Over Memorial Day weekend I was lucky to attend a “Financial Conference” as I explained it to people.  In truth, it was a hangout session for money nerds, which was quite accurately disguised as a “camp.”

I’ve been to a CampFI before, the “Southwest” version at Joshua Tree, and was just as thrilled this time after spending three more days with my people again this year—albeit different my peoples as CampFI Mid-Atlantic.

He’s the really cool thing, the group of seventy plus people ranged in ages from 23 to maybe 63ish.  To be even more clear, there almost were three generations in attendance but there weren’t different levels of discussions.  ALL ages of people were engaged in discussions, on all topics, no matter their age.  EVERYONE in the discussions added ideas, perspective, and additional inquiries.

I’m quite an introvert at heart—just like many others I’ve come into contact with in the FI world—yet at the CampFI’s it is so easy to talk to everyone.  To me, it’s the strangest thing to just walk up to someone and start chatting, then go more in-depth on a topic, or multiple topics, a process that just seems so natural.

Discussion timelines were quite amazing as people talked very late into the evening and were often up early getting their bodies in gear with some form of activity.  The campers sure seem to really live life to the max and get the most out of their day(s).

For those who don’t know, CampFI is three days of hanging out with people so similar to yourself.  We arrive on Friday afternoon and leave mid-day on Monday.  The camps are located outside of a populated area in a (youth?) camp-like setting.  It’s a little basic on the lodging and dining side, but that seems to fit us FI people just fine, especially since we often cherish experiences more than material items.  We do not seem to need luxurious accommodations.

The days are really very loose and open with lots of free time to gather, play games, snack, hang out, meet, then meet more, and truly get to know so many people living a similar intentional lifestyle.  One very cool aspect is that everyone comes from different professions and often different parts of the country (or even worldwide). 

There are a couple of hour-long presentations each day on life topics.  The presentations are not really geared toward money talk.  They seem to be more about a higher level of thinking, of living the best life on your own terms.  I’m sure that is on purpose as we all consume money -talk media non-stop in our real lives. 

The group size at both of my camps has been great.  There are lots (70ish) of people to hang out with and make friendships, but not too many to be overwhelmed. 

In closing, I think my main thought is that I find I really care about the people I’ve met.  I’m excited to stay in contact and watch their lives progress towards more-awesomeness.  At (and after) camp, it’s not at all like the instagram-highlight reel lifestyle, but a much truer, more real, we’re-kicking-ass at the lifestyle we choose.

If you’re really into living an intentional FI related life, CampFI is a great way to rise up another notch.

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

Do you live each day with enjoyment?  Do the events that unfold throughout the day add to your satisfaction?     [please say yes]

We have a family member who is getting older and lives each day with enjoyment, excitement, and passion.  That is so much of what we all want in our own lives.  The hard part of this story is that most of their thoughts are in those daily moments.  The past activities are not as bright and visible.

Senior Moments:

As we age, we all have some brain connections that slip or miss.  These often have been referred to as “senior moments.”  That makes sense as they happen more frequently as we get older.  They can be simple things like you can’t quite remember the name of a business or exact location.  At first, it seems the reason you can’t recall the information is that you didn’t pay full attention at the time of the action or other things have come up since that activity.  Yes, that is true, but it’s also because our brain synapses’ just aren’t firing and connecting quite as well as they used to in processing information.

Headlight Range:

The analogy I envision is to think about driving at night on a quiet country road.  What you’re concentrating on is the activity right in front of you.  Sure, you can also see a little way up the road with some headlight glare.  But just outside those bright lights, the view somewhat darker.  The activities are right there, just outside the brightness, but they are hard to make out clearly.

Think about looking in your rearview mirror.  Immediately behind your car may be visible, or somewhat visible because your taillights give some light, but farther back, it can be very dark and hard to recognize.

If there are streetlights, business lights/signs, highway signs, other car headlights, those will help you see outside your own headlight area.  I feel like those helping lights are people around you who are with you and possibly assisting you.

My question, is living within the headlight visibility area OK?  Sure, if you see the brightness is the day, in the activities.  If you concentrate on those areas that are dark, then you may not feel as positive about your life journey.

Enjoy Each Day:

Whatever we do in life, I really believe finding the positive and enjoying your day—whatever’s in your visual/visible range—may be the most important thing we can do for ourselves and others.

