Coast Fire and balancing saving

[LivingAlmostLarge]

Ceejay writes a lot about NW and progressing to coast fire. And just using a really cool calculator about coast fire. https://walletburst.com/tools/coast-fire-calc/. It's something I've been contemplating a lot lately. Mostly because we are stuck. 4 years ago we were cruising along to a very easy fire. We took a detour and the path to FIRE or retirement in general is a bit murky for us. YMMV. And we start to coast fire. I didn't have a word for it, but we just were forced into the situation because we chose to take it. But we were basically coasting. We had no direct plan or budget for saving.

I came here and you guys were very awesome by the way. For the first time in our adult lives we were not maxing out our savings, we weren't saving like 50%, we were forced to ease up on the pedal. It just happened. We didn't have a 401k it seemed, we only had 2 IRA and 2 ESA. We could save more but we couldn't cut our lifestyle that drastically to saving 50% because we wouldn't be able to pay our bills literally. We were not making enough to save at the same rate. It really stressed me out. But the board said forget it. I had saved responsibly for 15+ years. We only had our mortgage. We had set aside close to enough for the kids college. We were I think I calculated at coast fire number with IRAs annually. We could do it. But I had to wrap my head around that mindset. That it was okay to save the minimum and just let it ride.

Now 4 years later, we have a chance to save more again, but during these four years we had instead the opportunity to both have 401ks and we took it. So without trying we just ramped up the savings $45k/year into 401ks, 2 iras, and 2 esa and some into 529. And i've been comfortable because we were back above 30%. But now we have a chance to save more.

And it's interesting because I'm back here unsure if I want too now. I've kinda gotten used to the new me. I sort of like the relaxing feeling I have enough where I spend money and don't worry about it. Where I know we are doing okay saving the most into tax deferred accounts and I set aside sink/slush funds, and we enjoy the rest. I naturally save a bit because that's how we live, but I have a chance again to be like let's redirect $1k/month to savings.

Currently i'm about to spend $40k this month on stuff (New roof and 2 braces). And what do you know? DH got a $45k bonus. It's like magic. You are responsible with money and money appears. Good steward and it will be provided. But seriously I was just going to tap into our savings and not worry about it. Instead I had this miraculously expensive month just get covered. I mean I should save it, but does it really matter if i save it to pull it out monthly?

I guess the interesting question is I am trying to figure out what to do with DH's raise. Are we going to stick to the budget and save more? Or do we just see how it goes spendingwise? Do I want more? Yes and no. I waver between should we rent a bigger house. I am pondering if I want another car? Do I finally want a newer car for me? I am done with the minivan, but we'll keep it and maybe I get a better car? I don't know.

I like our life a lot. There is very little I would change. The extra money will help with all the extra kid expenses that are cropping up. All these camps and activities that cost so much more they are participating in now that the kiddos are older. Traveling to see colleges. Just little things that add up.

I'm not sure I can stop saving, but I do feel I crossed over 4 years ago the line of worrying about my spending. The question now is do I continue? This is likely a chance for us to be more measured and enjoy life. We are enjoying life. We go away now for the weekend and I don't sweat the cost. I feel okay booking the dog in boarding. I feel okay buying groceries I want to eat and not only looking at sales. I buy more organic. I buy clothes for the kids more freely than just goodwill or the thrift shop. I still do but now i'm like we can buy shoes at target or a regular store and not goodwill. It's too time consuming than looking for deals.

How did you cross over? Or did you never? How do you balance your spending?

[Tabs]

Just wanted to say congrats and am happy for you that things are going well, despite a monthly expenses that would have panicked most average households.

Also, just for fun, I ran my numbers through your link, and it confirms what I've already been doing since last year, which is coast-firing.... I still feel the need to keep saving more, but it's nice to get that confirmation though.

[ua_guy]

OP, sounds like you've hit a great stride.

From my own journey, I can't ever recommend to ever stop saving. Always save money, that's one of my core principles. Even if you're in a spending and enjoyment phase, still save some!

