Hristo's FI Journal

Where are you and where are you going?
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Hristo Botev
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Re: Hristo's FI Journal

Post by Hristo Botev »

I finished the Revenge of Analog book, which was a thought-provoking read. I particularly enjoyed the sections on the revenge of print and the revenge of retail.

On the issue of print, he talked about the concept of "finishability," which is actually picking up a book (or magazine, or newspaper) in print, reading it, finishing it, putting it down, and feeling as if you actually accomplished something, and are smarter for it. Contrast that with the never-ending hyperlink chasing exercise that happens when you read anything online, which always leaves me feeling exhausted and overwhelmed.

On retail, I hadn't really thought about the fact that "free" shipping with Amazon basically means shipping paid for by Amazon's shareholders (of which I'm sure I'm one), because Amazon barely operates at a profit (or at least that was apparently the case back in 2016 when the book was written). It's just weird that society is funding the destruction of brick and mortar retail, complaining about it, and then continuing to buy Amazon stock to make sure it keeps happening. And Amazon is just playing a game of last man standing--destroy all your competition by undercutting costs and offering unsustainable free shipping; and then what? At some point business is actually about making money. What's the endgame?

I guess more and more I like the (analog) idea of spending good money on good things, taking care of those things, and buying those things through trade channels that make my community (and therefore my life and my family's life) better. The fact that buying things in this way is more expensive is good in a number of ways, most importantly perhaps is that it causes you to consume less, meaning you don't think of the things you buy as being disposable, which keeps those things out of landfills and likely results in you actually spending less in the aggregate.

Speaking of which, prompted by the Analog book and the ensuing discussion I had with DW, DW had the idea that we check out for the first time a local independent bookstore that's relatively close to our house but in a 80s-style strip mall in a part of town that we don't generally visit. It was great, and I walked out with a used copy of C.S. Lewis's Mere Christianity with a wonderful handwritten note on the inside cover from a woman who had given the book to a man, hoping that it would serve as an introduction for him to her faith. Story within a story; love it.

Hristo Botev
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Re: Hristo's FI Journal

Post by Hristo Botev »

And I love my 80s Schwinn for this very same reason: Every time I get on it to go to work or run an errand or whatever, I think of how many people have enjoyed this bike over the past 3 decades, and how wonderful it is that back in the day even cheap, entry-level bikes were built to last.

Hristo Botev
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Re: Hristo's FI Journal

Post by Hristo Botev »

I didn't realize until @Suo mentioned it in his journal that there is a Jordan Peterson thread on this forum. There goes the afternoon.

Hristo Botev
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I love Harry Crews

Post by Hristo Botev »

"The novel Car would, I think, be a better book if the automobile outraged me less. I hate its stifling presence and abhor the sheer stupidity of the automobile industry. Consider this question: How much sense does it make for a 113-pound housewife to get into 4,000 pounds of machinery and drive 2 blocks for a 13-ounce loaf of bread? That question and others like it made writing the book Car inevitable."

From Harry Crews' 1993 introduction to the Harry Crews reader ClassicCrews, describing his novel Car.

Hristo Botev
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Re: Hristo's FI Journal

Post by Hristo Botev »

F@#k December.

December 2018 net worth numbers

Net worth w/o house: $320,024.49
Net worth w/ house: $497,355.05
% of $1.8m target net worth: 27.6%
Net worth change from last month: ($16,082.07)
Monthly PPI from total net worth: $1,657.85
"True" PPI (excluding house, 529 from net worth): $1,002.04

December 2018 savings rate numbers

Total after-tax income: $15,473.58
Total expenses: $12,100.96
Surplus/profit: $3,372.62
Savings rate: 21.80%
NW needed to cover expenses: $3,630,288.00
[S]WR based on total NW: 29.20%
[S]WR based on total NW, excluding home and 529 accts: 48.31%

DW and I actually agreed on a budget for January, with the understanding that we'd actually try and stick to it. That budget would result in a savings rate of 61.50% with no additional income coming in. We shall see.

