Author Topic: Sorry guys but we're doing it all wrong.  (Read 5126 times)

Mr_Y

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Sorry guys but we're doing it all wrong.
« on: April 20, 2013, 06:03:51 PM »
Calling all reddito-mustachians; face-punch needed ASAP at /r/personalfinance - suspect is smug and dangerous, I repeat suspect is smug and dangerous :  http://bit.ly/11xoZZ9

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Let me start out by saying that I work for an asset manager and our management fee is as much as 2.0% of assets.

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Lifestyle inflation is not a sin, it's a reward. I believe that rewarding yourself is a healthy part of life. For instance, I love to go to restaurants and I've dropped $500 on dinner for two more than once.

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Most importantly, you cannot simply say that >"A portfolio of broad-based index funds offers a far greater probability of providing the returns" This mantra is simply not true. Diversification is spouted by academics who believe that market are efficient and by professionals who make minimizing career risk a top priority.

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to chastise people because they're only saving 20% of their income when they have the potential to save 50% is ridiculous.

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Mr.MoneyMustache says some pretty stupid things about this, imo

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I also think it's a waste for a healthy person to retire

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I do find it annoying when anons criticize the OP for spending $200/month on beers with friends while still saving a respectable amount of money.

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There are managers who can consistently outperform the benchmark. This is done by reducing diversification.

Disclaimer: Yes, I am in fact guilty of cherry-picking, I report like CNN and I should feel bad - but goddammit this guy is so smug!

PS: First post, hi everyone!

arebelspy

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Re: Sorry guys but we're doing it all wrong.
« Reply #1 on: April 20, 2013, 07:05:16 PM »
Welcome!

Some people are so entrenched in that mindset, it's just not worth arguing.

Now that you're here, you can enjoy the like-mindedness of us Mustachians and laugh at people like that.  :)
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Jamesqf

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Re: Sorry guys but we're doing it all wrong.
« Reply #2 on: April 20, 2013, 08:47:13 PM »
I guess we live in different worlds.  Sure, rewarding yourself for achievements is a good thing.  The puzzle is why spending money going to a restaurant must be seen as a reward.  I mean if that's what you really enjoy, sure, enjoy the heck out of it.  But if you'd rather be doing something else, and only go to the expensive restaurant because you think it's a status thing...

Likewise spending $200 on beers with friends.  Sure, spending time with friends is great, but wouldn't you like them just as much (if not more) if they were sober?

arebelspy

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Re: Sorry guys but we're doing it all wrong.
« Reply #3 on: April 20, 2013, 09:52:00 PM »
Sure, spending time with friends is great, but wouldn't you like them just as much (if not more) if they were sober?

And if the answer to this is no.... yikes.

:D

YMMV.
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
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Nords

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Re: Sorry guys but we're doing it all wrong.
« Reply #4 on: April 21, 2013, 11:04:43 AM »
Calling all reddito-mustachians; face-punch needed ASAP at /r/personalfinance - suspect is smug and dangerous, I repeat suspect is smug and dangerous
You're being trolled.  He enjoys what he's doing, so let him work his lifestyle for as long as he wants to. 

His FICA contributions just might save both Social Security and Medicare for the rest of us...

chesebert

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Re: Sorry guys but we're doing it all wrong.
« Reply #5 on: April 22, 2013, 04:32:04 AM »
First half of that editorial is still good, but obvious stuff. The rest just went over my head.

dragoncar

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Re: Sorry guys but we're doing it all wrong.
« Reply #6 on: April 22, 2013, 11:18:53 AM »
I pretty much agree with his take-aways, although not his attitude or reasoning.  Of course I'm at the point where I make unmustachian choices reducing my savings rate from say 90% to 80%. 

I honestly think MMM would agree with some basic points.  If you get a large raise or bonus for example, spending 5% on something unmustachian (but that brings you a cost effective amount of happiness) is not out of line.  Basically the idea of conscious consumption.  Similarly, you can spend $200 on beers if thats where you prefer to spend money, and can meet your savings targets at that level by making your own soap at home. 

Jamesqf

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Re: Sorry guys but we're doing it all wrong.
« Reply #7 on: April 22, 2013, 12:18:48 PM »
...spending 5% on something unmustachian (but that brings you a cost effective amount of happiness) is not out of line.  Basically the idea of conscious consumption.

That's not really what I took away from the article.  Seemed like his reasoning wasn't "I spend money on expensive resturants because it makes me happy", but "You should spend money on expensive restaurants, and if it doesn't make you happy there's something wrong with you."