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Ask a Mustachian / Re: Car Question
« Last post by surfhb on Today at 02:02:29 PM »
I wouldn't.    It runs fine.

We're talking a very small amount of savings here based on your driving habits
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Thanks guys. That really helps.
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Antimustachian Wall of Shame and Comedy / Re: Don't Retire Early!
« Last post by Sam E on Today at 02:00:06 PM »
I think being in these forums and living a more frugal lifestyle causes us to forget how the average person lives. my in-laws were in town this weekend. They just retired about 2 years ago in their early 50s with pensions that were the equivalent to about 75% of their final year's salary. My father-in-law and I were talking about saving and retirement and he said that he not only wants both of their pensions, but also is pulling money out of a fund with about 350k in it at a rate that he expects to be gone by the time he can collect Social Security. He said he did not want to take a pay cut when he retired. Together I would be willing to bet their pensions alone are between 140-150k/yr. It's expensive to live a "normal" life, especially the normal life that someone that has the ability to retire early has likely become accustomed to.

This article is probably pretty accurate when it comes to your average person.
No, it isn't.  Median household income in the United states is about $50,500.  The top 25% have incomes of 'just' $85k, and even the 95th percentile earns less than $200k/year.  Excluding home equity, no age group has a median savings anywhere close to $200k

In no way does having $10MM in retirement - equivalent to $300-400k/year in WR - equate to 'your average person'.
If you convince yourself that spending even $200k/year is 'normal' then you have lost touch with how the vast majority of people in the wealthiest country on earth actually live.

http://en.wikipedia.org/wiki/Household_income_in_the_United_States

Did you not read what I wrote? I wasn't talking about your average person's income, I was talking about the spending habits of your average person and it being difficult for a person with your average spending habits to retire early which is exactly why I mentioned my in-laws that didn't even want to take a pay cut when they retired.

If we are speaking of your actual average person, which average people do you know that are retiring early?
I've (re)read your post, and I've (re)read the article.  The part of your post I take issue with I highlighted in bold.  I still cannot fathom how you think the article is accurate for your average person.  If you are trying to suggest that the average person is horrible with money, then I agree and we can just end the discussion here.

Where I see this as having taken a hard-right-turn-off-a-cliff from reality is the suggestion that the 'average' person cannot live on $10MM worth of investments, or the insinuation that working keeps you from spending money (when, for the average person, the opposite is true), or that people who retire become inactive and are 'just not doing anything'.

The average person, given 10 million dollars, would probably buy a huge multimillion dollar house, brand new luxury cars, maybe a boat... The average person allows their spending to inflate to whatever their available income is. I think that's his point. Not that an average person couldn't live forever on $10MM, but that the average person would find ways to spend it all very quickly given such a windfall. Just look at lottery winners who go instantly broke.
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Ask a Mustachian / Re: Replace RAV4 with Honda Fit?
« Last post by neogodless on Today at 01:59:42 PM »
My 2008 Fit is rated 28/34 by the EPA. I get just under 35 - about 33 in the cold months and 36 the rest of the year.
http://www.fuelly.com/car/honda/fit/2008/xxaaqq/300943
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Ask a Mustachian / Re: Car Question
« Last post by JLee on Today at 01:59:38 PM »
What does the math say?

How many miles a year do you put on the car, what's your anticipated Civic fuel economy, and what's your average price of gasoline?
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Antimustachian Wall of Shame and Comedy / Re: Overheard on Facebook
« Last post by No-stache on Today at 01:59:29 PM »
From my very best friend on car shopping:

"God. Just did my budget w/car payments & adjusting a few things. I'm gonna barf. It's so fucking tight. I'm going to have to reevaluate  everything."

"The problem is anything under 10k is going to be really old and lots of mileage so it's not really worth getting because I'm going to have to put money into it. I'm barely able to find decent cars at 14k. It's just ridiculous how much things are."

She should be getting anywhere from $4500 - $6000 for the car she totaled last Saturday. Thankfully no one was hurt in the wreck. She does keep a "budget" but it's a loose one. She works for a family as a caretaker for their disabled daughter. Some savings, no retirement, Obamacare, etc. I try to help her when she asks but man...sometimes it's hard.
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Matchewed - I do have a basic emergency fund of a few thousand already. So far it has covered the emergencies we have had. But would not be the solution for larger emergencies or job loss.

I chose $35,000 because that is what we spent last year. However, it includes things like debt repayments, emergencies, and some 401K deposits. I will need to reevaluate the numbers as I save, which will be a long process. You are right that it is likely too large. How would you decide how much to keep in this kind of Efund?