Hristo Botev
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Re: Hristo's FI Journal

Post by Hristo Botev »

Just for the hell of it, non-work related New Year's resolutions for 2019:
  • Average 50%+ savings rate for the year (this is an ERE forum, after all)
  • Pray daily (suscipe; St. Joseph's prayer; rosary; kids' prayers; examen; lectio divina)
  • Monthly confession
  • Monthly adoration
  • Yearly retreat
  • More board/card games with kids
  • More family hikes and public park time
  • Be a better dog owner, and specifically, more walks and trips to the park
  • Make my bed daily, and don't allow dishes to pile up in the sink
  • Read more books (aim for a book a week); listen to more music and podcasts; and watch less TV
  • Schedule each day and stick to it (including up at 5:30 and asleep by 9:30)
  • Workout 5x week (HIIT run; HIIT body weight exercises; HIIT run; power lifts with weights; distance run, swim, or bike)
  • Shower at the gym to save money on gas
  • Start 2019 with Whole30 in January, and eat more whole foods and drink significantly less throughout the year after January
  • Weight to 160
  • Actively participate in selected social/religious/professional organizations
  • Always think bike/walk first, car second
  • More handwritten correspondence
  • Agree to monthly budget and stick to it
  • Spend more time with friends who have a positive impact in my life, and less with those who don't
  • Tackle honey-do items around the house as I encounter them, rather than waiting to tackle them at some indefinite time in the future

    Hristo Botev
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    A glimpse into how you poorly manage a budget with a family

    Post by Hristo Botev »

    • Dec. 30: DW and I agree to actually try and stick to a budget for January, which would result in a 65-70% savings rate. That budget includes $375 set aside in a catchall and impossible to predict category that includes entertainment, travel, personal (haircuts for DW, etc.), kids recreation (club soccer, etc.), and gifts.
    • Jan. 1-3: Everything is going swimmingly, and DW even avoids the very strong temptation to spend money on activities with the kids (movie, bouncy-house type place, whatever) when she's stuck at home with them while they are still out of school, and they are jumping off the walls because the weather is crappy and you can only play so many board games. (This 2.5 week winter break nonsense is ridiculous; DW took a PTO day on Wednesday just to avoid having to pay for yet another day of "camp" for the kids while they are on break.)
    • Jan. 4, 10 am: I receive a text from DW that she'd forgotten that the registration fee for the semester for kid1's girl empowerment running club (don't ask) was due in January, at a grand total of $145. Mind you that kid1's running club meets while she is at aftercare, for which we pay about $170/month. So we're double-paying for people to watch and recreate kid1.
    • Jan. 4, 10:30 am: I say cool, that leaves us with $230 for the month for that catchall category, which should be fine because we don't have any travel in January and we've already paid for club soccer, etc., and we don't have any big family birthdays in January.
    • Jan. 4, 11 am: DW tells me that kid2 was invited to 3 different birthday parties on Sunday, and kid1 was invited to 1. And none of the parents for those 4 kids did the decent thing of saying in the invitation that gifts would not be accepted. One of them actually said that gifts "would be appreciated, but are not required." WTF does that mean?
    • Jan. 4, 11:30 am: I say no big deal, we can certainly get 4 kids' bday presents for under $230.
    • Jan. 4, 12:00 pm: DW tells me that we also need to get a birthday gift for a good mutual friend who invited over for a party at his house. Likely a $30-40 bottle of whiskey. And we need a babysitter for that party.
    • Jan. 4, 12:30 pm: Again, I say no big deal, 4 kids' presents and 1 adult present and a babysitter for $230 is definitely doable.
    • Jan. 4, 1:00 pm: DW tells me that she has a hair appointment scheduled in January that she'd forgotten about. Apparently that's $125 (oh how I love being able to cut my own hair myself at home).
    • Jan. 5, 1:30 pm: I say whatever, we've got $100 set aside for "ATM," and that money generally goes to babysitters anyway. So we've got $105 left over for 5 presents and a babysitter in the catchall category, plus $100 in the ATM category.
    • Jan. 4, 2:30 pm: Kid2's school sends an e-mail about a little kids' basketball league that the school is doing beginning in January that costs $55, due to be paid by Jan. 7. The e-mail was supposed to have been sent out at the beginning of December, but the league organizer screwed up.
    • Jan. 4, 3:00 pm: DW asks if I got the e-mail and asks (but not really) if I think we should sign kid2 up. I say no, given the late notice, but I am overruled by DW, because kid2 is certifiably obsessed with sports (true) and because all of kid2's school buddies are going to sign up. If you're keeping track, that's $50 remaining in the catchall category and $100 in the ATM category, before accounting for the 5 birthday gifts we have to get and babysitter we have to pay for.
    With 4 weeks still left to go in this month, things aren't looking good for my catchall budget category.

