Comments on: Stuck in a Savings Groove http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: JMK http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-40178 JMK Tue, 16 Feb 2010 01:51:35 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-40178 I also find it reeealy hard to loosen up the purse strings after living in frugal mode for many years. Most of the time it's not an issue because the things others would splurge on just aren't interesting to us (new vehicles, eating out, current electronics, trendy wardrobes). The one indulgance we allow on our journey to retiring at 55 is that we travel now while we are healthy and our kids are still at home to join us. Yes we could retire a few years earlier if we waited until we retired to do the travelling, but we've consciously decided to start now rather than assuming we'll be up to it then. If we are healthy well into our retirement, great, if not then we didn't put off seeing the world while we had the chance. Before spending on anything not absolutely necessary I invariably convert it to a travel equivalent and decide which I'd value more. Nice dinner out vs gondola ride in Venice; new DVD vs admission to the Louvre in Paris... It's never any contest. Travel always wins. I also find it reeealy hard to loosen up the purse strings after living in frugal mode for many years. Most of the time it’s not an issue because the things others would splurge on just aren’t interesting to us (new vehicles, eating out, current electronics, trendy wardrobes). The one indulgance we allow on our journey to retiring at 55 is that we travel now while we are healthy and our kids are still at home to join us. Yes we could retire a few years earlier if we waited until we retired to do the travelling, but we’ve consciously decided to start now rather than assuming we’ll be up to it then. If we are healthy well into our retirement, great, if not then we didn’t put off seeing the world while we had the chance.

Before spending on anything not absolutely necessary I invariably convert it to a travel equivalent and decide which I’d value more. Nice dinner out vs gondola ride in Venice; new DVD vs admission to the Louvre in Paris… It’s never any contest. Travel always wins.

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-39838 Canadian Dream Wed, 10 Feb 2010 11:49:58 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-39838 Hazy, Actually good point, I would have a better awareness that most people. I don't track my spending THAT closely to see it right away, but I would notice a slow down in net worth over a longer period. Thanks for the external point of view. I'm likely worrying about something a bit too minor here. Tim Hazy,

Actually good point, I would have a better awareness that most people. I don’t track my spending THAT closely to see it right away, but I would notice a slow down in net worth over a longer period.

Thanks for the external point of view. I’m likely worrying about something a bit too minor here.

Tim

]]> By: Hazy http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-39823 Hazy Wed, 10 Feb 2010 04:58:49 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-39823 You calculate your net worth every 2 months and write about finance every day. With that sort of awareness,I fail to understand how lifestyle inflation could get to be a problem...you would see coming a mile away and nip it in the bud. I see it happening with people who do not keep track of their finances...but you? You calculate your net worth every 2 months and write about finance every day.
With that sort of awareness,I fail to understand how lifestyle inflation could get to be a problem…you would see coming a mile away and nip it in the bud.
I see it happening with people who do not keep track of their finances…but you?

]]> By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-39791 Canadian Dream Tue, 09 Feb 2010 12:01:27 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-39791 @Susan, Actually I have been considering that, but I haven't decided on how much and where yet. @Jerry, Thanks for the typo catch. @Mama Zen, Actually not a bad idea. Make a list and then go down it as money allows. I'm not sure if it's really guilt when spending, but rather a fear of not wanting to fall into a meaningless spending trap. Thanks everyone, Tim @Susan,

Actually I have been considering that, but I haven’t decided on how much and where yet.

@Jerry,

Thanks for the typo catch.

@Mama Zen,

Actually not a bad idea. Make a list and then go down it as money allows.

I’m not sure if it’s really guilt when spending, but rather a fear of not wanting to fall into a meaningless spending trap.

Thanks everyone,
Tim

]]> By: Mama Zen http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-39762 Mama Zen Mon, 08 Feb 2010 21:00:59 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-39762 For now I am totally in saving mode and frugal living as much as I can (and trying to find ways to improve it almost everyday!). But if you live comfortably with your actual income, why not making sort of a wish list with your wife, like traveling to a particular country, your Blue Ray DVD player, etc... and when you get your salary increase indulge according to your list? Maybe this way you will feel less guilty when you spend? Because when I read your post, I feel that you have this guilty feeling like «this money could have been more wisely spent» Wise spending is a very «elastic» concept ;-) Good luck with these decisions! For now I am totally in saving mode and frugal living as much as I can (and trying to find ways to improve it almost everyday!).

