Today we continue the ESI Scale Interview series where people answer questions about their success at working the ESI Scale.
In short, the series focuses on what the interviewee is doing in the areas of earning, saving, and investing. They also get an opportunity to ask ESI Money readers for suggestions if they choose to do so.
Since the series is just getting started, I’m looking for feedback as well.
Specifically, I’d like to know what you think of the questions — which ones are good, which ones need changed, what should be added, etc. I’d like to get to a consistent list to ask everyone, so I’ll take your thoughts for a few of these posts and then settle down on a final list.
Please note that the questions need to be applicable to a wide a variety of people with very different situations. In other words, a question just for wealthy people won’t fly in this series.
If you’d like to be considered for an interview, drop me a note and we can chat about specifics.
With that said, let’s get started.
My questions are in bold italics and his responses follow in black.
OVERVIEW
Please tell us a bit about yourself.
I’m a 47 year old single male living in the San Francisco Bay Area (not SF proper). I’m gay, so no kids and none are in my future.
What is your current net worth?
I’m essentially a perma-renter so no home equity.
Approximate Net Worth Total $460,000:
- $360,000 Workplace retirement plan
- $75,000 Roth & Regular IRAs
- $17,000 Savings Bonds & Bond Mutual fund (in taxable account)
- $8000 Cash
How did you accumulate your net worth?
Mostly the boring way. By living well under my means with a modest salary in a high-cost area. I’ve done many of the typical things many motivated savers have done to accrue wealth on a modest income such as (in order of importance):
- Rented a room from age 26 to 35 before upgrading my housing. When I did finally get my own small apartment, I had a $100K net worth and got a studio, not a 1BR.
- Drove used, economy cars until the wheels fell off. Just over a year ago I bought a then 2-year-old used economy car for cash. Prior to that, I had another used economy car that I had bought when it was 4 years old. I kept it until it was over 20 years old and not worth fixing before I bought my current car.
- On that note, I have kept my transportation costs low for the last 9 years by living a block away from my job. I admit there was a bit of luck involved here. My previous apartment wouldn’t renew my lease because they were turning my complex into low income housing–and I didn’t qualify–so I had to move. I made the most of it by finding a place a block away from work. This wasn’t easy in the Bay Area’s perpetually tight housing market. I was fortunate that this happened in 2008, a few months before the economy totally tanked, so the housing market here wasn’t as tight as it is now. I also have a very merciful landlord who hasn’t raised the rent nearly as much as they could have. But I still pay much more than would be typical for a small apartment in an average cost metro area. This is one of those rare instances where I was able to kill 2 birds with one stone. Not having a commute saves a lot of money and improves my quality of life at the same time. I try to be grateful that I have such a good setup.
- Don’t have cable TV.
- Don’t have an expensive cell phone. Only got a smart phone about 1.5 years ago. My cell phone plan is $30 month.
- I do eat out, but typically twice a week, and I normally go to normal mid-range cafe type places.
- I typically only drink alcohol on special occasions and never order alcohol at bars/restaurants. I’m not into pot or other recreational drugs. Don’t gamble/rarely play the lottery. Don’t have any tattoos, either.
With the possible exception of renting a room for 8.5 years, not spending money on any of this stuff didn’t seem like a sacrifice to me.
A lot of the stuff people spend money on just seems like fluff and nonsense as far as I’m concerned. I really don’t see it making people happier. Just seems like it adds a lot of stress to their lives….which they compensate for with….more spending <sigh>.
However, I haven’t exactly led an ascetic lifestyle.
Being a room renter allowed me to take 3 different, awesome trips to Latin America. I’ve taken additional trips to Europe and Latin America since then. The key is to pick and choose what matters most to you. You can probably have anything you want…but you can’t have everything you want.
I’ve never made more than about $52,500 a year from my public sector job, so it wasn’t because I had an awesome salary. I do have generous parents who typically give me about $1200 a year for Christmas and my birthday, so I’m not doing it all on my own, but clearly, parental gifts comprise only a small portion of my net worth.
EARN
Tell us a bit about your career.
I work in a library for a major city in the Bay Area (not San Francisco). I’ve been there for 21 years. I had to move here from another metro area in California where I was stringing together several different part time library and bookstore jobs.
