What I Spend

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Slevin
Posts: 626
Joined: Tue Sep 01, 2015 7:44 pm
Location: Sonoma County

Re: What I Spend

Post by Slevin »

I have one of the priority bikes with the internally geared hubs — pretty sweet, though I paid in the hundreds, not the thousands. It’s my in town bike + farmers market bike + groceries bike. Nothing magical about it — it’s just a bike, and it’s both less nice and nicer than my surly, but the belt drive CVT is pretty cool.

Any considerations for jump roping for the zone 2 cardio?

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

The entry level Priority is around $660 delivered these days. If I saw a used one locally for 300-400, I'd be interested.

When I buy something new, I primarily consider the cost of being first owner. I bet the $2k model sells used for 75% of new. So for that relatively small premium, I'd err towards the model that excites me most. If I liked it so much, that I kept it forever, the price is tolerable.

However - I haven't biked in a few years, gave away my last bike, and have a constrained discretionary budget. Buying used feels prudent. There's a good chance the biking doesn't stick and I need to sell.


I am trying to accumulate a couple hours of zone 2 cardio per week. I can't see myself making a significant dent with a jump rope.

I already have a $500 offer on a rower outstanding. So that's how my patience is going. I don't think the seller is going to bite.

This morning I went to the gym, solely to use an elliptical for 75 minutes. Making the drive for that boredom, is not mentally sustainable.


I'm having second thoughts on pursuing I-bonds. I'd be selling existing bond funds to buy. Those bond funds have priced in recent market concerns, including this week's expected interest rate bump of 0.5%. A down side of holding the funds instead of the bonds directly. If sentiment shifts on inflation, the fund prices could rebound, reducing the benefit of moving to I-bonds. Similarly, if the Fed gets inflation sorted, the I-bond premium might be short lived.

I'm debating how much I'd gain vs. the mental overhead of diversifying what's a minor percentage of net worth.

andy
Posts: 23
Joined: Sun Jan 23, 2022 9:56 am

Re: What I Spend

Post by andy »

There are a few articles and quick youtube videos about I bonds which may help you with that decision. There are also videos on bonds in general which are great. I think you will find this quick video helpful: https://www.youtube.com/watch?v=U3_fOGjEiy8&t=27s. To summarize, there is greater than an 85% chance that goverment bonds will return less than 2% over the next 10 years. Corporate bonds won't be much better.

I bonds are so much better than a bond fund. The market may have "priced in" the recent hike, but that's just the first of many hikes this year. Bond funds are almost guaranteed to lose money when interest rates go up. Most bond funds don't hold the bonds they own to maturity and even the few that do, will likely return close to nothing if not negative over the next year or two at least.

I bonds could be returning over 9% with this new 6 month cycle. They should be announcing pretty soon. That is guaranteed return with no loss of principal, unlike bond funds. Bond funds won't even come close to that for years if ever again. There are only two downsides to I bonds. 1) limited 10k per social security number, unless you get the paper version too for an extra 5k 2) you have to wait a year before you can withdraw your money. There is no better bond in the world at this point in time.

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

That's a good video, thanks. In doing more reading, I discovered my assumption that holding individual bonds would have been "safer" than my bond funds was incorrect. The lowered fund value is balanced by my reinvested dividends purchasing at a higher yield.

It looks like it's fairly common for people to pile back into the market, after the Fed announces the new interest rate. I'll wait for that this week, and then revisit the i-bond idea. Freeing up the cash takes me a bit. Since all my bond holdings are in my IRA, I have to exchange those for equities, while concurrently selling equities in my brokerage. It looks like there's no incentive to buy the I-bond until month end anyways.

I was concerned about the combination of capital gains and dividends messing up my health insurance income band. However, I see now it makes more sense to defer tax obligations until the I-bond is redeemed. When time does come to sell, I'll need to account for it in income planning, maybe taking a year with no health insurance cost sharing.

With the market downturn, capital gains on an equities sale is likely to be minimal.

andy
Posts: 23
Joined: Sun Jan 23, 2022 9:56 am

Re: What I Spend

Post by andy »

Yes, good point. There's really no rush to buy them now since you'd be guaranteed the new interest rate for the first 6 months of your purchase no matter when you buy in the new window (which goes to the end of October). I'll be slowly maxing out my wife's account as the year progresses. Doesn't matter if you buy in May or October, you still lock in that rate for the first 6 months of the bond. I've read that the new rate is estimated to be above 9.5%. Here's one site that thinks so: https://www.depositaccounts.com/blog/in ... ngs-bonds/

shaz
Posts: 420
Joined: Mon Aug 02, 2021 7:05 pm
Location: Colorado, US

Re: What I Spend

Post by shaz »

Why do you want that particular rower?

