Rich Examines Moving Expenses, Minimalism vs. Serial Killers, His Cat’s Shopping Habits, Modern Living, and The FIRE Desire

Dear Penny,

I thought it’d be interesting to compare our actual moving expenses with our estimated moving expenses. And I believe this will lead into a rant about modern living, early retirement, and education. We’ll see.

Let’s take a peak out the window of our new situation.

Is this home?

Before we moved, I estimated $30,000 in expenses. The big expense was our car, because now we need 2 cars as modern dual income working professionals. We also needed a bunch of furniture because all we owned was a couch, a bed, and an old dresser.

Well, the numbers are in — gaze upon them and be astounded:

Click on image to enlarge.

I’m not sure what’s astounding about this, I just wanted a dramatic transition.

Mrs. Rich told me my estimates were too low, and she was right. That said, I was expecting it to be worse. Every time we leave the house we spend a few hundred dollars on something. I’m not complaining at all — we knew we’d spend a lot getting a car and getting our apartment set up. $6,000 isn’t nothing, but I’m not going to lose sleep over it. I decided long ago I don’t want to lose sleep over money. 

Here are some observations about minimalism vs. frugality, modern professional living, and FIRE (financial independence / early retirement).

MINIMALISM VS. FRUGALITY

The personal finance blogosphere has already noted this apparent paradox, that minimalism (desiring fewer possessions) is often at odds with frugality (desiring inexpensive possessions). I think we’re a good example of this.

I was telling someone about the furniture we needed, and they commented, “You could find a lot of that on Craigslist.” I can’t remember what I said, but I was thinking, “Do people still buy second-hand merchandise from would be serial killers?”

But seriously, the Rich family doesn’t use Craigslist. Mrs. Rich and I agree that we don’t really want a cheap find; we want a quality piece of furniture that we enjoy and would like to keep. That’s minimalism vs. frugality. So when you look at the line items like Rug, Dressers, End Tables — that’s what you’re seeing.

Even the cat is getting into the act, showing an interest in Crate And Barrel!

Do not give this animal a credit card.

MODERN PROFESSIONAL LIVING

I would describe us as modern professionals. We’ve got the dual careers, the dual cars, the school activities, and the Vitamix. This is what we want. But in the midst of this tumultuous transition, I need to say something: I understand.

I understand the desire for simplicity — something you, Penny, have expressed over and over in one way or another. My life right now isn’t difficult, but it isn’t simple either. And this is mostly by choice, and the consequence of a life where one moves around.

We’re busy, juggling school related activities and work related activities. On top of it all, I volunteered to coach Kindergarten soccer. What was I thinking? Yet another activity.

Most of our stuff is still on a boat, so we’re eating take out on paper plates. At night we’re exhausted. It won’t last forever, but it’s been quite week. Or two.

I understand your mixed feelings about education in America. We went from a small cozy international preschool to a huge chaotic urban elementary school. Our boys, so far, don’t like it very much. All the rules, regulations, and impersonal interactions … I understand why you can’t stand it. Part of me wanted to pull them out after the second day, drop everything, and move to Finland.

THE FIRE DESIRE

I understand why people strive for FIRE — Financial Independence and Early Retirement.

Continue reading “Rich Examines Moving Expenses, Minimalism vs. Serial Killers, His Cat’s Shopping Habits, Modern Living, and The FIRE Desire”

The Best Of Penny And Rich So Far — 6 Months Of Conversations Across The Income Divide

Dear Cousin Penny,

We’ve been at this blog for around 6 months, so I thought it’d be a good time to go over some highlights. This article will contain numerous links to some of our best posts. Of course, a complete list can be found via the Posts tab.

For any new readers, I’ll quickly reiterate our premise. We’re cousins from a small Midwestern town. One summer, around age 10 or so, I think we played together every day for 80 straight days. Good times.

Our adult lives diverged but we kept in touch, often writing long emails to each other about life and happiness and money — which is essentially the genesis of this blog.

You got married young, you have 4 kids, and your husband went from teacher to chiropractor. Along the way you gathered a boat load of debt, but you have no regrets. Low income doesn’t seem to bug you.

As for me, I went from the farm to theology school to French language study in Paris. Much to my own surprise, I landed a high income career, married a woman with similar career goals, and had twin boys. High income agrees with me. Why wouldn’t it?

Our full origin stories can be found here:

RICH’S GOALS

Click on image to see the details of Rich’s plan.

What’s a personal finance blog without goals? My goal is to reach a $1 Million net worth sometime during my 45th year of life. And after that I want to build a generational family legacy (um, in 3 easy steps!).

I admit, since starting this blog, the goal has become less important than the journey, the process … life. As I’ve thought about my philosophy of life, it’s become clear that it’s really not about the money. It’s about relationships, growth, and freedom — these are the keys to happiness, incidentally.

I have also become keenly aware of how lucky I am. I don’t want to be a selfish materialistic hedonist; I want to be a generous squirrel. I never thought I’d write a parable about squirrels, but this is modern blogging. Animals can talk.

So, I hope I can meet my goal the right way. Since we started the blog, I’ve been able to keep pace.

Click on image to enlarge. My actual pace is the blue line, the pace I need is the red line.

So far so good!

But, again, I’m much more concerned about happiness than money.

PENNY’S GOALS

Click on image to see the details of Penny’s goal.