I am really not particularly ambitious. I have worked in various departments over the years, but always lateral moves. I’m not interested in getting promoted. Some would call me complacent, and they’d probably be right. But I work to live.
We had pay cuts about 6 years ago and only recently got back to our previous pay levels. Despite pension reforms and pay cuts (which also indirectly reduced future pension costs) my employer is putting an insane amount of money into the pension fund to reduce its unfunded liability, which is fairly substantial, so I don’t expect big pay growth in the future. Probably 3% raises at best.
Do you have a side hustle?
I used to do tutoring and gardening as side hustles in my 20s, but I don’t any more. I like my free time.
How happy are you with these results and what future plans do you have for growing your income?
I’m not really a great earner and never have been. I’ve just never had the motivation to earn a lot of money.
I’ve never seen a career that I thought was worth the effort. (For some reason, a lot of library people are this way–smart, and reasonably hard working, but not particularly focused or ambitious).
I see so many jobs out there that I think are just absolutely superfluous or that are made superfluous by bureaucracy and regulation.
Just as an example — I have a friend who’s a psychiatrist for the indigent mentally ill. He spends more than 80% of his time doing paperwork for the government and insurance companies. It’s not what he thought he be doing when he went to medical school. He hates his job. Such a waste on so many levels, in my opinion.
SAVE
What percent of your gross income do you save?
About 30%. I’ve saved between 1/4 and 1/3 of my gross income for about 15 years. For a few of those years, I probably saved more than 1/3 of my gross.
I’ve recently reduced my retirement savings to about 5% of my gross pay.
I plan on saving a minimal amount for the next year. I want to do more fun things in everyday life as well as give more to charity or go on a trip.
But I also want to save some cash so that I can be set up for a potential move. No definite plans yet, but I want more cash set aside in case an opportunity presents itself.
I half think World War 3 (or some other major meltdown) is going to happen in my lifetime and have thought so for quite a few years. I don’t think California’s going to be a good place to be if that happens. The fact that we’re also overdue for a major earthquake here makes me nervous, so I don’t think I’ll be in this area forever, so I want cash for some flexibility.
How did you get to this level?
I think I already outlined how I got here.
In summary, I lived a notch above the college student lifestyle until I was 35, which set me up well.
I still live pretty frugally. I also am lucky to have a landlord who doesn’t shake me down for every last dollar and parents who gift me some cash.
How happy are you with these results and what future plans do you have for saving more?
I’m happy with my savings rate. There’s always room for improvement, but not many people–even single people with no kids in cheaper areas–save the percentage I do.
INVEST
What are your main investments?
Almost everything I have is in stock and bond mutual funds, most of which are in retirement accounts.
I’m a bit of a mutual fund junkie. But I learned the hard way that most investment success is BORING. It’s about consistently investing in broadly diversified stock mutual funds.
You’ll get good results even with fairly crappy mutual funds if you save a double digit percentage of your income and just leave it alone without moving around from fund to fund.
My retirement portfolio looks like this (workplace 457b plan, plus IRAs):
- Parnassus Core Equity (PRBLX / PRILX): 44%
- Templeton Global Bond (TGBAX): 21%
- Dodge & Cox Global Stock (DODWX): 8%
- Oppenheimer Developing Markets (ODVYX): 8%
- VY Clarion Real Estate (IVRIX): 8%
- Janus Henderson Small Cap Value (JSCOX): 8%
- Stable Value: 3%
I know index funds are all the rage these days, but I am able to get the cheaper institutional share classes of several of these funds because they’re through my 457b deferred compensation plan at work, so the blended expense ratio for my retirement portfolio is about .71%. While I’d like that to be lower, I think it’s reasonable.
I like trying to beat the market. I plan on reducing my allocation to stock funds by 1% or 2% every year for the next 8 or 9 years.
I particularly like Parnassus Core Equity because it held up wonderfully in the 2008 market crash.
Outside my retirement funds I own:
- I-bonds: $7500
- Loomis Sayles Bond: $9500.
I love Loomis Sayles Bond, although I wish the expense ratio were lower. I plan on adding to this fund here and there and may cash it in when I’m ready to buy my next car in 10 years or so.
How happy are you with these results and what future plans do you have for investing?