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

For the same reasons I drive a Honda, I suppose. Concept 2 is the industry standard. Reliable, cheap parts, broad user base, holds value, etc.

I'm specifically targeting a PM5 rowerg, because I think they were over-sold during the pandemic. When nothing else was available, Concept 2 was shipping. I might also take a good price on a model D with PM3 or PM4. I'd consider a great price on a model C, planning to replace the handle.

There's a model B floating around near me used. I bet I could get it home under $200. I don't want it.


I am finding the classified apps are a distraction. Watching for a deal feels like continuously gambling. Very addicting. I remember now, that's part of the reason I drifted away from buying used while working. Removing mental overhead was worth the retail premium.


Unrelated - the property tax bill arrived. My estimate of a $500 increase was entirely incorrect. They are down $400, due to less money going to schools. I vaguely recall voting against some referendum last year. Guess it failed. Maybe we'll see the inflation bump next year? Anyway, we're going to save the difference, assuming some other big annual bill ends up higher than expected.

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

Progress:

Booked a surgeon consult for month end. I think they play with my insurance, so the evaluation process will be slowed by pre-approvals. Not that I'm excited to rush it.

Booked my doctor to talk about pro-active testing early next month. I need to figure out my talking points still, but that was earliest available appointment, so I took it. Healthcare is slow.

My $500 offer on the rower definitely fell through. Put out a $100 offer on a Model C with a monitor that might not work. No response from the seller though. Still looking at bikes as well. Gonna stop by the bike shop tomorrow and talk to my Dad on Sunday.

Did my 45 minutes of zone 2 cardio on foot yesterday, with only minor toe pain today. This is opposed to a full foot and lower leg ache that makes walking uncomfortable, just two weeks ago.

Speed ran a load of laundry with no dryer earlier this week. It was not a big deal at all. Everything was dried by the following afternoon.

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

Bought a model D rower with PM5 and ~650k meters today. $550. About 40 minutes in the car each way. I offered an hour after it posted and picked up 2 hours later. The seller had about 10 offers in that time. I could probably sell today, for more than I paid.

I'm glad to have one that fits my budget. I can't help but think of the money saved as work. I had to learn about rowers, setup classified alerts, get a feel for the market, check postings, make failed offers, drop my plans for this morning, setup paypal on my phone, drive to pick it up, clean it, etc.

In this case, I saved about $500. While it's the current model, I do have a used unit. Factoring in the effort, and especially the mental overhead, I'm unsure if it was worth it.

The downsides are a list of "why social media is harmful to our mental health". The apps are very compelling. There's always something new. Waiting for a deal feels like constant gambling. The worst of people appears - scammers, unreliable buyers/sellers, ghosting.

I very intentionally exclude this sort of tech from my life. Welcoming it back in, to save a few hundred dollars, feels questionable.


Given the month's budgetary constraint, I found a way. I do still want a bike and may buy that used. The risk of buying stolen, along with bikes being less of a commodity (sizing / wear), leaves me on the fence. I could do without, or wait until new is affordable. A "made in America" Detroit bike ticks a lot of boxes for me. So does the low maintenance of a Priority bike.

Long term, I'm not sure if classifieds are part of my strategy. Maybe I can better manage my money or wants. I'd rather buy new, donate used. I like keeping something out of the landfill, but if I'm going to work, there must be better returns on my time.

MBBboy
Posts: 212
Joined: Sat Jan 01, 2022 12:11 pm

Re: What I Spend

Post by MBBboy »

I hear you. No amount of positive experiences I hear about will convince me to check out Facebook Marketplace. I got rid of FB back in 2010, and the potential for some savings buying something used are not a big enough incentive for me to dive back into that cesspool. Our local buy nothing group operates through FB, so we just won't be a part of it. Instead, I spend more energy working with friends and people at church. Anything else we've given away has gone to a local thrift store. Ironically, I might make more money with the tax deduction than I would make trying to sell anythig anyway

white belt
Posts: 1452
Joined: Sat May 21, 2011 12:15 am

Re: What I Spend

Post by white belt »

Buying and selling used is a skill. Just like with any other skill, there is a learning curve. It sounds like some of the friction is just due to initial time investment, but now that you understand the process anything you buy/sell in the future will be much easier. You can set up automatic alerts and tweak notifications to reduce mental overhead. I may go as far to say that buying/selling used is an essential ERE skill along the same lines as cooking and DIY repair. See Ego’s posts for an advanced version of this that he’s turned into an income stream.

