Anyone trying to recover from lifestyle inflation?

[Bearded Man]

I'm moving from my third house back to my second house, which, although more than large enough for me and closer to everything I want (public transportation, stores, etc.), and very cheap to live in, was not in the best of neighborhoods. Then again, it wasn't the worst either. Just some low income people walking through, low income housing nearby, etc.

Although I didn't go out and buy a BMW or a diamond chain, Kanye style, I did experience some level of lifestyle inflation. To be fair though, I did buy the larger house in a better neighborhood (the one I live in now) in part due to the appreciation and depreciation potential. So it was only in part that I bought a nicer house as lifestyle inflation, but still.

I figure I have an alarm, cameras, and a small ankle biting dog. Maybe I shouldn't be so opposed to living in the mid end neighborhoods (C areas).

[Orvell]

If you're concerned about personal and property safety, call the police department and get a feel for things. :) I'm pretty sure they can give you a clue-in into what is actually going on in the neighborhood, and what you should actually be alert for in terms of crime/crime history.

Why are you moving back? Is it so you can rent out the 3rd house?

[norabird]

Well, I just posted on your other thread, seeing this one I hope my attitude wasn't too dismissive. But, I live in a C neighborhood, I guess; great transit and location, and lots of friendly people, but gang issues and pretty regular shootings. I never feel frightened or worried so I think a lot of it is what you are used to/expect. If you stayed in the lower income area long enough, you would probably adjust. Personally, my neighborhood is gentrifying quickly, and it makes me quite sad and somewhat guilty to think about how rapidly the current lower income residents will be pushed out. In the end it will probably be 'safer', but it will lose its character too.

[Bearded Man]

Moving out of the 3rd house in the ritzy neighborhood back into the 2nd house because we can have a homestead and neither of us is happy where we are at, but in reflection, we realized how much we liked the second house best overall. Plus it is central to public transportation. Also, I've realized after living in three houses now, that there is some kind of issue anywhere you go.

My first house was at the outer edge of a rough area of town, and I still saw violence and crime a few times in the 2.5 years I lived there. People doing drugs in the alley behind my house (new renter), neighbors door got kicked in and son dragged into driveway to be beaten nearly to death by a gang of thugs, two guys fighting with a bottle and machete in front of my house, etc.

Heck, the house itself had been broken into before I had bought it. The previous owner had shady friends apparently.

In any case, it's gentrifying there, and although I am not 100% certain I won't be a victim of a crime at the 2nd house, in three years of ownership, nothing bad so far. I figure with the alarm, cameras, dog, a safe, etc. I can deter most if not all of it.

[use2betrix]

As this thread was asking if anyone else is trying to recover from lifestyle inflation, yes, you aren't alone. I made a lot of poor purchases I'd never mention here. Fortunately I'm still in my 20's so recovering is doable. As sad as it is, if I try "really hard" right now, I "only" spend around $5800/mo. Fortunately I have a high income so even at $5800/mo spending I'm still saving over 50%. I plan on doing a case study in the next month or two and then a journal after that. Going to try and really buckle down a few more notches next year.

While I'm nowhere near the levels of many here, I've improved my position a ton over the last year. Saved around 50-60k. I'll get there eventually!

[Brilliantine]

Yes. I am (we are) trying to recover and somewhat failing.
...

I typed a lot. I wrote about all the ways I fall off the wagon. And then I read it. It was all a bunch of whiny crap. So I deleted it.

This is more a comment on your overall forum activity: I like all the threads that you have been starting. I sense a sort of urgency in you and I feel an affinity. I'd say, overall, you seem to be doing a good job. Stay the course, be strong, and all that good stuff. :)

Homesteading might turn out to be an expensive experiment. Let us know how that goes.

[Gimesalot]

Me!  I was super broke in college and then I got a good paying job and started spending like crazy!  I was still saving 20% to 30% but I was eating out every meal, buy tons of fancy clothes, shoes, etc., and wasting money.  In the end, I am finding it difficult to cut back, but MMM has helped by pushing me to realize what is truly important in my life. 

As for the bad neighborhood issue, my advice is, "stay out of it!"  "It" being the neighborhood chatter, goings on, drugs, gangs, violence, etc.  We live in what by any standards would be a terrible neighborhood.  Just Sunday night a park about 1/2 mile from our house became nationally known for a shootout.  This kind of thing happens all the time.  We just stay out of it and we have never had issues.  We do have some unsavory characters living on our block in a dilapidated house.  We have called the blight hotline and had an inspector come out.  We called animal welfare because they were abusing a dog.  We have called the police crime tip hotline, and more.  Every chance we get we report them and hope they will be forced to improve the house or sell.  FYI, we have no alarm, no dog, we don't even have a deadbolt on our door.  We just make sure that all of our neighbors know us and it works really well.