You've hit a point where your financial questions transition from what "should" you do, and what do you "need" to do, to, what do you want to do?

If you want a different car or a bigger house, as long as you aren't compromising your underlying financial goals and trajectory, why not? I think that goes for everything. And it's possible to maintain sensibilities...An increase in income doesn't require an increase in lifestyle or expenses across the board, but it may enable you to do more things you want to do and enjoy.

[kork13]

I love this post of yours, LAL. I remember discussing that situation/decision a while back & your concerns ... But also very glad that you guys went for it in spite of the risks & uncertainty. I think what really makes the difference is intentionality. I'm pretty sure that you can make almost any situation work if you're careful & deliberate about how you approach the problem & everything that follows. That's definitely been my experience.

I've never heard of "coast FIRE", but it makes sense. We're definitely past that line ... actually just about past the line for straight-up FIRE. I think, as you highlight, that the tough part is letting go and actually starting to coast. Admittedly, I'm still not really coasting, even though I know we could. I'm still mostly in the bargain-hunter mindset. The only caveat is that when I can logically rationalize spending more than the minimum, or covering high dollar expenses, I can do that pretty easily. I guess my thought process is that if there's a good reason to spend money, do it. I just don't want to be mindlessly frivolous or wasteful with our money either. So that's why I still pay attention to unit cost while shopping, or seek out the best value when I'm looking at those high dollar purchases.

[kork13]

It feels odd to say this in the same breath as my last post about the weird market behavior lately (as well as re-reading my post above from 2 months ago) ... But I've kinda started to just feel bored with our finances. What do I do with extra/"found" money? For example: I'm about to receive a per diem/related reimbursement for a recent work trip, ~$1800, which has otherwise already been covered through normal cash flow.

Meanwhile, our non-EF savings account is back to "pretty healthy" ($20k, about as much as I want to keep sitting idle); retirement accounts all getting maxed; kids' 529s/UTMAs growing sizeably; and our taxable investments otherwise continue getting money plowed into them (~$3k/mo).

Without selling alot of mutual funds, I don't have enough readily on hand to leverage it toward something big (like another real estate syndication deal or similar -- would require $50k-$250k) .... And sure, I can always just throw extra cash toward the investments, or over into savings ... But it kinda feels like it's all just meaningless numbers at this point, treading water & staying afloat for the simple reason that there's nothing else to do.

Maybe it's a factor of (1) being very busy with work & family stuff; and (2) being in a generally pretty good place financially, so I don't have to think/worry about it as much.

I guess it's just an odd feeling, not really caring about extra cash as it flows in, even though intellectually I know that this is serious money floating around. But most of our financial goals are either already met, or are on pace to be met by simply sitting back & letting it ride. Recognizing that this was my general mindset right now brought the idea of "Coast FIRE" back to my mind ... is this what it feels like? I'm not sure I like it... I'd rather feel actively engaged....

[disneysteve]

I've kinda started to just feel bored with our finances.

I know that feeling well. It is a sign that you have truly won the game. When you reach the point where you no longer have to concern yourself with where every dollar is going and don't have to pick and choose investments or mess with stuff more than a couple of times a year, you've achieved the goal.

At this point, the only thing I regularly do with our portfolio is withdraw $5,000 once a month or so to cover our living expenses. Every 3 months maybe when a CD/Treasury bill matures I reinvest it. And in November or early December, I take the RMDs from my inherited IRAs. That's about it. Everything else just cruises along as is. Boring for sure. Part of me misses being actively involved in managing it all but it's also nice to not have to concern myself with it anymore.

[Fishindude77]

Currently i'm about to spend $40k this month on stuff (New roof and 2 braces). And what do you know? DH got a $45k bonus. It's like magic. You are responsible with money and money appears. Good steward and it will be provided.

This is awesome and there is a lot of truth to this.
Old guy I used to do a lot of work for always said ...... Take care of your pennies and the dollars will take care of themselves.