If possible, strengthen your own shining light with exercise, diet, social interactions, whatever it may take.  One morning we will all not see the morning light, so enjoy each day!

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

DONE!  25xExpenses saved.  You’re ready!  Time to truly evaluate the FIRE lifestyle, or Fully Funded Lifestyle change many of us are talking about right?

[insert screeching sound]  BEFORE jumping headfirst into your new awesome lifestyle, please (re)consider two things:

1. Are you calculating your 401k/IRA’s balance(s) in your 4% withdrawal rate?
2. Are your expenses all-inclusive of all the money you will need each year?

Qualified Tax Deferred balances:

I keep reading articles with the amazing accomplishments of “maxing/maxed out our retirement accounts.”  That is an amazing accomplishment in today’s economic/consumption lifestyle.  My concern is $500k in a 401k does not necessarily equal $500k spendable/$20k per year in spending.

Instead of spending $20k, you are actually using the 4% rule to withdrawal $20k for the spending amount plus taxes.

Now, of course, $20k counted as ordinary income—if your only income—is not going to hit you hard on the tax side.  However, if you were a big-time tax-deferred saver and your qualified accounts have skyrocketed, you may plan to take a much larger withdrawal THANK $20k, thereby pushing you into high teens/low 20’s total tax brackets (Fed, State, Local, sales, etc) or even higher (good problem actually).

I believe it’s safer to be more cautious and I adjust my personal retirement account balance to a projected 70-75% spendable amount.  At least for the big picture planning.

Expense Inclusions:

So you say, “I/we spend $3000/mo (or $4000, or $5000, or more) for our lifestyle.”  I’m assuming that is your after income-tax spending.  I mean, who calculates how much they are required to allocate for funding the government each year, right?  I can tell you exactly who knows, people who send in quarterly tax payments because they are not receiving a paycheck/annuity-type payment that has automatic withholding.” 

I know without a sliver of doubt, when you decide to take money out of your qualified accounts (I love the word ‘qualified’ as in accts, dividends, etc) you will know quite clearly how much net withdrawal you get to keep/spend and how much is going to your non-related uncle.  Or for the wise planners here, how much the Roth IRA conversion amount will cost you in taxes.  How’s that for using a Roth to find a positive slant on paying taxes?

Quick example:

You’re older, and you are all set up with retirement accounts and social security.  Life’s good.  But you decide it’s time for a new car because at your age you don’t want to hassle with AAA and/or getting your car repaired across town.  If you don’t want to make payments on a basic $20k (or cheap $8k) car and decide to use your “savings” you have to pull say $25k (or $10k) from your nest egg. 

Your large purchase will require a withdrawal of the vehicle’s price + sales taxes +other registration taxes PLUS the income taxes at your highest marginal rate.  This withdrawal is at the top of your income…top end of your ordinary income.

If you wanted to purchase a vacation home for cash…can you feel your uncle wringing his hands at your upcoming payment to the IRS?  Not exactly a house warming celebration party.

Not all account balances are true balances.  Sometimes (often) there are implied obligations within those balances.

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

I’m so not normal.

The other “morning” I went to the gym.  I usually arrive between 9-11a two days during the week.  At this time I tend to join a large contingent of silver-haired people moving their bodies to get their blood pumping in an attempt to better their lives.  It’s so inspirational.  It’s so rewarding to know I am on the same schedule with these folks living off-peak.  Have you ever been to the gym on Monday at lunchtime? It’s usually “chest day” and you’re not going to see a bench press station for an hour.  I love going a few hours before, rush-hours, yeah.

Oh, back to my story.  As I’m checking in, I hear the janitor lady talking to one of the other employees about her $400 car payment.  She seems to be half complaining and half accepting. 

I wonder a couple of things, 1) does the janitor have a pretty nice car in that she’s paying $400 per month, 2) is she paying that on a 4 yr, 5 yr or longer loan, 3) maybe she has to have a “reliable (nice) car to get to her janitorial assignments 4) does the janitor have a nicer car than me [yes].

I thought about this a little as I made my way around the 80% empty gym for an hour.  I thought about our owned—often older—items and think how those savings have really helped our lifestyle.

At this point my workout is complete and it’s time to dept my silver-haired cohorts—actually, most left by 9:30a.  I’m walking to my 19-year-old Toyota truck and the membership sales guy in his early 20’s is showing off his new(ish) Jeep Wrangler with big tires/lift kit.  I hear him say something about the cost for this or that and see the two other guys giving him fist bumps.