I’m somewhat happy.
I try not to drive myself crazy thinking about how much more money I’d have if only I’d been more consistent.
I am a big believer in balanced mutual funds. If anyone has any of the following mutual funds in their 401k plans, I highly recommend just adding money to one of these funds and forgetting about it for at least a decade, if not longer:
- Vanguard Wellington
- T. Rowe Price Capital Apprec. (Closed to new accts., but a real gem if it’s already in your 401k)
- Dodge & Cox Balanced
- Oakmark Equity & Income
- Mairs & Power Balanced
- Fidelity Balanced
- Vanguard Balanced Index (not my favorite, but still a solid choice).
- Target Date Funds from Vanguard (not my favorite, but still good choices).
WRAP-UP
What money mistakes have you made that others can learn from?
My biggest investing screw up came in 2008. I thought I was smarter than I was. I bought bank stocks during the market crash only to see them fall further. I bought Washington Mutual and it went to $0. Overall, I lost $11,000 buying individual stocks 2007-2009.
I learned I am not cut out for it. Too much stress caused me to sell my remaining bank stocks at low prices. My investment personality is fairly conservative stock funds and fairly aggressive bond funds. That just seems to be what works for me.
I did a back of the envelope calculation several years ago and realized that if I had not moved money around from fund to fund or invested in individual stocks, and had instead just invested in a semi-boring balanced mutual fund like Vanguard Wellington, I’d probably have at least $50,000 more in net worth, and maybe even $100,000 more than I currently do.
Unfortunately, I don’t have any good balanced funds in my retirement plan, so about 6 years ago I picked my funds and set it up so they are automatically rebalanced every quarter. I wish I’d done something like that from day one!
I think the other area where I’m weak is in the whole networking thing, whether it be career-wise or personally.
While I get along well with people, I’m an introvert and just find all of that stuff very draining. I have to constantly push myself outside my comfort zone when it comes to socializing and whatnot.
Are there any questions you have for ESI Money readers regarding any parts of your finances?
Does anyone know a frugal gay man around my age in the Bay Area? It’s really hard to meet other frugal people, especially when you’re not big into socializing in unfamiliar situations in the first place! I know this isn’t a dating service but frugal introverts have a lot of trouble finding each other. It’s a double whammy if you’re gay, since the pool of available people is just that much smaller.
I don’t have any specific questions, but any feedback people want to give or questions/clarifications they may have are welcome!
Lily | The Frugal Gene says
Aha I was just about to ask how’s the dating scene around the Bay.
I very much admire you’re looking for someone frugal and isn’t afraid of being single. That is definitely important. I don’t want anyone who doesn’t see eye to eye with me, or worst…! Someone eyeing the money more than they’re eyeing me as a person.
Mysticaltyger says
Hi it’s Interviewee #3 here.
Ha! Yeah, I’m not afraid of being single. That cuts both ways. It means I’m not willing to do stupid things just to be in a relationship, but it also means perhaps I’m a little too inflexible.
The Physician Philosopher says
I am sorry that I don’t know anyone for you to meet up with as I live on the other side of the country! Did visit San Fran for a conference last year, and it is beautiful.
I think you’ve done a wonderful job saving, particularly given your income level in a high cost of living area. It’s truly strong work.
I would caution you to look into index funds. Morningstar is a great tool to compare how your funds have done against the index fund. You mentioned your main mutual fund (Parnassus) has been performing well since 2008, but it still has not beaten the market (returns below S&P 500 and Vanguard 500 funds) and you are paying higher fees. This is where you can find the information on morningstar (http://performance.morningstar.com/fund/performance-return.action?t=PRBLX®ion=usa&culture=en-US).
Just food for thought.
Mysticaltyger says
Besides being insanely expensive, SF is beautiful but it’s a pain in the butt for day to day living. Public transportation isn’t up to par for such a densely populated city. Same is true for the larger Bay Area.
PRBLX has beaten the S&P 500 over the last 10 and 15 year periods. It hasn’t done as well in more recent periods, but that’s typical for this fund. I was hating this fund in the runup to 2008, but I held on. Then 2008 happened and I fell in love with this fund. Call me crazy, but I’m sticking with it. I also have most of my assets in the institutional share class of the fund which I get through work (PRILX), which charges .70% including the admin fee they tack on. I know a .70% ER is still anathema to index fund purists. So be it.