I have had positive experiences buying things on eBay and FB marketplace, but there is a bit of legwork you’ll have to do yourself particularly with local goods. For big ticket items, usually the savings is well worth it (I’ve bought a car, furniture, cookware, etc). Keep in mind that it’s not just the initial savings on purchase cost, but the fact that a used item is already mostly depreciated. Depending he on the item, you can resell it for almost the same price down the line so your cost of ownership is effectively free. Your environmental impact is also minimized this way. Heck, even when buying smaller ticket items on Amazon, I still opt for used or open box whenever possible.

Edit: Also I get the negatives of Facebook, so I pretty much use it only for FB marketplace. That insulates me from many of the detrimental aspects of social media. It’s a place a go to buy/sell stuff (a marketplace perhaps?), so when I don’t have anything to buy/sell, I don’t go to it. In many places, it seems like FB marketplace has supplanted Craigslist as the go to for local used goods.
Last edited by white belt on Sat May 07, 2022 10:14 am, edited 1 time in total.

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

I agree on buying/selling used being an essential ERE skill. I'm definitely not running a pure ERE play. Where to take a softer approach is something I am still feeling out.


I am finding Facebook inventory has overlap with OfferUp, at least in my area. I thought there might be a vastly better marketplace, given the ease of participation. I haven't seen any superior deals. I got the rower via OfferUp. Maybe one could snipe a lazy seller, but there are more people watching Facebook. Supply meets demand.

With bikes, I am still checking both. I am leaning towards re-deleting Facebook, sticking with OfferUp. I already deleted Craigslist. My last time selling there, scammer noise was far too high. Everything on Craigslist was also cross-posted to OfferUp.

I like the ease of checking a seller on OfferUp. The dude with 3 $50 bikes, a $300 leaf blower he's not someone I want to buy from.

white belt
Posts: 1452
Joined: Sat May 21, 2011 12:15 am

Re: What I Spend

Post by white belt »

@Scott

I’ll have to see if OfferUp is active in my area. I’ve found that some of the sites are really geographic dependent. I’ve also found that different sites offer different types of goods (e.g. Craigslist is still the most useful for finding rooms to rent in my area).

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

I will not buy a bike this month. I removed all classified apps from my phone and deleted the Facebook account. Reasons:

1. I need to integrate the rower
2. Using the trail on foot is going well
3. The $190 I have left is a tight budget for bike, lock, helmet
4. While I like the idea of another conditioning option, I remain hesitant towards the overhead

Most importantly - scrolling classified apps is too compelling. I'm open to trying bikes at shops, but I have to stop looking online. It's impairing quality of life and bleeding into other digital misbehavior. Along those lines, I took email, web and Netflix back off my phone.


Should I later buy a bike, I have narrowed to two options:

1. A single speed. Steel frame, maybe aluminum. Preferably rim brakes. A flip flop hub would be bonus. A fixed gear bike appeals, though I've never ridden one. Fear might constrain where I go. The draw is low failure risk and simple maintenance.

2. A basic mountain or hybrid. Flat bars. Flat pedals. No shocks. Rim brakes, not disc. Steel frame, maybe aluminum. A Trek 800 series, multi-track, or maybe FX1. I can maintain a basic geared bike, even if I don't want to. The draw is availability and ease of use - hills, heart rate.

The "do I buy new?" question remains open. If so, it would be for nice to haves - belt drive, internally geared hub, made in the USA. Maybe a Detroit Cortello or Priority L-train. I don't think they are realistic wants on the used market, especially factoring in sizing.

I currently lean towards lightly used, primarily due to theft considerations. My sweet spot is probably $200-$400.

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

Turns out I should have started the bike inquiry with my Dad. Now that I've educated myself, I learned he's deep into the hobby.

He's got a single speed, a road bike and a mountain bike. Brooks saddles. An extra helmet. Bike tools up to a wheel truing stand. And he's 5 miles away.

So I'm gonna try his bikes, then hopefully figure out a way to ride with him. I can explore this at no cost, with minimal maintenance effort.

He recommended against a fixed gear bike with no hand brakes. He had one and sold it because riding felt way too dangerous. I am less skilled and more risk averse, so that's a strong argument against the fixie.

Western Red Cedar
Posts: 1205
Joined: Tue Sep 01, 2020 2:15 pm

Re: What I Spend

Post by Western Red Cedar »

An ERE victory on multiple fronts - Congratulations!