    [typing that out, I just realized he was in diapers when my truck was new.  Holy $h!t]

Driving home—and drafting this post in my head—I wonder about how we’re all going to deal with older age and cash flow.  How much money will people need?  Where will the money come from?  Are people spending too much too young?  Are people spending their future required dollars today—with no regard, or little regard for the future?  Will everyone even have a “future?”  [That may be my first existential posted thought]

There is no doubt we should enjoy each day.  I wonder if it’s possible for the masses of people to enjoy with a slightly lower cost structure?  I believe spending a little less, and saving a little more, may lower the financial stress and magically allowing for a little more enjoyment of each day.

Other thought:  They say talking about money is taboo, but I guess some people (above) do talk about money.  They just use different examples than FI people use.

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

This was an article I wrote for www.Fiology.com

Our story seems quite different than most, but anyone can use pieces of my life examples to better yourself, including my mistakes.

Lessons: 

My story to LifeInFIRE started as a (lucky) middle-class 12 years-old when I was taught how to save and how bonds/high-interest rates worked.  That year Alaskans received checks of $1000 each.  My dad made me save mine, while ALL my friends bought new stuff.  A few years later I had enough to buy a car, but I was forced to buy an older car.  I had a little summer part-time job and my dad told me if I saved some money, he would match it.  I saved ALL of mine and spent his.  These turned out to be great learning opportunities that I don’t regret at all.

Spending:

I also watched my parents log their spending in a multi-column budget book each evening. They could quickly and easily track their expenses over time.  I’ve done this in a few different ways since high school. It helps you become aware of your current and historical spending.  Note: we spend almost the same decade after decade as some items rise and other categories drop.

Delayed gratification:  

I learned you can get what you want, but make sure it’s what you really want, and you can pay for it, rather than paying the bank back.  I guess I was a lucky child in that I received a gift for christmas and my birthday, usually what I had been asking for over the previous months.  I learned that I had to wait.  It became normal.  30+ years later I still plan for what I want, research, validate and then make the purchase decision at a later time.  It helps to stay out of stores, or bringing my wants/shopping list for some structure.

Investing Oops: 

You won’t have this problem in modern times.  I learned about investing in bonds 12-15% in the 80s.  At the time a stock trade could be HUNDREDS of dollars.  You know about low-cost index funds, I wish my MBA had said just three more words “Total Market Index.”  I had no clue.  Luckily you are educated in this regard.  Remember, you can overcome lower investment returns by saving well.  However, it’s very hard to use investment returns (unicorns) to overcome low savings.

FIRE/Not working: 

It was NEVER my intent to no longer be a worker (retired) at 43.  I originally planned to leave corp America in my early 50’s to teach (at a comm college) and give back to how I started my career.  To prep for the change, I actually taught night classes for over 20 years, while working a busy day job (side hustle wasn’t even a thing yet).  I saved EVERY dollar from my teaching side hustle because it was just an extra “playcheck.” 

Some differences:

We do not have children.  We had smallish, manageable college student loans (graduate as well), some with parental assistance, some with employer assistance, some paid for monthly/aggressively for a few years (at 90’s tuition rates).  We both were working professionals.  We targeted a lifestyle (once we got better organized) of living off one salary and saving the second.  That allowed less stress from daily work—even the possibility of a layoff.  Financial INDEPENDENCE has many levels, but they all give you control, power, freedom.

Great markers

If possible:  Same spouse, same house, same cars over time, save early and continually for the future.  If most of the items work out, you will have a stronger, less stressful financial life and possibly (much) more freedom into the future.  (Yes, that was worth repeating from above)

                Same spouse (25+yrs together), same house (27yrs, 1026 sq ft), same cars (10+ yrs, purchased as 3yr olds), save early (one of our paychecks * 20yrs) and continually (still do a little part-time work for “playchecks”).

Giving: 

A big part of my life seems to entail giving back in my own way.  There is no big activity or a five-foot-giant-check handed to someone, but rather lots and lots of small efforts to try and help others have a better day/life.  It may be like me; teaching, presenting, writing, having a conversation, listening to someone, performing an action to help (carry something, pick something up for someone, smile) in the smallest of ways.  If you give out positivity, you will surround yourself with said positivity.  (Even grumbling old(er) men can give, I prove that).

