I have been thinking quite a bit about the Living part of LBYM. We are financially independent (yay, and thanks to many who shared their lessons here and on other boards).
When I was young, wealth meant I would have enough to buy any book I wanted to own, at any time. These days I don’t buy books, but I do have the things I want in addition to things I need. So I’m wealthy. (My wants are, by some measures, relatively modest. Piano lessons and someone to clean my house seem to me to be the greatest luxuries.)
Even with our luxuries, we have considerably more income than expenses. We max out all the usual retirement savings, each have our own investments. I swept our joint accounts of excess and put it into a Vanguard fund over the summer, and excess has built up again. Even with our luxuries, our pandemic expenses are lower than our previous expenses. We give to charity at a rate that pleases us.
So – Living. If we wanted to, given where we are financially, we could expand the definition of “Living.” I’ve considered a few options. More/bigger vacations. Meal prep services. What I don’t really have is a structured way to think it through.
The only example I have found of structured ways to think through expanding the “Living” part is Ramit Sethi’s “I will teach you to be Rich.” It’s a podcast, and I understand that he also has a book. Has anyone else thought this through and found any good structures for it?
ThyPeace: "I have been thinking quite a bit about the Living part of LBYM. We are financially independent (yay, and thanks to many who shared their lessons here and on other boards).
(My wants are, by some measures, relatively modest. Piano lessons and someone to clean my house seem to me to be the greatest luxuries.)
So – Living. If we wanted to, given where we are financially, we could expand the definition of “Living.” I’ve considered a few options. More/bigger vacations. Meal prep services. What I don’t really have is a structured way to think it through."
Let me quote the late, great JABoa about living - Post 40933 on this very Board - “I bought a new, French double manual harpsichord, custom made for me by one of the world’s most famous builders, for $12,201 in 1984” and he never regretted it and enjoyed it until the day he died (almost 20 years ago).
My first thoughts are be careful of items that become recurring expenses or the require ongoing secondary expenses.
Also be careful so that any additional luxury does not become a new necessity - because often a luxury, once enjoyed, often becomes a necessity. C. Northcote Parkinson
Consider making your home/life more energy & water efficient–solar panels? electric car? low-E windows? xeriscaping? more efficient HVAC/appliances/on-demand hot water heater?
Consider sharing the wealth by giving employees (cleaning ladies, landscapers, waiters…) a raise/bigger tips.
Consider checking out how friends & relatives are doing re inflation/employment/savings. Could anyone use some financial help?
Consider having custom shoes made from incredibly soft leather, a suit/dress designed just for you, silk undergarments…
Consider retiring early, leaving your position to someone who needs it more than you do(!). Then volunteering for a cause you believe in or taking a job at lower pay that would help the poor/world peace/your political party (the Biden Admin could use some help!).
How about a new mattress, more convenient kitchen, gym equipment…?
Vacation home you can offer to friends and relatives as well as use yourself?
Thanks for the reminder of the harpsichord, JAFO. That story is often in my thoughts as I consider how to expand our “Living.”
And thanks, too, to you and Alstroemeria for the specific examples. They fall into broad categories that I’ve considered – stuff for us, experiences for us, help for people we know, help for people that we don’t know.
Giving up my job in favor someone who needs it more than I do is also interesting. Not only is it interesting to contemplate, but my reflexive “hey that’s MY job” is something that I will need to get over if I’m going to actually make changes when I’m ready to. No matter how much I think it’s my job, the entire world will keep spinning on its usual course whether I’m in it or not.
ThyPeace, spent some time talking to DH about what to add to our days this year. None of the things to add are going to cost much, but we might use a meal prep service occasionally.
"I’ve considered a few options. More/bigger vacations. Meal prep services. What I don’t really have is a structured way to think it through. "
Structure tends to require definitions - so ----- what is important to you? What is important to
the family? Where do see a value in “excess” cash flow being directed?
Donations? Say putting some funds into a local library, art museum, senior center, local
scholarship fund? Contributing toward a local park, setting up some pre-school library or
playground?
Howie52
Sometimes things that appear to be work actually do have value.
I don’t think this could be attributed to Maynard G. Krebs.
Begin with the end in mind. For me, the greatest enhancement to Living is peace of mind.
The harpsichord story shows that life can be short, so enjoy luxuries now.
To counterbalance that, let me point out that life can be LONG…much longer than you might realize. You might need a startlingly large amount of money to take care of yourself in old age. According to the Fidelity Retiree Health Care Cost Estimate, an average retired couple age 65 in 2021 may need approximately $300,000 saved (after tax) to cover health care expenses in retirement. https://www.fidelity.com/viewpoints/personal-finance/plan-fo…
In the United States, assisted living costs an average of $4,300 per month, according to the 2020 Genworth Financial Cost of Care Survey. Keep in mind that this is the national average, and costs in different states and cities differ dramatically. https://www.assistedliving.org/cost-of-assisted-living/
Read “Money Magic: An Economist’s Secrets to More Money, Less Risk, and a Better Life ,” by Laurence J. Kotlikoff, before you make any decisions. Depending on your age and risk tolerance, you may decide to buy long-term health care insurance, which is less expensive when you are young. (DH and I started ours at age 60.)
Even though DH and I are likely to die in our early 70s due to health conditions and family history, it’s possible that we could live longer. If you and your husband are healthy, and come from long-lived families, you could need a bundle of money as you age…and age…and age.
Some people would say, “Enjoy it while you can.” There needs to be an awareness of balance – between enjoying Living now and shortchanging your comfort later.