wolf's journal

Where are you and where are you going?
Posts: 1090
Joined: Fri Jan 06, 2017 5:09 pm
Location: Germany

Re: wolf's journal

Post by wolf »

Thank you c_L, very much appreciated.
Yes, I would say so, that mostly I "settled into a calm consistency to maintain this low spending output" (well said c_L)

In the last few months I bought some new computer games and movies/tv series. I were always patient and bought them when they were offered for >50% less off the official price. By the way, I were surprised that entertainment stuff became so cheap. I compared the prices from today with prices 20 years ago (when I also bought some movies / tv series on DVD). Entertainment stuff has become so cheap. You basically get better quality movies / tv series / computer games for the same amount of money, you would have to pay for it 20 years ago. Inflation practically didn't happen on such entertainment stuff.

In terms of spending I don't try many new things anymore. Buying used/on sale/in bulk, repair, find creative ways, DIY, wait, avoid, optimize, question... and other spending optimizing tactics are so normal to me nowadays, that I don't even think of it anymore.

One challenge though is, that (as strange as it sounds) my TTM spending is increasing slightly during the last 24 months. My spending a year ago was even lower and since then it has been rising. This has to do that I don't visit my family on weekends that often anymore. They moved. The challenge is of course not monetary based, because I'm still very ok with the level of it. The challenge is more psychological based. Since starting ERE back in 2016 I only experienced decreasing expenses. That trend changed during 2019. Since then I "must" experience increasing expenses. Increasing spending is something I "naturally" try to avoid, but it happens. And I get proof of it every single month when I do my monthly financial controlling. I know it's no big deal at all, but still a new experience / challenge for me. Therefore I try to aim to stabilize my TTM expenses in the upcoming months. And I will succeed, if nothing unexpected occurs.

In other news (c_L and 2B1S) I found a way to "make peace" with investing. I didn't forget that you guys motivated me back some months ago. I acknowledged that I had to implement a investment strategy, that works for me. And since the return of dividend investing and real estate investing was not too good, as I did it, I chose to accept it. Since July I continued to invest monthly (aka DCA) some money into equities. With buying monthly, I will slowly reduce my cash buffer over the next 24 months. I don't want to invest a lump sum at the moment, so I chose DCA. I always found singvestor's monthly investing good, who also invest monthly. So I'll stick to a investment strategy I know I can handle. On the other side I have to accept average returns. But better I get average returns than doing investment with lower than average (or zero) returns.

Posts: 1995
Joined: Sun Mar 20, 2016 6:05 am

Re: wolf's journal

Post by classical_Liberal »

Thanks for the reply!

I think DCA'ing into anything is a good idea at the moment. Tangential side note. The fact you're at a low 2% Withdrawal rate and there are no relatively "safe" options yielding that real return should be a bit of a red flag for asset prices. Still, you have to earn something, so there's little choice but to invest. I'm still at uncomfortably high levels of cash given it's low yield, but I have about 2/3 invested, because I need to protect purchasing power.

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