The Physician Philosopher says
Hey, as I always say, as long as you are making an intentional decision (with good information) that makes your head and your heart happy, I am all about it.
At least you know the passive index-investing idea is out there and have made a decision about it! Keep on fighting the good fight, my friend!
Mysticaltyger says
Yes, it was definitely a conscious decision. Believe me, I do question my decision to own this fund and I wish it was cheaper. But it’s a fairly conservative stock fund that normally trails the market in good times. In market corrections and bear markets, it holds up a lot better. The research also shows the biggest problem investors have is switching from fund to fund at inopportune times. It turns out that most people are pretty good at picking lower cost, better performing funds (whether they be active or passive). The bigger problem they have is they move things around when they should leave well enough alone. So that’s my long winded way of saying I’m stocking with it for now.
Thanks for the words of encouragement!
Sean @ Frugal Money Man says
I am definitely a fellow “boring” investor!
My fiancée and I (24 & 25 years old) have a combined $22,000 in our Roth IRA’s and ALL the money is invested in the Vanguard Total Stock Market Index Admiral Fund. Additionally within my 401(k), 40% of my holdings are in the Vanguard Inst Index Fund (S&P 500 Index Fund). We keep it as simple as possible because we understand that “boring” and average alone will grow our money into multi-millions in the future. No point in trying to beat the market when obtaining the markets return alone will get you towards financial independence!
Kristy says
Wow! To be 24 & 25, and have that kind of future insight & that amount already in your Roths – fantastic!
Jeff B says
Awesome!
Mysticaltyger says
Yes, that’s awesome that you’ve got that much put away already. I didn’t start putting anything away until I was 26.
Mike at Balanced Dividends says
Thanks for sharing. Agreed with some of the prior comments – the cost of living in the SF is quite high, and your respective progress is quite good.
I’m also a blended investor in terms of index vs. active funds. The majority of our net worth is primarily in index funds or active funds, but with relatively low costs.
Using your referenced blended expense ratio of .71% for your retirement accounts (~ $435k if I read correctly, composed of IRAs and workplace plan), you’re paying around $3k a year in fees (give or take). While certainly not the highest, there might be some lower cost alternatives for at least some of the funds you’re invested in.
On your money mistakes, I hear you. They’re definitely lessons learned, and I’ve made my fair share of mistakes as well.
Thanks again for sharing. – Mike
Mysticaltyger says
Well, there really aren’t lower cost options. Retirement plans offer what they offer. We do have the cheapest share classes of the funds in our plan in most, but not all, cases.Yes, sometimes you can get them to fight for the cheapest share class. I think our committee does a pretty good job of that, but we may not have the asset base for the absolute cheapest asset classes.
Mike at Balanced Dividends says
Absolutely fair points. Overall, the plan seems to have a good line-up of options.
Thanks again. -Mike
Mysticaltyger says
Yes, we also have institutional share classes of Vanguard index and target date funds as well (as well as an active fund–Vanguard Equity Income), but they do tack on an annoying admin fee of .12 to .21%, depending on the fund.
It’s not quite a great plan, but it is a good plan.
Donna says
Thank you for sharing your story. You appear to be on track for a good retirement. By the way, I am a financially frugal lesbian in Atlanta who also cannot find a financially savvy/frugal woman to date. Unfortunately, that problem seems to be everywhere. Nevertheless, keep saving as that is the surest way to a secure retirement.
Mysticaltyger says
I share your pain, Donna!
I think some of us frugal people have to admit that maybe we need to loosen up our standards a little if we want a partner. Not to say we go the opposite extreme. But we have to understand we’re the oddballs and have to honestly assess what’s more important to us. If you can honestly say you’re not willing to compromise one iota, then that’s fine–as long as you’re willing to live with the result.
Mysticaltyger says
Oh, and yes. I do think I’m on a good track for retirement. I also qualify for a pension at 55. I try to save as if I won’t be getting one. The pension and my investments should set me up for a better lifestyle in retirement than I have now if I wait until 55 or 56 to retire. But as I said, this year I am taking a break. With the tax cut and a little extra here and there, I’m already saving more than I planned.as is normal for me–haha. But my portfolio is reaching the point where the compounding is doing a lot of the heavy lifting.
