Is it really about not spending the money you make?

[Ryan Pozzi]

Hey BP!  I'm still quite new around here so I know I'm risking outing myself as someone who "doesn't get it yet" by asking this, but I've been consuming everything I can to try to educate myself - podcasts, books, forum conversations.  (I have yet to get out to a local meet-up, but  I'll get there.)  I think of this as part of what it takes for a new investor like me to get up to speed.

One thing that keeps coming up - particularly as I read my way through some of the titles folks on the podcast identify as their favorite business books - is the idea of drastically minimizing expenses.  I guess the volume and frequency of the "you must live an exceptionally modest lifestyle" message has surprised me and I'm curious if you have tips for how to accomplish the spirit of what they're saying without drifting into self-deprivation.  Live below you means, sure, but some of this advice...I dunno.

Of course I get that living on $20,000 a year, for example, would provide a big boost to my wealth building but I've lived on that income before, as I'm sure many of us have, and I don't recall it being very pleasant.  I don't need to splash money all over the place, but what's the point of using real estate as a tool to build passive income and increase my long-term wealth if it doesn't also improve my standard of living as I go along?  Sure my retirement would be GREAT if I save 50% of my income, but...  What am I missing here, BP?

[Steve Vaughan]

I can see how just saving for retirement would not be a very big why.  The folks I know that 'do without' have a stronger reason than to have a big nest egg someday. 

We and others you have listened to I'm sure just prioritize things differently.  I've never been impressed by or been driven to purchase brand new cars or phones or clothes or exotic vacations, etc. I'd rather have freedom. Not yearning for things that drop in value has allowed me to not have had to clock in anywhere for 17 years.  

We still have wonderful experiences and fun.  My boys and I might play frisbee golf and go for a Costco hotdog afterward for a treat where others may do something costing far more than $8, but we don't feel we are doing without at all.  Another favorite we do is kids bowl free, a national thing.  I'll get a pass all summer for $20 to bowl 2 games a day if I want.  The kids are completely free.  Great memories can be built without large dollar signs.

I don't have to be very frugal anymore, but it's hard not to be. It's what we like and what we are used to. I now have a car that goes too fast and is too small to carry tools or kids.  Big whoop. Got it at a steal with no payments. If purchased years ago with payments when I was broke, it would have delayed my semi-retiement 10yrs. Our priorities are still in the correct order I think. 

It's up to you.  Would you rather pay retail for things that will be worth less (wothless) later? Or change how you define fun and important for freedom?  90+% of workers run on a wheel well into their 60s.  Be normal if you want to.