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Author: ChocoKitty Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 5069  
Subject: Kicked out of the FIRE club? Date: 11/17/2003 9:26 AM
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Well, I just did something that may just get me kicked out of the FIRE club.

I bought a new condo, my dream home, to be finished in about a year. And it's not cheap. But it's the place I want to retire in, and it's gives me something I haven't felt in many years -- a sense of home.

And I plan to live there alone or with a female roommate. After an eventful year with a fixer-upper house and living with my SO, I've realized that some things just aren't worth scrimping on. I'll still be saving, just not as aggressively as I once had. But having a mini-vacation every day on a lakefront, and being able to live life according to *my* terms and my own schedule again, is worth working for.

I just don't feel like sacrificing everything today for an uncertain tomorrow anymore. I'm already getting bitter, which may be a sign that I've put off the L in LBYM for too long.

At least I have a nice head start on the nest egg. You can't buy time back, and that applies whether you're planning on saving now or living now. I've done a lot of saving. Maybe it's time to do some living. And yes, I still plan to take advantage of as many frugal luxuries (e.g., free concerts) as I can. Maybe I can still stay in the LBYM/FIRE club?

CK
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Author: phantomdiver Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1340 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/17/2003 9:29 AM
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Nobody is kicking you out! Any club that kicked you out would get a nasty letter from me. :-)

I just don't feel like sacrificing everything today for an uncertain tomorrow anymore. I'm already getting bitter, which may be a sign that I've put off the L in LBYM for too long.

There you go. You have to do what's right for you, and the condo seems to be it. You go, girl!

phantomdiver

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Author: SloanT Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1342 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/17/2003 11:25 AM
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CK:At least I have a nice head start on the nest egg. You can't buy time back, and that applies whether you're planning on saving now or living now. I've done a lot of saving. Maybe it's time to do some living. And yes, I still plan to take advantage of as many frugal luxuries (e.g., free concerts) as I can. Maybe I can still stay in the LBYM/FIRE club?

I have a few thoughts. First, you're such a pleasure to read that we would never kick you out, so banish the thought.

About spending vs. saving. I was read in an old investment book, I believe it was by Gerald Loeb and published in the 30's, that people spend too much when they are young and save too much when they are old. I think this is one of those universal truths that is as applicable now as it was way back then. You have done a good job saving in your 20's and (I believe) early thirties. You have plenty of time to spend more. If I were you I wouldn't regret living the way you did, it helped build the foundation for your future. Just be sure that you are doing what makes you happy going forward.

Finally, your situation is why I am a big believe in setting a given savings percentage and spending anything beyond that, by force if necessary. For example, you could decide to save 20% of your pre-tax income and then make yourself spend the rest. How would you do that? Vacations, cars, house stuff, etc. If 20% isn't enough, set it for 25% or 35% or whatever. The point is to set a reasonable goal, live up to it, and spend the rest. That way, you won't feel guilty spending it because that money will just be sitting there waiting to be spent, and you will have your X% compounding away. Oh, and have fun doing it!

st


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Author: zsimpson Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1345 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/17/2003 1:35 PM
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Well, I just did something that may just get me kicked out of the FIRE club.

I bought a new condo, my dream home, to be finished in about a year. And it's not cheap. But it's the place I want to retire in, and it's gives me something I haven't felt in many years -- a sense of home.

And I plan to live there alone or with a female roommate. After an eventful year with a fixer-upper house and living with my SO, I've realized that some things just aren't worth scrimping on. I'll still be saving, just not as aggressively as I once had. But having a mini-vacation every day on a lakefront, and being able to live life according to *my* terms and my own schedule again, is worth working for.


If anything, I think you have the definition of FI/RE. What fun is retirement if you don't have a place you feel comfortable in, whether it be a townhouse or an RV.

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Author: FriedaChopsticks Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1346 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/17/2003 2:01 PM
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I bought a new condo, my dream home, to be finished in about a year. And it's not cheap. But it's the place I want to retire in, and it's gives me something I haven't felt in many years -- a sense of home.