    suomalainen
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    Re: Hristo's FI Journal

    Post by suomalainen »

    Ha ha ha. Best laid plans never met a mom of multiple kids. Today I calculated out that even if we never saved another dime (other than 401k and HSA contributions and bonuses) and we spent every salary dollar direct deposited, we'd still be ok if I worked until the kids are gone (9 more years). Even more cushion if I work until the youngest graduates college. I guess that's not meant to be aspirational or anything, but more a "could be worse" perspective. At this point, I'm just trying to survive to emptynesthood. How much is sanity worth? :?

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    jennypenny
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    Re: Hristo's FI Journal

    Post by jennypenny »

    @budget: I do a quarterly budget instead of a monthly one, and I find it smooths out the unevenness in budget spending. Some months have a lot of social obligations, others have a lot of kid-related fees, but quarter to quarter I find it's pretty even. It also means the budget amounts are larger which gives me more wiggle room.

    @praying daily: I've used a Pray the Rosary video to get everyone to pray together. It was easier when the kids were little (they're wired to pay attention to screens now), and to be honest, I find it helpful for tuning out distractions when my mind won't settle down enough to do it on my own. There must be a podcast available, too, but I haven't checked.

    Jason

    Re: A glimpse into how you poorly manage a budget with a family

    Post by Jason »

    Hristo Botev wrote:
    Fri Jan 04, 2019 5:29 pm
    • Jan. 4, 10 am: I receive a text from DW that she'd forgotten that the registration fee for the semester for kid1's girl empowerment running club (don't ask)
    Dream on.

    https://www.girlsontherun.org

    "we inspire girls to be healthy, and confident using a fun, experienced, based curriculum which creatively integrates running". In other words, "Pay us $145 and we will yell "On your mark, ready, set, go." I'm guessing that doesn't include the additional $25 upgrade for the "Girl empowerment jumping rope club."

    Your unwavering faith in God in the face of these day-to-day circumstances is truly inspiring.

    Hristo Botev
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    Re: Hristo's FI Journal

    Post by Hristo Botev »

    suomalainen wrote:
    Fri Jan 04, 2019 6:06 pm
    Today I calculated out that even if we never saved another dime (other than 401k and HSA contributions and bonuses) and we spent every salary dollar direct deposited, we'd still be ok if I worked until the kids are gone (9 more years). Even more cushion if I work until the youngest graduates college. I guess that's not meant to be aspirational or anything, but more a "could be worse" perspective. At this point, I'm just trying to survive to emptynesthood. How much is sanity worth? :?
    I'm with you. One thing I tend to not remind DW of on too regular a basis when we feel the bookkeeping/money-in vs. money-out squeeze is that between 401k, HSA, 529, mortgage principle payments, and auto transfers to savings and investments, we've got about $9,000 in automatic savings each month that we never see. That's not as aggressive as I'd like to be, but it's enough to most likely have us in a very comfortable FI position by the time the kids finish high school. So the "squeeze" we feel many months is in part an artificially created one.
    Last edited by Hristo Botev on Sun Jan 06, 2019 7:23 am, edited 1 time in total.

