Later Retirement Extreme -Earned Income Resilience/Shelter Expense

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classical_Liberal
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Re: Later Retirement Extreme -Earned Income Resilience/Shelter Expense

Post by classical_Liberal » Wed Aug 02, 2017 8:20 pm

7Wannabe5 wrote:
Wed Aug 02, 2017 2:27 pm
Maybe there is a rational formula or rule of thumb for ratio of liquid roll/lifestyle-expense?
Yeah, that's the thing... So often these things tend to be serendipitous in nature. It's virtually impossible to rationally predict whether next month holds a sale on chicken or an IPO. The more you have, the more options de jour. Obviously there has to be a limit of the marginal utility for personal purposes. What that is? I have no clue.
7Wannabe5 wrote:
Wed Aug 02, 2017 2:27 pm
Part of where I am coming from with my magnetic draw to OPTION B is that I did the mental exercise where you choose what you would do if there were no limiting factors or restrictions of any kind put upon you, and I immediately went to "Check myself into a spa retreat." , and then because I am almost reflexively frugal, I asked myself "How can you create your own spa retreat for you?"
Funny you mention that. I had an issue at work that felt like a very big straw on this camels back. This particular issue would have made my life miserable for some time to come. I had decided I was going to put in my notice over it as the utility of more money is continually decreasing. It was time to execute a previously imagined "Option B". Grandiose plans came into my mind! I became very excited and more energetic than I had been in a long time! When I spoke to my supervisor about my plans to leave, siting this issue as too large a burden, they immediately reversed course and went back to the status quo. I was disappointed to say the least, now work wont be miserable enough for me to leave. :lol: I'm not sure if that's a good thing? FU money status does have it's advantages... I guess.

PS Go super trooper!!

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7Wannabe5
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Re: Later Retirement Extreme -Earned Income Resilience/Shelter Expense

Post by 7Wannabe5 » Thu Aug 03, 2017 6:44 am

classical_Liberal wrote:Yeah, that's the thing... So often these things tend to be serendipitous in nature. It's virtually impossible to rationally predict whether next month holds a sale on chicken or an IPO. The more you have, the more options de jour. Obviously there has to be a limit of the marginal utility for personal purposes. What that is? I have no clue.
Well, for the purposes of power or "counting coup", there is no limit. You can never be too rich or too thin (sigh.) But, for instance, you don't hear people saying stuff like "I have 5 wives-each more beautiful than the last, 12 sons-all fine warriors, 300 sheep, 10 camels, 5 of the finest Tabriz carpets, and 2 ingots of gold." so much these-a-days. If the opportunity presents itself that you could pick up a 6th wife, but her father is only willing to trade for 12 camels and the lend of 20 warriors for a little upcoming skirmish he is planning, you are bumming.

The local bus service I have been utilizing gives change in the form of a ticket credit. So, I have to remember to use tickets first, cash second whenever I ride. If for some reason I have to leave the area without much notice, I may be left with a useless ticket or two in my change purse. My 77 year old friend with net worth over 70 million is going to be left with quite a few useless tickets in his change purse, can't even transfer to his heirs without tax penalty, but he still goes to work, running his own business, 5 days/week.

A red squirrel may collect and store as many as 15,000 seed cones in one season. A tiger may consume as much as 88 lbs. of prey in one meal and will have to hunt around 50 times/year. If I happen upon chicken on sale for .29/lb very close to lowest price ever previously noted), my limiting factor would be either volume of freezer space available for long-storage at current residence, predicted length of stay at current residence, or total amount I would prefer to eat or cook to share within 6 months. So, the most cash I would ever benefit from having on hand in order to stock up on chicken would be some amount less than $20. Similarly, sometimes when I consider the marginal utility of losing another 20 lbs. from my person, I realize that I will simply be forgoing breast men in favor of leg men, so it is pretty much a wash. IOW, maybe there is such as thing as "thin enough for MY purposes" or "rich enough for MY purposes."