No, this does not get you kicked out! This me inspiration, persionall. My condo fund so far involves a peanut jar with loose change and all my earnings from eBay, etc. (Ok, I might stretching the truth a _little_ bit, but not much.)

Give us the details, if you feel so inclined. :)

FC

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Author: workwayless Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1347 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/17/2003 2:14 PM
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CK reports,

Well, I just did something that may just get me kicked out of the FIRE club.

I bought a new condo, my dream home, to be finished in about a year. And it's not cheap. But it's the place I want to retire in, and it's gives me something I haven't felt in many years -- a sense of home.


There are many different type of members in the FIRE club. There's the "I hate work so much I'll do anything to retire ASAP" types like Intercst. There's the "I want to retire and still keep working" types like SeattlePioneer. And there's the "Yeah, I wanna FIRE someday, but I don't want to live like Scrooge to do it". All of the different member types are legit. However, it's important to recognize which type are you and then be true to your type.

When you look at some of the "pioneers" of FIRE such as the Terhorsts, Joe Dominguez, and Intercst, they tend to be heavily weighted with 'I hate work/retire ASAP" types. However, in reality, I think very people would choose to emulate them.

FWIW, I do happen to be one of those 'I hate work/retire ASAP' types. A few years ago, I faced a similiar situation as you did. I bought some land and had my dream home custom designed. The lot was in a prime location in a mountain preserve. However, before the building began, I backed off. I analyzed what owning the house would do to my FIRE dreams. Like you, I too considered getting a female roommate. Still in the end I decided that FIRE could be pushed back too far into the future if I built the house.

Years later, I am still happy with that decision largely because I stayed true to my type. I'm betting that you will have a similiar experience.




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Author: InLivingColor Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1349 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/17/2003 3:57 PM
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Ach! Such dramatics for one so young. (Good thing you're a writer, huh?)

You've been agonizing about this decision for so long. I'm glad you finally made it. Dunno how much this will extend your ER plans, but hey! You've already got your retirement home going. That ain't nuttin' to sneeze at, hon. Do you have any idea how many folks are pushing typical retirement age and have never even THOUGHT where they'd like to live the rest of their days?

Ya know what else? That sense of home? It's priceless. I promise.
ILC

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Author: cellarer One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1352 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/17/2003 7:49 PM
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"Maybe I can still stay in the LBYM/FIRE club?"

Out with you! You've gone and done all kinds of horrible things!!! ;)

Like diversify your wealth..
Like create a new lifestyle which will HELP you LLLL BBB YM...
Like realize that today's joys (free) help one get to one's future in a healthier way...

Definitely too good for the rest of us ! :) :)


Seriously, congratulations. ENJOY your home :)

grannydoc, knowing that FIRE isn't the only goal in life....

See http://boards.fool.com/Message.asp?mid=19493962

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Author: SeattlePioneer Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1357 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/18/2003 9:00 AM
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<<At least I have a nice head start on the nest egg. You can't buy time back, and that applies whether you're planning on saving now or living now. I've done a lot of saving. Maybe it's time to do some living. And yes, I still plan to take advantage of as many frugal luxuries (e.g., free concerts) as I can. Maybe I can still stay in the LBYM/FIRE club?

CK
>>


Heck, there is nothing wrong with buying luxuries.

My own standards for buying luxuries are three:

1. I have to be able to afford it

2. It has to be something I, personally, desire ---not stuff other people think I should have or to keep up with the Jones's.

3. I need to use it intensively enough to make it worthwhile.


It sounds as though your condo would meet those tests. But buying luxurious amounts of housing may well cost you in terms of net worth long term. As long as that is worthwhile to you though, I don't think anyone will kick you out of the LBYM club.




Seattle Pioneer

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Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1364 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/18/2003 10:34 AM
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Don't feel bad, CK, we did it too. Last year we finally cracked after years of frugality and killing ourselves to get ahead. We sold our small condo at an obscene profit and bought a good-sized house (big to me, not compared to the 4500sq ft monster going up across the street). To top it off, we bought a new car, too.