Mikey says
Hey,
Us straight guys don’t have it easy either! I can’t find a financially responsible chick for the life if me! Hope you find one.
Mysticaltyger says
You have my sympathy. People spend everything they make regardless of sexual orientation.
Laurie@ThreeYear says
Thanks for being so honest about your “lack of ambition to earn more.” Our culture is so much about hustling, side jobs, go, go, go, more, more, more.
While I do think it’s important to grow your salary so that you’re earning enough, once you’ve reached that point, and are able to save a large chunk of it, I think it’s great to appreciate the life you have, and not always pine for more. Your story overflows with gratitude for the life you have (except maybe finding a similarly-minded partner!) and I love that. It’s really refreshing.
Mysticaltyger says
Ha! I’m glad you appreciate my honestly. I will say there are trade offs to being ambitious or lack thereof. I have been to Latin America where the emphasis is on family, friends, and fun. But that has its own pitfalls. It seems refreshing to me as a visitor on vacation, but living it every day is a different story. And let’s be honest–If I didn’t have a government job, I wouldn’t be able to afford the unambitious attitude.
I think the biggest thing I hate about the “go, go, go”–and it’s fraternal twin sibling, “more, more, more”–is they’re really not getting us anywhere. They’re not making the average person more prosperous. They’re not making people happier. They’re costing us a fortune in health care costs and in many other ways. Yet people simply do not see it. I understand a certain amount of “go, go, go” is unavoidable. But so much of the “more, more, more” is completely avoidable. Yet people don’t seem to get it.
I think my issue is what’s “enough” for me, isn’t enough for a lot of other people–at least not for the college educated crowd, so that puts me at a disadvantage in some ways. Plus, being an introvert isn’t a plus in terms of meeting people. But such is life. We all have challenges!
Dave says
You are doing well. It is amazing that you are able to save any money working as a public employee in the Bay Area. San Franciso is a lovely city. We went there for our honeymoon. I would love to visit there again.
Mysticaltyger says
Hi Dave,
Thanks!
As I said previously, it would be much harder for a young person with my income to replicate the lifestyle I have now. They would be struggling to afford even a studio apartment here. Even renting a room–which is what I did for 8.5 years–is much more expensive than when I moved here in the late 1990s (it was expensive then–even worse now).
That said, I see plenty of young people I work with living at home with mom and dad blowing money on stupid stuff.
The Bay Area is a fun place to visit, no doubt. But other than the awesome weather, living here is tough for most people. I have a pretty sweet setup, but if life starts getting too stressful–I’m outta here.
Bernz JP says
Looks like you’ve done your homework with regards to investing and diversification and saving 30% of your gross income year over year is great. Not sure if you like to travel, but at 47 years old, that maybe the perfect age to get started with traveling.
Mysticaltyger says
As I said I am a mutual fund junkie…probably done too much homework in that regard!
I have done my share of travel, mostly in my 20s and early 30s, but I have also done trips to Europe and Turkey in my 40s. Travel has a way of opening me up and getting me out of my ruts, so I do feel another trip coming on. That’s why I won’t be saving so much this year.
Elizabeth says
Check out crossculturalsolutions.org or similar organizations. I traveled with them on several week long volunteer trips when I was single to some amazing places I wouldn’t have felt comfortable going alone. Close living quarters forced quick friendships with folks from all walks of life as well. And the whole trip plus international airfare is tax deductible as a charitable contribution! (Maybe less relevant now with the higher standard deduction, but still a big plus.)
I mention this because these trips were a huge psychological reset for me every time. Working with some of the poorest people in the world – and seeing how normal and happy and similar to me they were – was a major perspective adjustment that I value tremendously.
Mysticaltyger says
Yes, thanks for the recommendation of crossculturalsolutions. I have heard of them. A good reminder.
Yes, I totally know what you mean about how normal and happy very poor people in other parts of the world are. Many of them have a sense of community that is sorely lacking in America.