    Hristo Botev
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    Re: Hristo's FI Journal

    Post by Hristo Botev »

    jennypenny wrote:
    Sat Jan 05, 2019 7:33 am
    Good idea on the rosary video for the kids. We'll give that a shot.

    Also good idea on the quarterly budgeting. The problem we have is that with two young kids this is all just unexplored territory for us, and so we don't have much of a way to predict what the expenses will be. As soon as we think we have a handle on things, along comes some new expense that we didn't even know was a thing but that apparently we are supposed to do.

    Hristo Botev
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    Re: A glimpse into how you poorly manage a budget with a family

    Post by Hristo Botev »

    Jason wrote:
    Sat Jan 05, 2019 8:28 am
    Yep. If any of you out there in the ERE community is looking for a lucrative side hustle, there's a growth industry in "child-centered, expert-guided, emotionally absorbing, labor intensive and financially expensive" child rearing. https://www.nytimes.com/2018/12/25/upsh ... nting.html. It's shocking just how much upper-middle-class, two-income Americans will pay to keep their kids from falling behind where their peers are. I'm currently reading Harry Crews' A Childhood: A Diary of a Place, which documents his life as a kid growing up in a sharecropping community in southeast Georgia during the depression. And the contrast between that life and the life of the intensive-parented upper-middle-class kids of today (discussed in the NYT article above) is striking.

    We try and fight the tendency toward "intensive" parenting where we can. But the fact of the matter is that it's just very difficult (exhausting, expensive) to raise kids in a way that prepares them for a well-adjusted and productive adulthood, when no one knows what the world will look like when they reach adulthood.

    suomalainen
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    Re: Hristo's FI Journal

    Post by suomalainen »

    Interesting article.
    While this kind of intensive parenting — constantly teaching and monitoring children — has been the norm for upper-middle-class parents since the 1990s...but social scientists say the relentlessness of modern-day parenting has a powerful motivation: economic anxiety. For the first time, it’s as likely as not that American children will be less prosperous than their parents. For parents, giving children the best start in life has come to mean doing everything they can to ensure that their children can climb to a higher class, or at least not fall out of the one they were born into.
    What struck me was this idea that upper-middle class people (here defined as top quintile in income) have economic anxiety of the sort where they don't want their kids to fall out of their class. If you flip the perspective in the way that @jacob does, if you're lifestyle is defined not by your income but rather by your spending, and you raise your kids in a lower-class lifestyle, in theory that downward-mobility-anxiety should be lessened, no?

    I often feel the tug of wanting to inflate my lifestyle ("I've earned it"), but I resist because I don't think my children have earned it. If they think that my lifestyle is the norm, and I'm living a fancy lifestyle, isn't the better solution to reduce my lifestyle than it is to do all these extra activities in the hope that it gives them a leg up to continue the fancy lifestyle?

    Jason

    Re: A glimpse into how you poorly manage a budget with a family

    Post by Jason »

    Hristo Botev wrote:
    Sun Jan 06, 2019 7:20 am
    Yep. If any of you out there in the ERE community is looking for a lucrative side hustle, there's a growth industry in "child-centered, expert-guided, emotionally absorbing, labor intensive and financially expensive" child rearing

    when no one knows what the world will look like when they reach adulthood.
    Welcome to Jason's Internet Trolling Empowerment Camp. Now, your rich, idiotic parents are throwing away good fucking money for you junior douchenozzles to learn what's its like when the parental controls come off, so STFU and start texting what you really feel about the little snot-nosed entitled asshole farting beside you. And make it good or you'll be crying like Michael Jordan after his dad got shot for the rest of the summer. Let's go, asshats. You're not going to learn staring at me like the dead fucking deer your drunk mother hit when racing back from banging your uncle.