I agree with you somewhat that an Efund should be safe but the idea of a large amount of cash in a bank account seems wasteful. I don't plan to pull money from this account unless tragedy strikes or huge major repairs are needed.

Depends on where you are in your financial journey, your risk tolerance, your odds of an event happening...etc. Things to consider though; time to find a new job in the event of a job loss, odds of an emergency trip (things like needing to visit a parent), odds of needing to buy a car or repair a big thing...etc. These are things I can't answer for you and are particular to you and your life. This will guide you in framing your EF.

Again as I said while your emergency fund is small and you're saving you need it safe. As your net worth starts increasing your odds of damaging your financial picture via needing to dip into your net worth decrease. Essentially when you have more money you don't need to have as much of an emergency fund (if that's your risk tolerance).

Re: disability, the system is designed just for this. You aren't abusing the system by using it as it is intended. It's meant to help households just in your situation. Use it. You'll FI quicker and there would be a support system in place if something were to happen to you.
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Antimustachian Wall of Shame and Comedy / Re: Don't Retire Early!
« Last post by mizzourah2006 on Today at 01:58:48 PM »

I've (re)read your post, and I've (re)read the article.  The part of your post I take issue with I highlighted in bold.  I still cannot fathom how you think the article is accurate for your average person.  If you are trying to suggest that the average person is horrible with money, then I agree and we can just end the discussion here.

Where I see this as having taken a hard-right-turn-off-a-cliff from reality is the suggestion that the 'average' person cannot live on $10MM worth of investments, or the insinuation that working keeps you from spending money (when, for the average person, the opposite is true), or that people who retire become inactive and are 'just not doing anything'.

That 10mm worth investments and just not doing anything were two small parts of the entire article, which is why I said pretty accurate. I was referencing the fact that many people spend as much as they can. Thus a statement like this:

Quote
“Chances are I might spend 20, 30 to 40 years in retirement if I retire in my 50s. That's a lot of time, so if I retire in my mid-30s, that money will have to last me 50-plus years, and I just don't see how it happens.”

would be true for most people that try to retire early. I wasn't saying everything the author said was true, but that the general premise of the article, i.e. that spending 40-50 years in retirement would likely leave your average individual broke based off of the fact that your average person has terrible spending habits.

Also, I know several people that have retired with 1.5-3 million dollar nest eggs (lump sum pension distributions) and blown it in 5-6 years only to have to go back to work again, so 10mm over 40-50 years for someone with "normal" spending habits may not be enough.

Again, I think we forget that we look at money and it's ability to produce a passive income for us in a completely different manner than most people.  I was not trying to infer that every single point the author made was accurate and was focusing on the ability to live off of a nest egg (which 10mm is a bit extreme, because there are very few 30 year old's that will have that type of money) likely being difficult for your average person with average spending habits.
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Antimustachian Wall of Shame and Comedy / Re: Weave Loan Store
« Last post by slugline on Today at 01:58:16 PM »
I suppose the analog for the lighter-skinned would be tanning salon lending???

Just think of the fees you could bake into those loans. . . .
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Welcome and General Discussion / Re: Ladies, can we talk makeup/products?
« Last post by mlipps on Today at 01:57:16 PM »
Dyeing hair with henna is a thing, AND you can dye your hair red?!?! Oh man... I was a box hair dye redhead for years as a teen and I LOVED it, but I stopped in college because it made my hair like straw and a full-head application every six weeks got old.

Is henna dyeing really actually good for your hair and relatively easy to keep up?! This is blowing my mind.

Henna is incredibly conditioning. You can only use henna to color if your hair is lighter than the henna; nothing without bleaching or peroxide properties can make your hair lighter. The only options for henna are darken or redden. If you're a blonde, it will absolutely dye your hair. If you have darker hair, it can add red highlights/red sheen, but won't change base color.

This is the most useful website I have EVER found for henna: http://www.longhaircommunity.com/forums/forumdisplay.php?f=21
Crunchy Betty also has a pretty accessible guide: http://www.crunchybetty.com/the-fine-art-of-dying-your-hair-with-henna

You know how models have that thick, silky, frizz-less hair that still curls? Yeah, henna conditions so well that that happened for me. Just be sure to pay attention to what brand and source of henna you get. Contaminated stuff can have heavy metals, which = cancer risk, and can result in brassier/more orange color.

Be sure you like the color of henna. It won't give you a magenta type red like it popular right now. It's a pretty specific color, but it looks pretty natural. People I've met the past couple years are SHOCKED that I'm not a natural redhead. I had one girl argue with me so much I had to find an old picture and prove it to her.

Also, if you're intimidated by doing the henna yourself, I've heard they'll do it for you for free at Lush if you go during the day on a weekday & bring your own supplies. I LOVE henna.
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