[LivingAlmostLarge]

I love this post of yours, LAL. I remember discussing that situation/decision a while back & your concerns ... But also very glad that you guys went for it in spite of the risks & uncertainty. I think what really makes the difference is intentionality. I'm pretty sure that you can make almost any situation work if you're careful & deliberate about how you approach the problem & everything that follows. That's definitely been my experience.

I've never heard of "coast FIRE", but it makes sense. We're definitely past that line ... actually just about past the line for straight-up FIRE. I think, as you highlight, that the tough part is letting go and actually starting to coast. Admittedly, I'm still not really coasting, even though I know we could. I'm still mostly in the bargain-hunter mindset. The only caveat is that when I can logically rationalize spending more than the minimum, or covering high dollar expenses, I can do that pretty easily. I guess my thought process is that if there's a good reason to spend money, do it. I just don't want to be mindlessly frivolous or wasteful with our money either. So that's why I still pay attention to unit cost while shopping, or seek out the best value when I'm looking at those high dollar purchases.

Coast fire is from that blogger ceejay and posts here. She always talks about their coastfire journey. And I realized that coastfire makes it's possible to loosen the purse strings.

[LivingAlmostLarge]

It feels odd to say this in the same breath as my last post about the weird market behavior lately (as well as re-reading my post above from 2 months ago) ... But I've kinda started to just feel bored with our finances. What do I do with extra/"found" money? For example: I'm about to receive a per diem/related reimbursement for a recent work trip, ~$1800, which has otherwise already been covered through normal cash flow.

Meanwhile, our non-EF savings account is back to "pretty healthy" ($20k, about as much as I want to keep sitting idle); retirement accounts all getting maxed; kids' 529s/UTMAs growing sizeably; and our taxable investments otherwise continue getting money plowed into them (~$3k/mo).

Without selling alot of mutual funds, I don't have enough readily on hand to leverage it toward something big (like another real estate syndication deal or similar -- would require $50k-$250k) .... And sure, I can always just throw extra cash toward the investments, or over into savings ... But it kinda feels like it's all just meaningless numbers at this point, treading water & staying afloat for the simple reason that there's nothing else to do.

Maybe it's a factor of (1) being very busy with work & family stuff; and (2) being in a generally pretty good place financially, so I don't have to think/worry about it as much.

I guess it's just an odd feeling, not really caring about extra cash as it flows in, even though intellectually I know that this is serious money floating around. But most of our financial goals are either already met, or are on pace to be met by simply sitting back & letting it ride. Recognizing that this was my general mindset right now brought the idea of "Coast FIRE" back to my mind ... is this what it feels like? I'm not sure I like it... I'd rather feel actively engaged....

By the way I would spend the $1800. Or just let it ride. I forget all the time about reimbursements from work and other stuff. But I seem to be finding ways easily to spend money now without trying. I find that taking it easy and spending more is coming easier. How so? Stuff like went on vacation and bought a shirt. Kids laughed their heads off when my DH keeps saying we're not millionaires and you are buying a souvenoir. I really liked the feel and look of the $25 shirt. I wore it the next day. That to me is how you spend money.

That and the little things. Now I buy the fruits and veggies I want instead of what's on sale. We love cherries and i buy them. Before i couldn't imagine buying cherries at $12/lb. Now it's like well we really want to eat cherries. Or I buy premade salad bags. Whereas before I would never blow $5 on a bag of salad. it's winning the game. My mom is the same way.

When my mom was young and a single parents, her secretary an older woman who was widowed and also a single parent told her "one day you are going to be able to walk into a store and buy anything you want wihout waiting for it to go on sale. You are also going to buy whatever you want and not budget for it." Now when my mom visits and we grocery shop at trader joes (there's no in hawaii QMM you know how this goes). She will go hog wild and toss anything and everything into the cart and the kids do as well. There is no stopping her at any grocery store or store in general. She sees it and she buys it. She always says I've made it (and she really has).

So now blowing the $1800? I gotta say at coast fire? I feel the same way. The $1800 isn't going to let me retire 1 year earlier. But it might make the journey there a lot more pleasant. Right now I'm about the making the journey memorable.