Thank you for all your responses and ideas. I am looking into some of them. I knew charity will be one of the first things to pop up in the discussion. I have conflicting views on standard charity organizations and I haven't made up my mind about it.
jacob wrote: ↑
Fri Jun 07, 2019 9:47 am
... My approach is to divert the surplus to other productive people rather than finding ways to waste it myself. In my case, I've started diverting it to Patreon. I primarily support people whose work would be hard to monetize under the current ad-based/affiliate/selling stuff-paradigm... because I empathize with these people ...
This idea here is something I will start doing. There are lot of people out there producing things I benefit from and they are not charging for it. Open-source software and free education comes to mind.
Fish wrote: ↑
Fri Jun 07, 2019 1:35 pm
As the marginal utility of saving diminishes, I’ve been:
- Increasing my inventory of consumables (e.g. non-perishable food, dress clothes for work) as opposed to minimizing the quantity purchased to limit carrying costs.
- Buying higher quality products, tools and parts.
- Occasionally buying convenience when able to fully appreciate its luxury.
- Tolerating small monetary losses resulting from “bad luck” instead of becoming agitated and fighting each one.
- Traveling to spend time with family and friends.
- Donating to local organizations I support.
"Increasing my inventory of consumables" is something to which I could allocate part of the money. Ideally I will like to buy all my future food, medicines, shoes, cars, gas, education, corndogs or toilet paper right now that I have the cash but I haven't seen the way to do it effectively. Futures contracts could be great if the were not a financial instrument based on trust on financial institutions. I am not prepper, but I have started looking a little bit more seriously into that way of stocking up. I started buying quality tools and durable stuff long ago.
There is one thing I am getting out of the surplus money. I don't care about money much lately. If I have to 'lose' some money for some reason, I don't double think it. Like you say, I don't fight it, I just keep going like nothing happened.
I am even considering to stop keeping track of income and expenses... but I like the graphs so much...
prognastat wrote: ↑
Fri Jun 07, 2019 9:16 am
Another option that might make your life better is if you live a decent distance from work use the extra money to buy a place much closer to work. I can tell you not having to spend time in traffic every day makes my days much better.
I live in a sweet spot between work, friends, family, etc... Moving is not something we are considering right now. Maybe in the future I can consider something out of the city, but not anytime soon and I am not sure it would be much more expensive.
Scott 2 wrote: ↑
Fri Jun 07, 2019 12:42 pm
I'm in a similar position. What I am trying to buy:
Time - grocery delivery, food delivery, housekeeper, Uber, tradesmen, product subscriptions, limiting comparison shopping, not bothering with coupons or sales, etc.
Saying no - this applies most strongly to my job. I focus on the good parts, tactfully decline things I don't want to do, ignore boring problems I might have previously jumped in the middle of.
The idea of buying time is something I will also try to apply. Grocery delivery of some the shopping we can do for a start. I will discuss it with DW to try to get more ideas.
The reason to switch jobs was precisely to be able to say no to things I am not interested in. Still, I do some of such tasks out of... I don't exactly know why. Yes, I have to remind myself to say no more often.
bigato wrote: ↑
Fri Jun 07, 2019 1:24 pm
I'm still a bit confused as to why you feel you *need* to spend more. For most cases this is quite simple like set up a will, donate to a cause, etc. But I think you have another point in there. Could you elaborate?
I don't think this captures everything, but this is my try:
It is the fact that money is doing nothing there, it is completely unproductive and I can not foresee any situation in which I could use it. I could quit and I wouldn't need it (that's why I don't want to invest it). You could think the lower the SWR or any other similar metric you like the safer you can feel in retirement. I think that I am at a point in which lowering my SWR has, as they have mentioned here, very marked diminishing returns for me (the 3% I mentioned was just order of magnitude, it is certainly lower than that). In fact, I think that if all this plan (i.e., ERE) fails, it needs to do hard and loud in a way that no SWR will save us. The way we have set up everything is resilient but it will fail in scenarios like super inflation, government asset takeover (gradual or not), war, etc. In those cases, no big portfolio will work. (BTW I don't like physical gold, I don't trust its value and won't buy it). What I want to say is that the risk inherent to investing this surplus money is not worth the return I can get from it.
Sclass wrote: ↑
Fri Jun 07, 2019 7:53 pm
Great topic. I’m currently talking to my father about his estate plan. He’s in his 80s. Terminally ill. And he hasn’t spent enough money yet (according to him).
He has lived frugally all his life and now accumulates money for the sake of accumulating money. He doesn’t need anymore cash. His income exceeds his expenses by 5x right now. When I pulled him aside in May and suggested we start getting things in order he said what he usually has said over the years “Wait, I think I’m going to start spending my money.” It has recently changed to, “wait, I’m going to spend some of it, but perhaps I’ve waited too long.”
I think FFJ mentioned recently that buying most things doesn’t give him the satisfaction it once did. I’m there. It’s really hard to find anything that adds more value. Yet I worry about a moment in the midnight hour when I realize I have a ton of unused wealth that I feel I need to spend while I’m wasting away in bed wheezing through an O2 mask on my face. And, all I can do is think about spending my money
I am living a quite parallel situation although probably not so imminent as yours. It is exactly what gave rise to all these doubts. In fact, it is with my parents with whom I discuss this situation the most. They have the same problem as me and I don't want to see myself there when I am 70. Some people will not believe it, but it is a quite complex problem.
Recalling the idea of the renaissance man... I am healthy, I am handy with tools (or so says DW), maybe investing to improve my social network is something I can deliberately start doing...
Sorry for the messy answer.