Now to your goals, Penny. You have enough student loan debt ($173,000 at the start of the blog) to make Dave Ramsey drop a dadgum mess in his britches. You’d love to pay it off, and you’re making good progress. I’m not sure how much you have left right now, but I think you’ve already lopped off $20k of debt in a few short months.

I’m continually amazed at how frugal you are when I read your monthly money checks.

But, like me, you know money is not the key to happiness. You spend very little because you just don’t value things that need to be bought. Even with low income, you feel the need to give more than the need to get out of debt faster. In addition to giving, you’ve learned the art of receiving.

THE IMPORTANCE OF HAVING CONVERSATIONS ACROSS THE DIVIDE OF INCOME INEQUALITY

Penny, sometimes I think we agree on a whole bunch of topics and sometimes I think we couldn’t be more different. But what I really appreciate is that no matter the topic, we can have an honest conversation, even if there are points of disagreement.

Continue reading “The Best Of Penny And Rich So Far — 6 Months Of Conversations Across The Income Divide”

Rich’s Travel Journal: No Spain, No Gain! (Part 1 — Barcelona)

This page has affiliate links to good products we endorse. Full disclaimer.

Pen,

A while back I wrote about my 3 Key Ingredients For A Great Vacation. The ingredients are Exciting Destination, Quality Lodging, and Memorable Activities (all geared in some way to accommodate me, Mrs. R, and our twin 5 year olds). And now it’s time to tell you about how this works in practice. In April, you see, the Rich family took a 2 week vacation to Spain! Exciting Destination? Check.

Our vacation was essentially 2 trips combined into one. We started off with one week in Barcelona and then flew south to Andalucia for the second week. These are completely different areas of Spain, they don’t even feel like the same country. I won’t get into the details but Barcelona is part of Catalonia, which has grumbled off and on for independence for many years, while Andalucia is solidly Spanish, the “real” Spain, as it were.

We started in Barcelona.

BARCELONA

I’d always wanted to visit Barcelona, so I was pumped to spend a week there. Our arrival, however, wasn’t entirely smooth. During the flight over, we noticed one of our boys had a finger that had turned into a giant red balloon. He’s a tough kid, but it was bothering him and kind of freaking us out because we didn’t know what it was. Broken? Sprained? Bee sting? Cat scratch? No idea.

Our hotel called a doctor who kindly came to our room to check him out (another perk of a nice hotel), but Mrs. R had to take the boy to the emergency room anyway, and yadda yadda we got a bunch of medicine and lotions and still don’t know exactly what it was. We lost one day of activities, and eventually the swelling went away, probably on its own. Added a little spice and annoyance to the trip. All part of the fun!

In addition to this medical situation, we had the normal 2-3 days of crazy transition. The boys always test our limits in a new environment. Thankfully, the environment was awesome, the epitome of quality lodging. Our hotel, the Alma Barcelona, is one of the few in the city that has an indoor pool. It was the perfect temperature and depth for kids, while being stylishly located in the hotel spa. It wasn’t the Fargo Holiday Inn, if you know what I mean. We were often the only ones there and it was an oasis of fun.

Lots of swimming

Our suite encompassed 2 separate rooms — one for the kids and one for us.  Each room was huge, with its own bathroom and sitting area and complimentary snack fridge. Yes, pricey, but there is no way we will sleep in the same room as the boys while on vacation because it’s impossible to actually sleep with them jostling around.

Lodging was good, so what about memorable activities?

It took us a while to get rolling in Barcelona. The first day gave us the finger, ahem, and the second day we had scheduled a visit to the Aquarium. The Aquarium was nice, but honestly there are great aquariums everywhere. Probably wouldn’t do that again.

It was much more fun to find lunch in the nearby neighborhood of Barceloneta. We stumbled on a cool fish place that was chaotic and crazy and awesome and happens to be a gastronomic icon: La Cova Fumada. The boys downed octopus like it was candy.

La Cova Fumada. Crazy and crazy good.

Fun. And then we just wandered. I think we stopped at a playground where the boys played with some random kids. Cool part of town.

Continue reading “Rich’s Travel Journal: No Spain, No Gain! (Part 1 — Barcelona)”

Rich Reviews Where His Money Went in 2016 — His Future Self Will Be Proud

Dear Penny Pincher,

Unlike you, I have no problem spending! Especially when that spending aligns with my philosophy of money and the meaning of life. I set aside savings first, but as long as I’m on track with savings goals, I see little value in hoarding money for my future self.

In his book Stumbling on Happiness, Dan Gilbert argues that people are really bad at predicting what their future selves will want. Moreover, studies often show that older people wish they had traveled more when they were younger rather than saving for a hypothetical trip in retirement. Mrs. Rich and I have taken these ideas to heart, especially since we’re not trying to retire super early like Mr. Facial Hair and the FIRE crowd. (Note: I love the FIRE crowd and their blogs, it’s just not my destiny.)

I think the future Mr. and Mrs. Rich will be proud of how we spent money in 2016. Before I reveal the numbers on expenses, let’s talk income. Our gross income was $250,000 (not including illiquid investment earnings). We worked hard and had our best year so far. I’m not sure why, but I think income often gets lost in personal finance articles. It’s hard to manage money if you don’t have any, and education + career choices matter when it comes to income.

Here’s a chart showing our expenses by category, such as Investments, Travel, Food, Taxes, etc. Can you guess what the percentages are referring to?

Rich’s 2016 Expenses By Percentage

Continue reading “Rich Reviews Where His Money Went in 2016 — His Future Self Will Be Proud”