But if you live comfortably with your actual income, why not making sort of a wish list with your wife, like traveling to a particular country, your Blue Ray DVD player, etc… and when you get your salary increase indulge according to your list?

Maybe this way you will feel less guilty when you spend? Because when I read your post, I feel that you have this guilty feeling like «this money could have been more wisely spent»

Wise spending is a very «elastic» concept ;-)

Good luck with these decisions!

]]> By: Financial Student http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-39759 Financial Student Mon, 08 Feb 2010 19:18:12 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-39759 I'm in a bit of a saving rut out of necessity now. Both my wife and I are in school, but she finishes in May. There are a few areas where it feels like we're starving ourselves, but understand that we need to. Obviously when the time comes that she's working we'll loosen the belt a little bit in these areas. We'll still be doubling the mortgage payment, maxing out the RRSPs and putting 10% towards debt repayment. After that it's just a matter of dividing up the wants. As income grows, the RRSP contributions grow, the 10% repayment grows and the spending grows. I think it's a balanced solution. I think as long as you live within that budget you won't get carried away with needing "more stuff". I’m in a bit of a saving rut out of necessity now. Both my wife and I are in school, but she finishes in May. There are a few areas where it feels like we’re starving ourselves, but understand that we need to.

Obviously when the time comes that she’s working we’ll loosen the belt a little bit in these areas. We’ll still be doubling the mortgage payment, maxing out the RRSPs and putting 10% towards debt repayment. After that it’s just a matter of dividing up the wants.

As income grows, the RRSP contributions grow, the 10% repayment grows and the spending grows. I think it’s a balanced solution. I think as long as you live within that budget you won’t get carried away with needing “more stuff”.

]]> By: Jerry Hung http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-39750 Jerry Hung Mon, 08 Feb 2010 17:09:57 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-39750 Just pointing out a typo of EFT (should've been ETF I assume) additional $3000/month towards mortgage is amazing, kudos to you, that takes dedication indeed (if it's from your combined salary income) Just pointing out a typo of EFT (should’ve been ETF I assume)

additional $3000/month towards mortgage is amazing, kudos to you, that takes dedication indeed (if it’s from your combined salary income)

]]> By: Susan http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-39748 Susan Mon, 08 Feb 2010 16:17:01 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-39748 Have you ever thought of using a specific bit of extra as "donation money"? Find something that matters to you and donate to it's charity. No, you don't make more money out of it but you do get a constant warm fuzzy feeling AND most donated money counts as a tax deduction! One thought I had when reading your post - if you are doing well enough to sock away almost $3000 per month toward paying off your mortgage, why not take some of your new extra income and donate toward someone who is clearly trying but getting foreclosed on or something - or to some fund (if there is any) which helps people having trouble paying their housing payments - or for that matter, to a shelter for the homeless! Just a few thoughts. Have you ever thought of using a specific bit of extra as “donation money”? Find something that matters to you and donate to it’s charity. No, you don’t make more money out of it but you do get a constant warm fuzzy feeling AND most donated money counts as a tax deduction!

One thought I had when reading your post – if you are doing well enough to sock away almost $3000 per month toward paying off your mortgage, why not take some of your new extra income and donate toward someone who is clearly trying but getting foreclosed on or something – or to some fund (if there is any) which helps people having trouble paying their housing payments – or for that matter, to a shelter for the homeless! Just a few thoughts.

]]> By: jacqjolie http://blog.canadian-dream-free-at-45.com/2010/02/08/stuck-in-a-savings-groove/comment-page-1/#comment-39744 jacqjolie Mon, 08 Feb 2010 15:33:33 +0000 http://blog.canadian-dream-free-at-45.com/?p=1368#comment-39744 Oh, I know that groove (aka rut at times!) well. I'm trying to budget IN fun activities (has to be activities, not books or similar) in the amount of $300/month. I couldn't make the goal in January as work got in the way, but will persevere. :-) A ski trip in February will more than make up for the shortfall. Oh, I know that groove (aka rut at times!) well. I’m trying to budget IN fun activities (has to be activities, not books or similar) in the amount of $300/month. I couldn’t make the goal in January as work got in the way, but will persevere. :-) A ski trip in February will more than make up for the shortfall.

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