Deryl says
I applaud your ability to save and maintain a frugal lifestyle! Now, to answer your question about dating…I’m a gay male as well, so I understand the struggle. My advice is to put yourself out there and be vulnerable to some degree. I had most success with dating apps, believe me there are diamonds in the rough, but you have to be patient. Dating can be expensive, so I’d suggest creating a “dating budget” which you can use for dates, movies, dinner, etc. You might change your mindset a bit as well: instead of dating with the intention of find a life long partner, just date to have fun and meet people. Lastly, I understand that you want to be with someone that is equally frugal, but this may weed out potentially great guys. Maybe you meet someone that has stumbled financially, but they’re actively working to improve their situation. There may be potential, but you’d never know because he doesn’t meet the frugal criteria. But, if you mesh well emotionally, socially, and physically, then go for it! Getting on the same page financially will be much easier if other aspects of the relationship are on point. Don’t give up, keep living, and loving life! Thanks for sharing your story.
Mysticaltyger says
Hi Deryl,
Thanks for the comments! I think you hit the nail on the head with the “put yourself out there and be vulnerable” advice. I know you are right. It’s just hard to do!
Just to be clear, I know it’s unrealistic to expect a partner to be as frugal as I am. I did have a boyfriend that I broke up with 3 years ago, but not over financial issues. He made more than I did–and liked spending–but he did know how to save money. I got him to open an IRA and had him put the money in T. Rowe Price Capital Appreciation. I talked to him a year ago and he said to me “Oh yes, I still put $6500 in that T. Rowe Price IRA every year”!
In any case, that’s part of the reason why I’m loosening up as far as spending goes this year. I had to admit to myself I was getting a little bored.
Thanks for the great advice!
JN says
I’m straight with two kids living in Texas. Somehow, this is the most relatable interview I’ve seen here to date. Especially this quote: “I’m not really a great earner and never have been. I’ve just never had the motivation to earn a lot of money.”
Thank you for your honesty! I could always make more working somewhere else, but I am happy with my free time. This is a luxury I can afford working for the government.
Mysticaltyger says
Ha! Thanks. I’m glad you could relate. Sometimes I think it’s these types of forums attract the high achievers, which is fine. But not all of us are that smart or that ambitious. The good news is, you can still be financially successful even if you’re not as driven. It’s not easy, and you will give things up…but then a high stress job isn’t easy either. And neither is living payday to payday. The key is to not live life in default mode. Make conscious decisions and own up to those decisions!
Kirk says
I love your philosophy (as well as your selection)on balanced funds. These are great for a risk-averse Investor and you truly can sit and forget with your investment in these, and sleep well at night at the same time.
Mysticaltyger says
Thanks! As I said previously, I realize my work to live philosophy on work has a downside. And I also mentioned it’s a luxury most people in the private sector don’t have. The key with the work to live philosophy is you can’t let it degenerate into a “barely getting by” philosophy. You have to save a significant portion of your income to compensate for the fact that you’re not ambitious. The problem a lot of people have is they’re neither ambitious, nor are they willing to live on much less than they earn. That’s antithetical to a low stress way of life, which has always been what I’ve wanted.
Yes, those balanced funds are tried and true stalwarts. Most of them have beaten the S&P 500 Stock index over the last 20 years, and the ones that didn’t came pretty close. They may not do as well over the next 20 years, but they do have a better “sleep at night” factor than a pure stock fund. And for index fund purists, Vanguard Wellington is almost as cheap as an index fund.
Chris @ Duke of Dollars says
Everyone makes mistakes – great job learning from your investing one and sharing it with us!
Mysticaltyger says
Thanks–and you’re welcome!
SMM says
Very refreshing to read. As you put it consistency and long-term is the way to investment success. It’s not something super-exciting as so many people may think. I admire all the frugal steps you have taken and I wish I took some of these earlier. Congrats on your continued success!
Mysticaltyger says
Thank you!
Mysticaltyger says
Oh, by the way…believe me…I wish I had taken many of my current steps earlier, too. When I was in my early 20s, I was aimless and unfocused and in a relationship with someone who is a great person but just a mess, financially speaking. Wish I’d left that relationship several years before I did. Wished I’d graduated from college faster and gotten a job sooner as well. But we all screw some things up. The screw ups don’t have to be fatal, though.