FWIW, I think you can buy used in the future and feel out the situation. I picked up a used bike off Craigslist and was worried about the potential of buying a stolen bike. It was pretty apparent within a few minutes whether this was an issue or not. A bike is one of the greatest things to own IMO.

shaz
Posts: 420
Joined: Mon Aug 02, 2021 7:05 pm
Location: Colorado, US

Re: What I Spend

Post by shaz »

Congrats on finding the rower you wanted at the right price.

I feel your pain when it comes to shopping on Facebook Marketplace. The upside is I am less inclined to buy anything when it is such a massive nuisance.

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

Sold the ring light for $50. Current retail is around $130, so not a great recovery of my purchase price. There are a lot of used ring lights floating around.

I did learn an important lesson about OfferUp. When I setup my account, I added a profile picture. Of a tree. A lot of accounts use an object, or even no picture at all. For privacy, obviously! The only inquiries I got were flaky.

It dawned on me the other day - the accounts with real pictures are primarily people who look like me. So, I decide to upload my profile picture. I look like a stereotypical IT guy, down to the beard. A dollar store Jonah Hill. I am very non-threatening.

The next day, my buyer messaged. A man named Joe, with his family in the profile pic. Joe looks just like me. Only who shows? Joe's wife, in her minivan, another female friend in tow. She's a makeup artist and uses Joe's identity on OfferUp transactions. Zero haggling. Doesn't even test the light.

Her most important (unstated) question - "Does this anonymous online transaction feel safe?".

Since we're dealing with qualitative criteria, conscious and unconscious biases enter into it. Maybe OfferUp has a selection bias, and the profile pics reflect the distribution of users. Or maybe - everyone who doesn't look like me, already understands the marketplace and adjusts accordingly.


I find myself torn between idealism and pragmatism here. If I want the best price on transactions, I need to optimize for the marketplace. Basic IT guy feels safe - so there I am. On the other hand, I dislike catering to people's bias. I want the sale and my seller reputation based upon objective criteria.

This is another scenario where FIRE removes the insulated boundaries of corporate life. There's no d&i initiative, no protected classes. A used marketplace gets messy. Part of me hates it, part of me can't help but see the arbitrage opportunity. Acknowledging it feels dirty. Ignoring it? Lucky me, I suppose.

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

My Dad's bikes didn't fit - the frames were too large. He is interested in riding together, if I get a bike.

I found myself feeling surprisingly unstable on his bikes. Enough that it gives pause around prioritizing the endeavor. I might do a couple hour bike rental first, to see how quickly that feeling fades. It could just be a sizing issue, since I used to ride confidently. I do have his old helmet now.


Integrating the rower is going well. Concept 2 hosts an online leader board for all their devices. There is an annual season, starting in May. So I made an account, linked my rower to my phone via Bluetooth and am tracking meters.

I posted a couple ranked workout scores. As one might expect, there is heavy selection for good rowers. I find myself in the bottom quartile for most events, sometimes I break into the second from bottom. It's fun, though it does tempt me out of Zone 2 training too often.

I found I can use a verification code to upload scores from the gym rower as well. If you log a million miles, you get a free t-shirt. I kinda want it.

In getting ahead of myself - I found a bunch of places in my area that rent kayaks, canoes, paddle boards, etc. A stand up paddle board yoga class. A local sculling club. At some point, it seems reasonable to take all this rowing outside the gym. I do need to pick a focus though.


Max strength is down about 5% due to the cardio work. I was feeling pretty annoyed about it. Then I looked at my log data, from using the trail for Zone 2 training on foot. Mid-April, covering 2 miles in the barefoot shoes took 40 minutes. This week - 4 miles took 60 minutes. Doubling the distance while increasing speed by 50% is great progress, especially for one month. My feet and lower legs are much stronger, enough that I keep accidentally doing Zone 3 work.


I paused the i-bonds idea. Our portfolio is down 13% since 1/1/2022. Accounting for inflation, one could argue purchasing power is down closer to 20%. While this is designed into the plan and we aren't hurting in any way, the drop bothers me. I don't think it's the right emotional base for changing investment allocations.


I did throw out a couple half-assed applications, for jobs I am probably over-qualified for. A local non-profit. A large company that is in walking distance. I dunno if that goes anywhere. I didn't turn on the LinkedIn flags, so this isn't a clear direction. More a casual browse of opportunity.

While I love the freedom of FIRE, I am not enjoying the dependency on assets I don't control. I also find myself increasingly annoyed with the work of a constrained budget. Part of me thinks it would be smart to hunker down somewhere, before the recession hits full swing. Maybe a chill job would be easier in aggregate. I could test some of my "personal growth" from the last 15 months.