Sure, it slowed up our FIRE progress, but we really did not spend diddly for many years, and the nest egg is advanced enough that it could weather a little slower growth. The difference in quality of life is absolutely tremendous.

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Author: nmckay Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1366 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/18/2003 12:07 PM
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As long as your condo isn't in Houston, you'll be fine ;-)

I keep those LBYMers at arms distance. That rinsing out plastic bags stuff is depressing boardering on mental illness (not that I'm qualified to make such statements). DW and I know how much has to go into savings each month and we do our best to spend whatever's left. It's worked for over ten years.

nmckay
who's also buying a new condo

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Author: ChocoKitty Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1367 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/18/2003 12:10 PM
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LOL!! Nope, not Houston. You couldn't pay me enough to live there.

The nice thing -- I already have $3K instant equity due to appreciation. They opened the second (and final) phase of the condos last week, and they raised the price $3K. People waited overnight in line to buy in the new phase, and they're not as nice re: lake views. Gotta love high demand.

CK

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Author: phantomdiver Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1368 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/18/2003 12:43 PM
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That rinsing out plastic bags stuff is depressing boardering on mental illness (not that I'm qualified to make such statements).

Hey! I resemble those statements!

phantomdiver
frequently found rinsing out plastic bags on LBYM

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Author: chooey98 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1369 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/18/2003 2:59 PM
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The nice thing -- I already have $3K instant equity due to appreciation. They opened the second (and final) phase of the condos last week, and they raised the price $3K.

Well, there you go! Waterfront property is nearly always desireable, so your condo should increase in value over time.

And as long as you still are saving something for retirement, you can still be in the club...

Maybe this is your first step out of the fast lane????

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Author: fredinseoul Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1373 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/18/2003 7:13 PM
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The nice thing -- I already have $3K instant equity due to appreciation

I hate you!!! :)

Just joking. Actually, I am jealous. I bought an apartment last year August. My fiancee's sister bought a house just across the street about a month earlier. By the time she moved in, the house had appreciated $8,333 between the time she signed the contract and moved in. My apartment, on the other had, has not appreciated one dime, at least not according to the advertising in the local real estate offices.

fredinseoul


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Author: ChocoKitty Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1382 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/20/2003 2:11 PM
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I tell ya, though, it's still making me nervous. I can still back out of the deal (I have until next Friday) due to the local laws on condo buying here, and I still keep wondering whether I should do so, especially on days (like today) when my work colleagues and clients are driving me nuts.

It's like I'm being torn in two-directions, you know? But then I think, "where the heck else would I want to live? It's not like my workplace is near anywhere inexpensive, and keeping the house will only prolong the 'want to kill someone' feeling."

Grrrrr......makes me wish I were Paris Hilton or something.

CK

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Author: brewer12345 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1384 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/20/2003 4:29 PM
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If it helps, remember that there are always plenty of fish in the sea, should your current workplace become too much of a PITA.

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Author: WeeBeastie Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1393 of 5069
Subject: Re: Kicked out of the FIRE club? Date: 11/20/2003 7:50 PM
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I bought a new condo, my dream home, to be finished in about a year. And it's not cheap. But it's the place I want to retire in, and it's gives me something I haven't felt in many years -- a sense of home.

This is when it's worthwhile paying extra. You are already in a "frugal" fixer and not happy - so you KNOW having somewhere nice to live is really important to you.

Don't feel bad about the expense at all - it will be worth it.

Property is one thing I don't get as manic about in my LBYM. When we bought our house, we pretty much went against Foolish wisdom and bought a place pretty close to our approved mortgage limit. I have absolutely no regrets. Since then our salaries have almost doubled, the payments are easy, I'm squirrling significant amounts of money for FIRE, and I'm in a house that we'll stay in forever, barring job moves etc. I'm just not interested in "trading up", but I probably would have been if we'd bought a much smaller house or bought in a not-so-nice neighbourhood. The expenses of buying and selling are just not something I want to volunteer to pay.

You a made the right decision.

Now pack up your personal belongings and leave the FIRE Wanabees board immediately. ;P


FIREWannabeestie


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