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    Re: Hristo's FI Journal

    Post by jacob »

    This talk of the constant need to be productive and organized wrt child rearing reminds me of this:
    https://www.buzzfeednews.com/article/an ... -debt-work

    Supposedly, burnout is more prevalent in the Millennial generation compared to older ones. That doesn't mean that it doesn't exist in other generations. I've experienced various levels of burnout over the years and I'm wondering whether it's a result of having spent decades in a combination of competitiveness and organized use of time that begins to spill into all aspects of one's life similar to what kids go through today. That basically taking an activity that's internally motivated and imposing an external structure (schedules and measures) to increase productivity which substitutes the inherent motivation away and if done in excess eventually removes inherent motivation for ALL activities---even basic tasks---as this spills over into the rest of one's life.

    The result is that the mind with it's limited amount of decision and planning-energy starts sorting and ignoring all the high-effort/low-reward efforts. A result might be that nothing gets done for its own sake anymore. Fun is gone. It's all about striving and achieving and anything that doesn't satisfy one of the generic achievement metrics one has internalized instead, it won't be done.

    Also: http://earlyretirementextreme.com/produ ... -eggs.html

    Hristo Botev
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    Re: A glimpse into how you poorly manage a budget with a family

    Post by Hristo Botev »

    Jason wrote:
    Sun Jan 06, 2019 9:35 am
    What's the monthly charge? And do you offer a multiple kid discount?

    Hristo Botev
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    Re: Hristo's FI Journal

    Post by Hristo Botev »

    jacob wrote:
    Sun Jan 06, 2019 9:37 am
    DW and I were talking about the task thing this morning in response to one of the comments someone had left on the NYT article, about kids not having to entertain themselves anymore, and about parents being scared to let their kids be bored anymore. They've got every second scheduled with school, sports, tutors, other extra curriculars, homework; and any second they don't have scheduled they've got an ipad or whatever in front of their face. Interesting anecdote from the Harry Crews' memoir is that he got interested in writing because when he was a kid him and his neighbor would spend hours upon hours inventing epic stories based on the models in the Sears mail catalog, which was the only printed material in the house other than the Bible. Kids will find stimulation anywhere. Seems like kids need to have that sort of unstructured play time where they have to entertain themselves.
    Last edited by Hristo Botev on Thu Jan 24, 2019 9:06 am, edited 1 time in total.

    Hristo Botev
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    Re: Hristo's FI Journal

    Post by Hristo Botev »

    My third book of 2019 is Rod Dreher's 2006 book Crunchy Cons. I'm 3 chapters in at this point, and so far there are a whole lot of parallels with the ERE thing (e.g., don't drive when you can walk/bike, limit TV, avoid consumerism for consumerism's sake, etc.). From the book description: "Dreher introduces us to people who are pioneering a way back to the future by reclaiming what's best in conservatism--people who believe that being a truly committed conservative today means protecting the environment, standing against the depredations of big business, returning to traditional religion, and living out conservative godfather Russell Kirk's teaching that the family is the institution most necessary to preserve." It'd be nice if more "conservatives" were focused on actually preserving the "Permanent Things"--families, churches, local economies, the environment--through practicing and promoting on a policy level where appropriate green eating, liberal arts education and traditional (parochial/home-school) schooling, arts, sanctified religion, independent and locally-sourced consumerism, and non-automobile transportation options. Instead, just like 13 years ago when Dreher's book was published, conservatives today just seem to be focused on paving the way for the Amazons and Googles of the world to run roughshod over our democracy and our culture.

    Anyway, interesting read. And thanks to Dreher's unexceptional writing style and proclivity to repeat himself, it's a book that you could probably tear through in just a few hours.

    suomalainen
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    Re: Hristo's FI Journal

    Post by suomalainen »

    Hristo Botev wrote:
    Thu Jan 10, 2019 9:59 am
    Instead, just like 13 years ago when Dreher's book was published, conservatives today just seem to be focused on paving the way for the Amazons and Googles of the world to run roughshod over our democracy and our culture.
    Although this probably isn't fair, what IS a fair definition of what conservatives stand for these days? Other than lowering taxes and anti-abortion, which seems to have been pretty consistent for like 40+ years.

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