings, no matter how much the tightarse version of yourself sitting on your shoulder tells you no.

 

Saving and spending are often opposite ends of the spectrum.

I understand @Jimmyay's point. If you develop habits, mindsets, and routines (e.g. frugal behaviour) for 30 or so years, there's no way you can just change that behaviour overnight because you all of a sudden hit your 'fire goal'.

It reminds me of when someone forces retirement at 60 or 67, and expects to be able to just fill their monday-friday overnight. It's a slow and gradual process, slowly adding one activity a week, building new communities, hell maybe even making friends if you didn't have any.

It's the same with going from being frugal to a spender. Not a YOLO spender, just someone who doesn't need to be so money conscious 24x7. I think many fail to underestimate the impact it has on others and just how hard this transition is for the individual. Many anecdotal stories of people forgetting 'what the point' of being frugal often is.

 

I'm frugal in some respects like not eating out too often, but that's really to fuel the thirst for more travel, which we do A LOT of.