If You Could Retire In 10 Years Time, But Had To Live Like A Miser Would You Do It?

[Watermelon Man]

Looking at tonight's new TV show: "Things to do before you die" from the Getaway team - it got me thinking about LIFE in general...things I'd like to do in my life other than just invest in property & shares & build up this investment portfolio so that some time in the not-so-distant future I'd be able to retire & live off the income derived from my income-producing properties...So here's the question that's somewhat puzzling me...

Would you live like a miser for 10 years (& pour nearly every extra dollar, etc into investing) if you could retire at the end of that 10-year period??

Or...would you live really fantastic (go on 2-3 holidays each year, spend a bit more on yourself & others; basically have the money to do a lot more); but instead of 10 years it takes you 15-20 years to achieve retirement??

Now - Choose 1 or the other - there's nothing in between to choose from.

 

[JamesGG]

Hiya,

Easy decision for me, now. I wasn't so sure this time last year, but I've since taken the second option.

I know it's going to take me a little longer to get there, but damn, I'm 21. If I'm not spending much of my hard-earned on the fun stuff; cars, drink, holidays, and women (woman, if she's reading ), then I'm wasting a big part of my youth.

If I were thirty or forty and just starting, I may have a different response. But, I haven't given any thought to that scenario...

Cheers

James.

 

[Harris]

NO for me

I would rather take 5 extra years ...and live the life to the fullest enjoying little luxuries of life that I can afford than to be miserly and live like a pauper...

Harris

 

[The Y-man]

but instead of 10 years it takes you 15-20 years to achieve retirement??

That's actually not a huuuge difference, considering the one (not 2-3) holidays per year, house full of gadget, and party every 2nd week person seems to stretch their "retirement" out 40 years or so..... one wonders if the "retirement" at the end of the 10 year option would be significanlty different to the "retirement" at the end of the 20 year plan.....

Cheers,

The Y-man

 

[Watermelon Man]

If I were thirty or forty and just starting, I may have a different response. But, I haven't given any thought to that scenario...

I'm 30 now & looking ahead to the next 10-15 years. I control 3 properties now; having bought 2 IPs in the last 4 months; & was thinking if I could buy 1 IP each year for the next 5 years; hence 8 in total; doubles within the 10-year period; therefore at age 40 or so; sell 4, pay out all loans; left with around $1.8m net worth; & around $65,000 per year income.

Now I know this the above paragraph is a VERY ROUGH overall map of a suggested investment plan, but I don't know if I could "delay gratification" for 10 years to achieve the above; & live like a miser & thus missing out on doing or experiencing a lot of other exciting things. Hmmm...

 

[caz]

No,
I prefer to take a little longer and live my life now.
Who knows what can happen in ten years, We may not be well enough to enjoy our money, the world may change in ways we can't predict that means things we enjoy now may not be possible in 10 years.
We want a nice life now.

 

[BoatBoy]

We have been living frugaly for the last 15 years already but will retire in 2 years or so at 43.

Frugal to us was no holiday's at resort's, eating out at cheap chinese/vietnamese once every couple of month's, cheap car, crap clothes, home brew and living in a dump of a house.

But we had a very nice and fast sailing cat that we built and cruised which average Joe would pay $700/day to hire, that we owned outright and sold to give us a leg up into property.

That has now allowed us to build the 50 footer that we will retire on shortly and enough investment's to keep her running and allow us to live well.

We still eat out at cheap chinese/vietnamese once every couple of month's, cheap car, crap clothes, home brew and live in a dump of a house.


Dave

 

[sunshine]

No way Jose - life is far to short to be a miser.

I have known people (earning excellent money) who were counting every $ and wouldn't even fork out $2 for their kids to hand out Christmas Cards. Way too far in my books.

I buy mostly everything on special, but thats so I have more to spend dining out or to splash around on outings and holidays.

Sunshine

 

[Watermelon Man]

one wonders if the "retirement" at the end of the 10 year option would be significanlty different to the "retirement" at the end of the 20 year plan.....

