Lifestyle after retiring

[latebloomer36]

I just started the book, Millionaire Teacher, and he talks about living frugally and saving money. I’m wondering once these people retire early, are they still living like this? Do people who FIRE tend to not live very humbly afterwards?

[goodandbadjapan]

I think some people can take FIRE to extremes. Being frugal is fine but not using heat etc just seems to be taking it too far! Yes, don't use heat unnecessarily etc, but my view is wherever possible live comfortably. Personally, I have never skimped on heat or transport or not bought a book I wanted or a coffee I felt like having and I don't think in the grand scheme of things saving on those would have made a massive difference to my savings. I don't live beyond my means in that I don't buy things I can't afford, I don't feel the need to get a new car every few years or change my phone every year, but I basically buy what I want (which fortunately seems to be less and less as I get older!) It's a balance and while reaching FIRE is nice, I think it's important to remember to have a life while you're still on the journey. I wouldn't see the point in retiring early if all I had was enough money to eat and stare out of the window. And nor would I enjoy the route to FIRE if that's all I could do in the meantime.

[captainspoke]

... and bicycling (far) to work instead of spending money on gas. ...

IMO, driving to work is only a short distance from being a couch potato.

It doesn't have to be cycling, but a healthy amount of exercise will keep you fit and better able to enjoy eventual retirement (while it's your bank account that will get fat).

[JimNasium]

One nice thing in Japan is that a lot of companies pay for commuting to and from work. I was considering cycling to work but it doesn’t seem worth it when I can just relax on the train and pay the same (and cycling during rainy season suuuucks!)

[RetireJapan]

Retiring early in a state of financial independence is an extraordinary result that most people won't achieve and probably don't want to achieve.

It's not a very good goal either, as it is so big and difficult.

Much better to set smaller goals and increase them over time.

Start saving.
Save an emergency fund.
Start investing.
Invest more each month.

I started doing this about fifteen years ago and now my family is in a position of financial resilience. We don't really worry about money any more.

The big change for me spending-wise was thinking of my spending through various lenses:

-will this purchase make my life better, or bring me joy?
-how much is it really costing me? (opportunity cost: multiply the cost by 8x to see how much money you would have if you invested the amount for 30 years instead)
-can I eliminate or reduce a regular expense?

We've never skimped on food, and I spend whatever I like on books and coffee.

It's all about figuring out what makes you happy, and what kind of life you want. I decided having time/freedom is much more important to me than a new car, a big house, or expensive clothes.

[RetireJapan]

One nice thing in Japan is that a lot of companies pay for commuting to and from work. I was considering cycling to work but it doesn’t seem worth it when I can just relax on the train and pay the same (and cycling during rainy season suuuucks!)

I'm the opposite. You'd have to pay me a lot more money to get on a crowded train, even when it is raining

Decent gear and you can pretty much ignore the weather.

[goran]

I just started the book, Millionaire Teacher, and he talks about living frugally and saving money. Some things he mention were not using heat and bicycling (far) to work instead of spending money on gas. So I’m wondering once these people retire early, are they still living like this? Do people who FIRE tend to not live very humbly afterwards?

So, I might be an outlier here. We seldom use heating or AC at home. Last winter was the first time, we used heater on the air-conditioner. (This was because we took an early winter holiday in December to a warmer place, and could not adjust properly to Japan winter.)
We usually put on AC for may be less than 2-3 weeks of summer, intermittently. We use fans, though.
My wife is more stingy about this than me. So we are perfect that way.

My work is about 4 km from my home. I walk around 50 mins, one-way, as much as possible. Not walking with raincoats or umbrellas, and not walking on super hot summer August days. And yeah, I get commuter train pass from work, so makes a few thousand yen savings as well while keeping me healthy.

But I totally agree that not everyone should live like this and nobody should compromise on things that negatively impacts their happiness.

[latebloomer36]

I’m sorry, I couldn’t remember his exact examples but it was quite far and that’s not really what I meant…I am fine with walking or bicycling! I meant do people “gaman” until they retire early and then suddenly live it up or do they continue to be very frugal and not splurge?

... and bicycling (far) to work instead of spending money on gas. ...

IMO, driving to work is only a short distance from being a couch potato.

It doesn't have to be cycling, but a healthy amount of exercise will keep you fit and better able to enjoy eventual retirement (while it's your bank account that will get fat).

[RetireJapan]

I’m sorry, I couldn’t remember his exact examples but it was quite far and that’s not really what I meant…I am fine with walking or bicycling! I meant do people “gaman” until they retire early and then suddenly live it up or do they continue to be very frugal and not splurge?

I think by the time you have trained yourself to the point that you are able to save and invest your way to financial independence over decades those habits become core to who you are. There is very little chance that you will suddenly become very spendy.

In fact most people have the opposite problem, and find it difficult to spend money unnecessarily, even as they get richer and richer

[Gulliver]

I think by the time you have trained yourself to the point that you are able to save and invest your way to financial independence over decades those habits become core to who you are. There is very little chance that you will suddenly become very spendy.

This has not been the case for me since I retired. While I was working I simply didn’t have much time to spend money. Now that I have free time I am constantly looking for stuff to buy online or out spending money on food, travel, or the multitudes of other temptations in Tokyo. I find myself having to make a concerted effort to control my spending so my wife will have something left over when I die.