It's also possible I'm temporarily mad due to the down turn, and when faced with the reality of a couple interviews, this feeling blows over.

Scott 2
Posts: 2824
Joined: Sun Feb 12, 2012 10:34 pm

Re: What I Spend

Post by Scott 2 »

May 2022 Total (Couple) - $2554 + $5132 (property taxes)
Taxes - $5132
Healthcare/Medical - $965
Exercise - $689
Groceries - $612
Home Maintenance - $278
Phone/Email - $201
Utilities - $167
Automotive - $50
Streaming - $20
Clothing/Shoes - $16
Entertainment - $3
Unplanned buffer - ($447)

Weird month. Property taxes were $5132 against an estimate of $6000. That difference will sit, in case other large recurring expenses are bigger than planned.

Spending was $2554 against an estimate of $4350. That reflects a lot of unspent discretionary money. Also some unusual inflows.
I sold a ring light for $50 on OfferUp and my wife got a $400 check from the Facebook lawsuit.

My wife's cell phone renewal came up. I got a rowing machine. Since we're both looking towards bigger purchases, there was very little optional spending.

Projecting medical expenses continues to be a problem. I saw a dentist and an oral surgeon this month, but I have zero bills. We're going to carry the budget allocation forward.


June 2022 Estimate - $5675 (Couple)
Since discretionary money has been accumulating, the June budget is much bigger than a typical month. I need to spend $700, my wife $1200. That's after allocating $100 for Tupperware, $200 for a ladder, $150 to start my wife at a second pool, etc.

I can afford a bike, but am unsure if I need one. Same with a laptop. There's another $200 of smaller quality of life ideas, but with the big rocks uncertain, I am hesitant to commit.

My wife did agree to drop the unplanned buffer for future month budgeting. It adds noise and confused forecasting. Our system isn't well designed to accommodate surplus. The intent is to spend the full annual budget, investing in quality of life while young. We are running behind.


Overall
Objectively, our quality of life is fantastic. Not working is the best.

Market fluctuations have caused me some financial stress. The plan includes this volatility, but it does not feel good. I do not like relying upon something I cannot control. I have casually watched the more active investing discussions here, but I am unconvinced it would add to my quality of life.

It is hard to ignore that I chose to hold bonds at a 0% federal reserve rate. But, I also held them all the way down to that 0% rate. I could make myself crazy second guessing what happens next. Watching the run up last year, while divested from the objectively over-valued US market, would have also been tremendously difficult. So far, I continue to hold.


On Work
The half-hearted job apps I submitted mid-month went nowhere. Outside of feeling upset by the market drop, my PMP is expiring in the fall. Both have me thinking more about how to participate in society. Living solely as a consumer doesn't seem like a sustainable long term strategy.

My skills are as a mid to senior level project manager. That is probably my highest paying option, especially at an insurance company. However, it's also clearly a poor fit for my quality of life. My autism is not well aligned to a role built around relationships. I am indifferent to most people. My EQ is entirely learned, with zero intuition. My executive function literally depends upon a phone app. Career success in PM was through force of will, and it stressed me out. Still, seeing the end date for my PMP on the calendar, causes me to mourn the loss of identity.

Towards the end of my career, I retooled into the DevOps space. My replacement's title is DevOps manager. I guess I'm mid-level there. Only, that work requires production support, being on call, odd hours, etc. It makes for poor quality of life. An organization with a dedicated DevOps team is doing it wrong, so problems are virtually certain. Lots of throwing over the fence - especially when the function is confused with SRE roles, more often than not. The pay might be comparable to PM work, but again, I don't want to live it.

Fitness and nutrition have been long standing hobbies of mine. However - drawing upon my experience working as a personal trainer - relationships are paramount. My charm isn't competitive. Realistically, neither is my build. This work also pays poorly and carries high germ exposure. Not a good fit in the Covid age, especially with an immune compromised spouse.


The area I excelled at when I was younger, but did not pursue, was programming. I coasted through my undergrad CS classes. Consistent A's, even in the grad level courses, with little effort. My math skills are strong, and I naturally want frameworks for everything. The people I gravitated to at work were the developers.

Unfortunately, because my skills are dated, the avenue requires retooling. There's a good chance if it took, I'd be starting with a 50% pay cut. Although, even medium term, that could flip. Part timing it as a good individual contributor would be much more feasible, too.

My friend suggested I try contributing to open source. Given that I'm hesitant to mix up my ACA insurance, at least while sorting my current medical stuff, it's a good zero cost idea. Maybe I will follow through.
Last edited by Scott 2 on Sat Jul 02, 2022 8:53 am, edited 1 time in total.

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