[Money Badger]

To Bearded Man, If you and any neighbors of house B feel relatively safe, then you are pretty much like MMMand just managing your cost of living.   Selling the big house sure seems smart timing before interest rates normalize and you get stretched across 3 places.

FWIW, I too inflated my lifestyle in our last move and I am eager to rightsize again as our kids head off to school.   Friends who did this Already tell me it was the best thing they ever did! 

[jprince7827]

Oh man, have I experienced lifestyle inflation!

But it's been weird. I started with a 3% savings rate, and as my income grew, I exceeded 50%. Then, what seemed to happen is every time I hit 60% after tax savings, I'd find a way to increase my lifestyle "because I need it" and drop back down around 50%.

Below 50% I feel like crap, but above 50% I feel like I'm overdoing it, and should enjoy my wealth a little. I'd say I'm half-mustachian, half-consumer clown. It's a constant battle. ;)

[hybrid]

Oh man, have I experienced lifestyle inflation!

But it's been weird. I started with a 3% savings rate, and as my income grew, I exceeded 50%. Then, what seemed to happen is every time I hit 60% after tax savings, I'd find a way to increase my lifestyle "because I need it" and drop back down around 50%.

Below 50% I feel like crap, but above 50% I feel like I'm overdoing it, and should enjoy my wealth a little. I'd say I'm half-mustachian, half-consumer clown. It's a constant battle. ;)

Welcome to my world. Ultimately, go with whatever works best for you. Mustachian habits do not have to be binary, all on or all off, decisions. After a few years of full bore Mustachianism I've slipped back a bit into something that feels more comfortable. We put away a decent amount of income, but my new job (with significantly better pay) involves long hours so I splurge a little here and there to avoid burnout. Just not on fancy cars or fancy houses or fancy vacations. Tickets to the ball game. A round of golf. That sort of thing.

[big_slacker]

Yes, certainly. Went from snowboard bum to 6 figure income in a relatively short amount of time. Went a little crazy and got sucked into a somewhat excessive standard of living. Dialing it back now, both I and my wife. Tougher for her as she doesn't have to work for the $$ like I do.

2 cars, but they're both paid off and I'm biking to work often. Got the crazy organic hippy grocery bill cut down. Got the 'misc' column down as well. Got the savings rate up to 50%.

Housing is next but that's more long term. We're looking at getting out of a 2k sq ft house we're renting for $2200, into likely a 1200-1500 sq ft. townhouse with a mortgage a little lower than that. That will not only save a few $$ but will also cut down on the amount of STUFF in our lives and limit it quite a bit.

In terms of the original Q, lower income doesn't mean a bad neighborhood. Shootings, drugs and other crimes do. I would not want to live somewhere like that but just lower income who cares? Often you get more of a real neighborhood in places like that than in places populated by yuppies.

[RetiredAt63]

And for household thefts, high income areas where almost all households have both adults working are great targets for house break-ins - no-one is home during the day.  Easy in-and-out with a car.  Been there, house broken into, on the day the dog was with me, in a high-end residential treed area with large (acre plus) lots.

[big_slacker]

And for household thefts, high income areas where almost all households have both adults working are great targets for house break-ins - no-one is home during the day.  Easy in-and-out with a car.  Been there, house broken into, on the day the dog was with me, in a high-end residential treed area with large (acre plus) lots.

I live in such a neighborhood and this is 100% on target. We had our house cased because I was at work and my wife had her car parked in the garage. Guys backed into our driveway and knocked on the door with some BS excuse about needing directions to the freeway. (No smartphones? Really?) Had my wife not been there we'd have come back to missing stuff. A friend of mine less than a mile away had his place broken into twice in 2 years. Carport, easy to see if he was home or not. Kicked his dog too, pretty shitty.

I wouldn't say it's a reason to not live in a nice neighborhood but it's something to be aware of. A couple cams and a sign saying you're being recorded goes a long way.

[Bearded Man]

Yes. I am (we are) trying to recover and somewhat failing.
...

I typed a lot. I wrote about all the ways I fall off the wagon. And then I read it. It was all a bunch of whiny crap. So I deleted it.

This is more a comment on your overall forum activity: I like all the threads that you have been starting. I sense a sort of urgency in you and I feel an affinity. I'd say, overall, you seem to be doing a good job. Stay the course, be strong, and all that good stuff. :)

Homesteading might turn out to be an expensive experiment. Let us know how that goes.

Thanks for the kind words. I did a homestead experiment at my second house and it worked out well. We likely won't be doing rabbits this time (too much cost and effort), just chickens, and a larger garden. We might get a goat, or a pig, which are also legal (can only have one animal of that size though). Leaning toward the goat since it produces milk which can make cheese, butter, etc.

Also plan on harvesting rain water and getting into some solar and wind power.