QUOTE(fuzzy @ Dec 5 2019, 09:23 AM)
Agreed, people confuses frugality with miserly so often it frustrates me.
To me, living below means or frugality is a mindset to adopt, that if one have those mindset, we are always evaluating how we are spending our resources and if it 'brings joy' to borrow a cliché.
That enables us to free up more resources as we go on this journey.
I think the economics terminology is “marginal utility”. What is the extra satisfaction we get per extra unit of money we spent. To give an example: take a person with income of 10k and he spends 3k only with saving rate of 70%. If he increases his expenses to 6k. The extra 3k will provide a lot of utility/satisfaction because he can now enjoy air cond, high speed Internet, once a while outings with friends for drink or cafes . In such a case, the savings of 3k over the long run is in my opinion not wise. If his income later increases to 20k, then a case can be made for him to maintain his expenses at 6k because, once the most basic needs/wants are covered, additional spending provides lesser and lesser utility . So, ya, it’s a constant evaluation of “how much more happy am I going to be by spending this money” . If you are driving a Myvi, probably spending more on a Vios does not provide much added utility.. but going from taking bus to driving Axia is a huge increase in utility .
QUOTE(Jordy @ Dec 5 2019, 10:19 AM)
As long as the expenses can cover basic living needs, not something extra that we do not need to have, that is frugal.
Basic living needs:
- 3x meals a day. Do not have to overspend in this category, just eat economical food.
- Car can buy older used car, preferably with cash if enough saved up. Try avoid loans especially for brand new cars.
- If salary below 5k, try avoid buying a house. Renting is cheaper than buying especially if it's a single person. Unless really necessary, keep the monthly installment to below the 30% monthly salary threshold.
- Can opt for local travels, not necessary to go abroad. One year can travel 2-3 times locally instead of just 1 time abroad. Many people just want to be instagramable by going abroad. That one can be done when achieve FI/RE, the country won't run away.
I cannot comment on other discretionary expenses such as shopping, social life and entertainment as everybody will view that differently. But to me, all these discretionary expenses can be avoided totally without affecting the quality of present life. Those who just want to live the present life or adapt to YOLO lifestyle can forget about FI/RE as they don't emphasise on the future.
Yes.
QUOTE(Selectt @ Dec 5 2019, 01:34 PM)
I may stray abit from your topic. FIRE is great achievement that not many can reach. Happy and congrats to those that can. However, end of the day with all the money we gather, we spending it to create memories and experience for ownself at later life. Some will contribute to family and community, kudos to people that contribute/donate to others, obviously they are one level above. But why not do it now? Is theres so called perfect life? Why we gather so much wealth that we dont use,
you know you will never use.
Sometimes even the places we visited, we forget until we look at the pictures we took. Sometimes you wake up asking whats the point of life. Somehow it is hilarious, this is life. Lol
The problem is, unless you have way way more than needed, we don’t know really know whether we need the extra money/buffer in the future ... if only we know when and how we will die, then yes, we can spend the “extra”
QUOTE(cynthusc @ Dec 5 2019, 02:04 PM)
I think he is talking about private medical costs which is not covered by medical card because those above 70 usually cannot get medical card. My mum at 74 broke her arm and we kids paid for her surgery. Costs us close to 80K including metal plate, surgery and stays at the hospital.
Is there complication? 80k is a lot right for arm surgery ?
QUOTE(zstan @ Dec 5 2019, 02:11 PM)
this. my grandfather kena ruptured appendicitis, stayed in ICU and operation also more thaan 80k. No insurance coverage.
Is the bulk of charges from ICU? Even bypass does not cost that much right?
Nov 23 2019, 12:41 AM
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Tq bro,...
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