Cheers,

The Y-man

One of the end goals for me would be to take 3-6 months off each year & travel the world, & then spend the remainder looking at my investments or expanding those investments, etc; but to achieve holidays for that length of time; I'm probably going to need around $35,000-$45,000+ to pay for the holiday; & that's obviously after tax; so really around $50,000-$60,000 before tax. Something to work towards

 

[BoatBoy]

One of the end goals for me would be to take 3-6 months off each year & travel the world, & then spend the remainder looking at my investments or expanding those investments, etc; but to achieve holidays for that length of time; I'm probably going to need around $35,000-$45,000+ to pay for the holiday; & that's obviously after tax; so really around $50,000-$60,000 before tax. Something to work towards

Of course you could live comfortably in another part of the world in a nice appartment with waterview's and a maid for the sort of money you will spend on a holiday.

Dave

 

[Watermelon Man]

We have been living frugaly for the last 15 years already but will retire in 2 years or so at 43.

Frugal to us was no holiday's at resort's, eating out at cheap chinese/vietnamese once every couple of month's, cheap car, crap clothes, home brew and living in a dump of a house.

But we had a very nice and fast sailing cat that we built and cruised which average Joe would pay $700/day to hire, that we owned outright and sold to give us a leg up into property.

That has now allowed us to build the 50 footer that we will retire on shortly and enough investment's to keep her running and allow us to live well.

We still eat out at cheap chinese/vietnamese once every couple of month's, cheap car, crap clothes, home brew and live in a dump of a house.


Dave

Hi Dave,

Many thanks for sharing. Could I ask without wanting to offend you; but were you frugal 15 years or so ago; & thus got into property investing & your lifestyle didn't really alter; OR did you make a conscious decision to live frugally & give up a lot of things in order to achieve your property investing &/or retirement desires & goals.

 

[alexlee]

I think it's a mistake to think only along the extremes. You don't have to live like a miser every day. Nor, even for the very rich, can you just keep spending without restraint.

Normally, when I'm working, I live cheap. I eat at home, I barely buy clothes or furniture. On the other hand, every 2 years I take 3+ months off to travel or just take a break.

Think about a balance. And the balance is whatever you decide.
Alex

 

[hobo-jo]

I am 1 year into that 10 year period that you speak of

Most people would call me stingy, but I am just selective about what I buy/do. I don't waste my money on booze or ciggies, though I have the odd drink here and there. I don't have the latest 50" HD TV and PS3, but I do have a dreamcast here that gets the odd thrashing. I don't drive a car, only own and ride a motorbike which certainly keeps costs down. I bring my own lunch to work and use the facilities at work to heat up/cook my meals as opposed to having takeaway. I don't buy things on credit, I pay cash where I can and haggle (or ask for cash discount) where appropriate.

I don't feel that I'm missing out on anything, I don't have the need to flash my cash so to speak like most of my generation do.

I would like to travel though, went for my first o/s trip this year with my partner. Probably look to travel o/s again in perhaps early 2009.

 

[The Y-man]

One of the end goals for me would be to take 3-6 months off each year & travel the world, & then spend the remainder looking at my investments or expanding those investments, etc; but to achieve holidays for that length of time; I'm probably going to need around $35,000-$45,000+ to pay for the holiday; & that's obviously after tax; so really around $50,000-$60,000 before tax. Something to work towards

One serious side-effect I discovered of buying a ripper, resort-like ppor (complete with cleaner, gardener etc): you don't enjoy holidays as much You kind of go away and come back feeling "There is no place like home".

If you intend to travel once wealthy, it may be an idea to stay in an understated home.....

On the topic of eating out - we rarely do it - unless we are away for "business". Not so much because we are tighta... er... misers, but because:
1. my wife's cooking tastes better than most restaurants
2. we know what goes into it - we buy the raw ingredients, if it isn't grown in our back yard

Cheers,

The Y-man

 

[BoatBoy]

Hi Dave,

Many thanks for sharing. Could I ask without wanting to offend you; but were you frugal 15 years or so ago; & thus got into property investing & your lifestyle didn't really alter; OR did you make a conscious decision to live frugally & give up a lot of things in order to achieve your property investing &/or retirement desires & goals.

I actually lost my job as a sales rep about a week before we launched our last boat. ( something to do with building a boat during work time)

Best thing that ever happened 'cause we had to live on Bloss'es income, and eventualy give up our Kangaroo pt unit [just broke even], with zero dollars an $8000 car loan and a mid range Public servant's pay packet.

I then got to spend many year's sailing around, most week's 5 day's or more and with Bloss'es job she would travel a bit, so if she was going to Yeppoon for example I would sail up and meet her and we'd have a holiday out the reef.