So, if one of my purposes (or favorite fun puzzles) is to figure out how to scavenge, create or re-configure (NOT do without!! I do not like that option!!) my needs and wants in a manner that allows me to bypass money, then obviously there is no ideal amount of money that is too little for my purposes. OTOH, I grudgingly recognize that there is some amount of the Emperor's script that I must feed into the machine in order to be recognized as an adult citizen, so my ideal amount of savings might be the total amount of script I must proffer over the expected remainder of my lifetime. Otherwise, I should be constantly striving to increase all my other forms of reserved resources, favoring internal (health, skills) over external.

classical_Liberal
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Re: Later Retirement Extreme -Earned Income Resilience/Shelter Expense

Post by classical_Liberal » Mon Aug 07, 2017 7:22 am

@7WB5

I love anaolgies!

We've spoke on this subject before, maybe in a bit of different form regarding balancing current me vs future me priorities. After some self analysis on the subject, I've found that my largest past "regrets" come from short-sighted decisions I made that were not in line with values and lifestyle preferences (at least the lifestyle I wanted to lead at the time). For instance, I do not regret my consumerist, free spending ways of my 20's. At the time, I simply had no reference point for doing anything different and my goal in life was work-hard/play-hard. Sure I could have found information on living a different lifestyle, it was certainly available, but I wasn't in an emotional or intellectual postilion to do so. Even If I had met a young grad-school Jacob himself I would have scoffed at ERE. It's like kicking myself for not buying Amazon stock with my high-school graduation money in the mid 1990's, even if a time traveler came back and told me to do so, I wouldn't have believed it. Besides, that was my beer money! Even now, knowing the "good" end result of such a purchase or lifestyle change, I'm pretty sure past me wouldn't have been able to act correctly, so why regret something that was impossible?

OTOH, I do regret making the wrong decisions for future me when I knew better and was capable of making a better choice. Treating a "true-love" ex-fiance badly in my 20's comes to mind. Even though I have no idea how life would have turned out if I had committed to her (maybe really good, maybe really bad). I wish I had given it a run, because with a little patience and effort I WAS in a position at that time to love (probably more so than cynical me now). A potential missed opportunity I may never have back.

Currently I am very focused on the financial capital component of ERE. I have designed a life in the short term that is very efficient in making progress to that particular goal. Despite sacrificing some personal immediate happiness and other personal goals, in a potential future where I lack the financial resources to "buy in" to the lifestyle dejour I crave, I believe I will look back to this moment and regret not sticking it out for as long as I can tolerate my current situation. At this time, I am uniquely positioned emotionally, intellectually, geographically, and physically to save some money. If I get to a point of burn out, then at least future me will realize I just couldn't go on any longer and have no regrets, even if a situation arises where lack of financial capital is a limiting factor. IOW, it'll be easier to not cry over spilled milk if I know I did everything I could to avoid the spill (sippy cup?)

I do, however, always keep in mind that life is short and I'm not a spring chicken. My current employment reminds me daily how fragile human life and health can be, even for those of us who live healthy and robust lives. Devastating, life-changing medical diagnosis or accidents are always knocking at our door. A prudent person should live with the knowledge of this risk in the back of their mind (YOLO).

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7Wannabe5
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Re: Later Retirement Extreme -Earned Income Resilience/Shelter Expense

Post by 7Wannabe5 » Tue Aug 08, 2017 11:44 am

@classical_Liberal:

I grok where you, and everybody else on this forum, who is approaching ERE from an FI first sort of perspective is coming from. I am just trying to be less defensive and more curious about my own perspective or path or book of maps. I don't know exactly what I am going to build with the set of tools and resources I have at my current disposal at this juncture, but it seems like it would be some combination of unlikely or forced if it were to look very much like what a 22 year old INTJ man fresh out of college with a STEM degree would likely choose to build.

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