JayCeezy says
Fantastic. This was my takeaway line:
“A lot of the stuff people spend money on just seems like fluff and nonsense as far as I’m concerned. I really don’t see it making people happier. Just seems like it adds a lot of stress to their lives…
MysticalTyger, really like your patient approach, in all things. Have always enjoyed your comments, wisdom, and perspective. Continued success to you!
Mysticaltyger says
Thanks, Jay!
Ever since my 20s, I just could not understand why people would take on so much unnecessary stress in their lives. I think Mr. Money Mustache made a comment on his blog about how young people acquire cars, kids, pets, houses in rapid succession without really thinking any of it through. And that’s so true.
Mysticaltyger says
Thanks Everyone for all the comments, compliments, and advice! I really appreciate it! Feel free to keep ’em coming.
Jason says
Excellent job ESI3 keep it up. I have a very similar net worth, but you live in a little bit higher HCOL area.
Mysticaltyger says
Thanks! As I said, I’m taking a break from my high savings rate this year. But I’m already saving more than planned!
Canadiangal says
Love your story and honesty! My husband and I are not Managers or VPs so we don’t make the super big bucks either. However, we rent cheap and have been able to sock away 45% of our monthly income for the last few years. I know that if I continue on my career path I’ll likely be offered a promotion and other ones in the future, which will mean more money but more stress I’m really not looking forward to having in my life (my job is stressful enough as it is). So I appreciate how you feel in terms of your job and I can relate as well. Good job in terms of your financial path and I hope you’ll find your frugal match! 🙂
Mysticaltyger says
Thanks Canadiangal! I can relate to the stress thing. I hate stress and I think so much of the stress we have here in America, (and Canada, too, I assume) is self imposed.
If you can keep saving 45% of income, you won’t need the promotion! I was only able to save that much for a few years, but I really got sick of being a room renter in my 30s. I really did need a lifestyle upgrade from that. But that is the downside of a low stress life. You’re not going to earn as much–which means a lower consumption lifestyle. And in America, deliberately choosing a low consumption lifestyle makes you a weirdo, unfortunately.
Elizabeth says
It seems like you may be a prime candidate to benefit financially from a move to a lower cost of living area. Many earners in tech or finance are bound to expensive coastal cities, but you aren’t necessarily. I don’t know exactly what you do or how easily you could replace your income, but if you can earn the same amount, it will go a LOT further in smaller/cheaper cities like Phoenix, Dallas, Nashville, Chattanooga, Minneapolis, St Louis, Atlanta, etc. And in my experience, ironically, the larger school or city you live in, the harder it is to build connections and a sense of community. Of course you’d save even more in a smaller town, but the gay community is likely to be better in mid-size cities.
Mysticaltyger says
<>
Yes, that’s correct. I’m considering such a move. I could probably do it now if I wanted to. My investments already allow me to move somewhere like Thailand and live comfortable, but I’m not sure I’m interested in moving somewhere like that right now. I still have a pretty good setup where I am. If I do move, it will probably be to another inland Western state where the cost of living will be lower, but not at Thailand levels.
The other thing is that the Bay Are probably pays the best for library jobs of anywhere else in the country. I would only make 1/2 to 2/3 of what I make here if I moved to any other average or below average cost area. Since my situation is still pretty good, I keep socking away the cash and accumulating pension credits. I could probably move to a cheaper area but if my current situation is ok, I’m not going to rock the boat unless there’s a compelling personal reason to do so. But it feels good knowing that I COULD make such a move right now without ruining myself financially.
<>
Like I said, I work in a library. Library jobs are tough to get. I will also be honest and say I don’t think it would be easy to change fields and make a decent amount of money–certainly not right away. So that’s why I stay. My current situation isn’t bad enough to make me want to change–yet. But I think the day will come when I’m ready to make the move.
<>
Yes, I think you may be right about that. The downside of meeting people in large metro areas is you have the illusion that you have more choices than you actually have. People in big metro areas are busy working all the time. And are in busy, busy, busy mode all the time. Add in distance and traffic, and you don’t have as many choices as it seems.
SavvyFinancialLatina says
Great job on saving almost half a million dollars!!!
Mysticaltyger says
I’d be over half a million if I’d just put my money in one of those balanced funds I recommended and just left it alone!