Health:

It is vital that you put effort into your health and wellbeing.  A strong, happy body will carry you throughout your day much easier than being broken down.  I lost 140 pounds when I was 29- 30, anything is possible.  Move, get some sunlight, smile to others and fuel your body with the vitamins and nutrients you need.

My wife and I are so basic/normal (stealth?), but we do what we want (planned out) and have a great life.  Thousands of smart little decisions over time may multiply into your greatness or really goodness.

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.

This is an update to last year’s post.

I went to Goodwill on Thursday, Jan 3rd, 2019 because I was passing by after the gym.  THE GOODWILL RACKS WERE PACKED!!! 

I could not believe all of the items on the racks and shelves.  It was like hundreds of homes had cleaned out their over-consumption stuff for other’s to enjoy at discount prices.  The clothes were so packed the hangers couldn’t slide.

Question:  Friday or Thursday?  Friday starts a new color of half price tags.  Thursday those color tags become $1 each just to get the merchandise out of the store.

As I said, I was there Thursday—usually slim pickings-—just to see if they had anything good available.  WHOA, there were dozens and dozens of $1 clothing items, household items, books, etc.  I looked around a little and ended up with 10+ items for $13 (I had to over-pay more than $1 for a couple of nice clothing items; Oakley, Nike ~ 1.99-2.99).

I know in the next 3-4 weeks—as the color tag cycle rolls over—there will be so many great deals.  I now have a “goodwill wish list” on my phone of clothes/things to look for—just like an Amazon wish list, but for Goodwill.

Original Article from 2018 below:

Let’s talk about shopping.  There’s either planned need-based shopping or entertainment shopping.  We’ve all done both at many times in our lives.  Of course, we’re supposed to just perform planned/need-based shopping excursions, but that’s no fun.  Let’s talk about discount shopping—with a plan.

Normal shopping has a few pricing models, full-price, sale-price, some other crazy-price.  The goods we purchase come in two states—new or used.

Today I feel the need to talk about used items.  Something that someone wanted to get rid of and allow us to have that those items for less money.  So excellent for the wallet!  There are many used item locations ebay, craigslist, garage sales, neighborhood posting sites, thrift stores, (bulk trash for some), etc.

Let’s talk about Goodwill thrift stores.  Tons of merchandise—some horrible junk, other may be nice finds or “treasures.”

Here’s the best part:  Goodwill stores often have multiple pricing options.  Full priced items, half priced items,  and excellent $1 items.  Many Goodwill stores base the price on how long the item has been for sale in the store.

• Full Price:  As items arrive they are priced with the new color tag of the week (e.g. pink) for full price.  I’m not sure, but I believe my store has 5 colors of tags— as an example a store may use Pink, Purple, Green, Blue, and Yellow. 
• 50% off:  The fifth(?) Friday after arrival, those old pink tags become 50% off their full price to incentivize people to get those items out of the store.  Friday morning can get a little busy in some goodwill stores.  There may also 50% off Saturdays when the entire store is on sale.
• $1 day:  Then on the following Thu—end of that color’s 50% off week— all those 50% pink tagged items become $1 to really try and push the items out of the store.  Thursday morning can be even crazier.  Imagine getting jeans or a jacket for $1. 

Then the next day (Friday) the discount process starts over with the next (oldest) color, in this example, Purple tags become 50% off their full price.

There are also 50% off Saturdays,  Senior 20% off Tuesdays, Military day savings, etc.

My tip:  Near the end of the year many people donate items for the tax write and in Jan many items are donated because of new year’s ‘cleaning’ resolutions.  So if we can time 5 weeks after these items arrive (mid-Jan – mid/late Feb) you will find a large selection of very discounted stuff.  My local Goodwill’s racks are jam-packed with clothes and shelves are stacked with items. 

I’m sorry this post went up at the end of this timeframe, I just realized myself why there was so much stuff at the stores.  Keep a shopping list of items you need/want in your task list.  Set up a calendar reminder for late Jan and Early Feb next year to take advantage of Goodwill Thrift Store donations sales to load up on stuff and save your wallet some serious money…and have hopefully a great entertainment shopping adventure.

*** Nothing in this article is to be construed as financial advice.  I am not a financial planner, nor do I pretend to be.  You should always consult your own professional when seeking advice.