Retirement; like your parents, but way cooler
In 1991 Billy and Akaisha Kaderli retired at the age
of 38. Now, into their 4th decade of this
financially independent lifestyle, they invite you
to take advantage of their wisdom and experience.
When Is it
Wise to Spend
More in Retirement?
Billy and Akaisha Kaderli
Recently, an interesting question was
presented to us:
How much is Enough?
We posed this same question to ourselves
when we were contemplating early retirement. But what about
now, three decades later?
4% rule be damned
Years of capital appreciation due to
decades of compounding and proper money management has
handsomely in the growth of our net worth and financial wellbeing. Now,
30 years later, do
we still need to be diligent in monitoring our spending and outflows, or is
now the time to seize the day and go first class? Eat in trendy
restaurants, be seen and show off our wealth?
is definitely not our style...
Flying under the radar living a bohemian lifestyle
is more like us, and
here livin' the dream.
In fact, some family members and friends
consider us ďpoorĒ as compared to their
consumer-based standards. Thatís
fine with us. We have
not owned a car for years and we tend to live in
foreign countries where we can geographically arbitrage value for money
spent. We prefer experiencing cultures and cuisine as compared to a shiny
new car, club membership and debt payments.
We are just trying to make it to Friday
There are many ways to live a life, and our
choice is unique to us. Itís
a lifestyle not a vacation and our approach is one that we created based on our
personal values and interests.
But back to the question of when we might
loosen the purse strings... Should we start living on more - or less - than
the $30,000 that we have done for years?
We now use more private drivers than
chicken buses, stay in pricier hotels (not always a better choice),
and weíve set up a stable, semi-permanent home base in
We donate freely, giving our time and
others less fortunate, as well as teaching people
better money management and life skills.
There are needs everywhere and we do our
best to contribute. As always, we want results rather than throwing
money at a problem to feel good and brag about it.
Checking back in with
the 4% rule, we took
a look at what that number would be for us today and both of us asked " how
would increasing our spending to that amount change our lives?" Granted, itís not Bill Gatesí level,
but how much more can we eat, drink, travel, be merry and give away?
But thatís us.
What about you?
Is it time for you to flip the switch from
saving and being frugal for your future Ė to enjoying a higher standard of
living and giving back to the community?
Below are a couple of suggestions which
might clarify this question for you.
Know where you are
Life circumstances change.
None of us know our exit date from this
planet. As each day passes, we are one day closer to the end of our
adventure. But you could check some
actuarial tables to see where you stand
in general. We
are not saying throw caution to the wind and start ďX-ingĒ out days on your
calendar. Rather, utilize this bit of information to get a clearer picture
of where you might be.
Imagine if you knew your Date of Death.
Would that change your spending habits or the way you live?
you or your spouse had an awakening in regards to health? Do you want to open a foundation
that produces results and wealth? Begin a new business or leave a particularly handsome legacy for your
If you have been
tracking your expenses and
are comfortable with your lifestyle - no matter if it is .1% or 3% of your
net worth - do you have the confidence to increase that spending percentage?
increase your spending amount,
how would it change your life? Does it
bring value to you?
Know what you want
If you have found yourself in the blessed
position where you can open up the purse a bit, then what?
Do you want
a bigger, better house? Or two? Do you want to RV through the country's
national parks? Fund a
cause close to your heart? Or
pay for the education of a Maya girl in Guatemala?
about taking the grandkids to Europe or Asia? What else would motivate you
in spending just a little bit more?
Itís that simple
All of us who have had the years of
order to FIRE can find ourselves face-to-face with our frugal
habits, even when they are no longer necessary.
If you want to loosen the
purse, then start small. Whether it's an increase in the dollar amount daily or monthly,
ease into your new style of spending.
Remember, you are the captain of your ship
is no prize for being the richest guy in the graveyard.
This is your adventure.
About the Authors
Early Lifestyle appeals to a different
kind of person Ė the person who prizes their
independence, values their time, and who doesnít
want to mindlessly follow the crowd.
Retire Early Lifestyle Blog
About Billy & Akaisha