I was basicly her Boat Boy

I was ruined with this lifestyle and could'nt go back to work, so we lived cheap which forced us to come up with other way's of getting ahead as both Bloss and I love eating fresh fish and cray's in exotic location's to much to want to actually work for a living.

I am incredibly lucky to have such an understanding and supportive partner.

Bloss also decided when she was 12 years old that she did'nt want children, so that helped a lot.

Hope this fill's you in a bit

Dave

 

[want2bewealthy]

Put it this way,
in the old days, some people used to work 7 days a week, some of them not getting to even see the sun most of the time down mineshafts n things, they would do this for about 50 years and with backs and joints aching day and night, they would then hopefully retire [provided the poisons and dust, arthritis hadnt killed or crippled them and live out the rest of their life still quite poor and in pain.

We can work hard for 10 years, getting time off on weekends, driving our cars around, going to the beach and hanging out with friends and family, and still get to be rich and retire very early, its really not that tough. what is tough is your friends who are non investors working until theyre 65 and then retiring with nothing to show and no money to do what they want until they die.

thats my take on it, work hard now and stay disciplined, then reap huge rewards when the rest of them are working hard wondering how theyre going to pay off that credit card.

The wealthy find a way to make their money work hard for them, others work hard for their money.

 

[Watermelon Man]

Bloss and I love eating fresh fish and cray's in exotic location's to much to want to actually work for a living.

Hope this fill's you in a bit

Dave

Sounds like a great life to me - eating fresh fish & crays in exotic locations!!! Many thanks for sharing!

 

[nomadic]

can't remember where i found this but thought it was appropriate:


The American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.

The Mexican replied, only a little while.

The American then asked why didn't he stay out longer and catch more fish?

The Mexican said he had enough to support his family's immediate needs.

The American then asked, "but what do you do with the rest of your time?"

The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."

The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise."

The Mexican fisherman asked, "But, how long will this all take?"

To which the American replied, "15-20 years."

"But what then?"

The American laughed and said that's the best part.

"When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions."

"Millions.. Then what?"

The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."

cheers

 

[The Y-man]

Most people would call me stingy....

I'm sorry to say.... you don't qualify. Let's take a look at the following:

I bring my own lunch to work and use the facilities at work to heat up/cook my meals as opposed to having takeaway.......
.

Yes, but you do not do this for 3 meals, and also take a shower there.

A gold class stingy will also ensure you use the office toilet more than at home.

A platinum class stingy will set up a caravan in the workplace car park with a power lead and water hose running to the office (Less distance to travel, 24 hour security)

I don't buy things on credit.............

A true stingy will buy things on credit card, collect points and pay within the interest free period.... of course on a fee free credit card.

.......I would like to travel though, went for my first o/s trip this year with my partner. Probably look to travel o/s again in perhaps early 2009.

As a stingy person, your first search will be "which tax deductible seminar or AGM will be held in a city I would like to visit".......

Cheers,

The Y-man

 

[Watermelon Man]

can't remember where i found this but thought it was appropriate:


The American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.

The Mexican replied, only a little while.

The American then asked why didn't he stay out longer and catch more fish?

The Mexican said he had enough to support his family's immediate needs.

The American then asked, "but what do you do with the rest of your time?"

The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."

The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing and with the proceeds, buy a bigger boat with the proceeds from the bigger boat you could buy several boats, eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor, eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then LA and eventually NYC where you will run your expanding enterprise."

The Mexican fisherman asked, "But, how long will this all take?"

To which the American replied, "15-20 years."

"But what then?"

The American laughed and said that's the best part.

"When the time is right you would announce an IPO and sell your company stock to the public and become very rich, you would make millions."

"Millions.. Then what?"

The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."

cheers

I LOVE IT!

Thanks for sharing. Hmmm...Yeah that really does sum up a lot of things. I think I might print that story out. It's actually the feeling I'd had recently after my finance got approved on my 2nd IP - On one hand I was feeling on top of the world having achieved so much in just 10 months; but on the other thinking...now I've got all this debt (admittedly good debt) & having to pay for the shortfalls in the negative gearing costs; & then thinking if I keep buying more properties & pouring every dollar I've got into property investing; what sort of life (at THAT PRESENT TIME) am I going to have!!!