My financial planning makes it possible for me to enjoy one of the great benefits of being wealthy without actually having to be rich. That benefit is something that cannot be measured in dollars: peace of mind. What I call the shrug-and-chuckle benefit of financial planning. And it is priceless. Here is what I mean. […]
Generally, I do not carry any debt. But that does not mean that I do not have borrowing capability. I made it a point to bring my debt installment payments down to zero before I retired. But that does not mean I did not borrow regularly before. Or that I would not borrow again. Because […]
I take a written shopping list on every buying trip. And those lists act as superb spending control tools. Here’s how I build and use those lists. […]
When something isn’t working right – or isn’t working at all – do I repair or replace it? My answer always is to try to repair first. If that works, I save money and time. If it doesn’t, I can start searching for a replacement without the stress of second guessing. Here’s what I mean. […]
I live a comfortable, frugality-without-sacrifice lifestyle for less than $14,000 a year. I have backstopped it with emergency reserves. And my passive income keeps growing my discretionary fund. But all of it could go to hell in a hand basket if some financial catastrophe struck me. And that’s where my five-sided insurance shield comes in. […]
Whenever anyone lets go of their job and its income in favor of retirement or financial independence, there has to be a worry. Will the cash flow from the pension or the investments keep coming? Will it last or will it run out? Will some financial catastrophe wreck everything and ruin retirement? I had […]
How do you determine how much you can afford to pay for a house? And, even more to the point, how do you figure how large a mortgage payment to take on? We found out that the way NOT to do it is to listen to what mortgage lenders tell you that you can afford. […]
For me at least, what makes a budget item a necessary or discretionary expense is whether I can accept living indefinitely without it and not regret it. At its most mundane, I would regret never eating steak — but I can (and do) live indefinitely without eating porterhouse or filet mignon. At the other end […]
I separate my retirement spending, practically — and even more importantly psychologically — into a baseline budget for basic living expenses and a discretionary fund for optional disbursements. My baseline budget covers what I have decided is the minimum lifestyle acceptable to me. The Discretionary Fund functions as a super flexible pot of money […]
How does one strike a balance between saving for retirement and spending now? Where does one draw the line? Is it as simple as following the traditional norm of saving 10% of one’s after-tax income – and then being off the hook to spend everything above that until it’s all gone? The answer is a […]
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