The Intersection of FIRE and Disney

[SouthFayetteFan]

Stupid question - when you talk numbers are you talking about just yourself or as a couple (if you’re part of a couple)?

I’m just talking about myself... my wife doesn’t have any money except for the small allowance I give her

KIDDING... For those who are married, I think most people in this group are looking at it as a couple. On r/financialindependence though there are stories of one spouse chasing FIRE and the other not interested. But it seems so odd to me to run separate finances in a marriage that I can’t even wrap my head around it.

 

[ski_mom]

I’m just talking about myself... my wife doesn’t have any money except for the small allowance I give her

KIDDING... For those who are married, I think most people in this group are looking at it as a couple. On r/financialindependence though there are stories of one spouse chasing FIRE and the other not interested. But it seems so odd to me to run separate finances in a marriage that I can’t even wrap my head around it.

I agree - since the day we've been married, we've had joint finances. DH and I both work, but our salaries have gone back and forth over the years as to who earns more. To us, doesn't matter at all and it's all thrown into the same pot. Now that we're getting closer to retirement though, it's kind of funny - he's 6 years older, so I always assumed he'd retire before me, but at this point, he really has no desire to do that. We both work for the same company, so I think it would be kind of fun to retire at the same time, but we'll decide for sure when the time is closer.

It's always confused me when people have separate finances. I'm not sure how you'd decide who pays for what, but I know everyone has their own way of doing things.

 

[hsmamato2]

so....still in reading info on what this is all about-thanks everyone for the encouragement to get right in there and learn! I'm curious (as a newb with this idea) how important is mortgage payoff in all of this?
Things I know right now-
1) our baseline spending each month,as I keep track weekly.
2) our baseline income,saving pattern etc.
3) we are debt free except our mortgage (sooo many Dave R listening years)
4) we have about 6 years left on mortgage,and amount is approx 54k. (3.25 rate)
5) I've been overpaying on purpose for months now,(recently learned I've been doing it wrong)
Is early mortgage payoff a factor after or before you look at what you've saved for retirement? (sorry if this is too basic, I literally am just starting my reading on this stuff) In my mind,I want that mortgage paid OFF. I feel like it's a hedge against problems like job loss etc.
I think DH and I are 'of a certain age' now that it's hardly early retirement we're thinking about ...I'm thinking about 'on time' retirement that can be done.... does that make sense?
I know there are different opinions on paying off mortgage vs investing but I feel like this big thing gone would be so nice for my peace of mind....

 

[Sleepy425]

We have everything combined also, and when we look at our retirement accounts we always just add them all together for one number. But when I play with retirement calculators so many don’t take into account a spouse so I started questioning myself.

 

[QueenIsabella]

so....still in reading info on what this is all about-thanks everyone for the encouragement to get right in there and learn! I'm curious (as a newb with this idea) how important is mortgage payoff in all of this?
Things I know right now-
1) our baseline spending each month,as I keep track weekly.
2) our baseline income,saving pattern etc.
3) we are debt free except our mortgage (sooo many Dave R listening years)
4) we have about 6 years left on mortgage,and amount is approx 54k. (3.25 rate)
5) I've been overpaying on purpose for months now,(recently learned I've been doing it wrong)
Is early mortgage payoff a factor after or before you look at what you've saved for retirement? (sorry if this is too basic, I literally am just starting my reading on this stuff) In my mind,I want that mortgage paid OFF. I feel like it's a hedge against problems like job loss etc.
I think DH and I are 'of a certain age' now that it's hardly early retirement we're thinking about ...I'm thinking about 'on time' retirement that can be done.... does that make sense?
I know there are different opinions on paying off mortgage vs investing but I feel like this big thing gone would be so nice for my peace of mind....

Here are my thoughts, worth what you paid for them...

Our plan is to have the mortgage paid off by the time DH retires. It could be the week before, I don't care, I just don't want to have a mortgage when he's retired. Right now, we have the assets that we could pay it off tomorrow, but (a) we have a low interest rate, and (b) selling off assets would trigger taxes--how much would depend on which pot we took from (IRAs, stocks, etc.). I just figure, when we're in retirement, I want our required cash flow to be lower--it gives us more flexibility if we have a bad year or something.

This is one of those "great debate" questions--there really isn't a right answer.

 

[Starport Seven-Five]

Stupid question - when you talk numbers are you talking about just yourself or as a couple (if you’re part of a couple)?

We calculate it as a couple (both net worth and expenses).

This isn't a hard rule though. If plans involved 1 spouse retiring while 1 continues to work you could separate it.

I agree - since the day we've been married, we've had joint finances. DH and I both work, but our salaries have gone back and forth over the years as to who earns more. To us, doesn't matter at all and it's all thrown into the same pot. Now that we're getting closer to retirement though, it's kind of funny - he's 6 years older, so I always assumed he'd retire before me, but at this point, he really has no desire to do that. We both work for the same company, so I think it would be kind of fun to retire at the same time, but we'll decide for sure when the time is closer.

It's always confused me when people have separate finances. I'm not sure how you'd decide who pays for what, but I know everyone has their own way of doing things.

We have a hybrid approach to this. Joint savings/checking accounts for paying household bills/investments/vacations and our own personal accounts for expenses that are at our own discretion. Joint accounts are contributed at a percentage of our income to the household income (if I make 70k and the household income is 100k, I pay 70% of the household bills).

We started whit this system while dating and kept it in marriage because it allows each of us to prioritize how we want to spend our personal funds without needing to get "approval" or feeling guilty about it. Realistically, we're on the same page and could combine at this point but it's already set up and works so no reason to upset the apple cart.

I also have a bit of bias as I saw some quite unhealthy behaviors around combined finances growing up. For example, I had an aunt/uncle who seemed to be in a race to see who could spend the money quicker when the check hit the account.

 

[NotGrumpyButPrettyClose]

so....still in reading info on what this is all about-thanks everyone for the encouragement to get right in there and learn! I'm curious (as a newb with this idea) how important is mortgage payoff in all of this?
Things I know right now-
1) our baseline spending each month,as I keep track weekly.
2) our baseline income,saving pattern etc.
3) we are debt free except our mortgage (sooo many Dave R listening years)
4) we have about 6 years left on mortgage,and amount is approx 54k. (3.25 rate)
5) I've been overpaying on purpose for months now,(recently learned I've been doing it wrong)
Is early mortgage payoff a factor after or before you look at what you've saved for retirement? (sorry if this is too basic, I literally am just starting my reading on this stuff) In my mind,I want that mortgage paid OFF. I feel like it's a hedge against problems like job loss etc.
I think DH and I are 'of a certain age' now that it's hardly early retirement we're thinking about ...I'm thinking about 'on time' retirement that can be done.... does that make sense?
I know there are different opinions on paying off mortgage vs investing but I feel like this big thing gone would be so nice for my peace of mind....

Here are my thoughts, worth what you paid for them...

Our plan is to have the mortgage paid off by the time DH retires. It could be the week before, I don't care, I just don't want to have a mortgage when he's retired. Right now, we have the assets that we could pay it off tomorrow, but (a) we have a low interest rate, and (b) selling off assets would trigger taxes--how much would depend on which pot we took from (IRAs, stocks, etc.). I just figure, when we're in retirement, I want our required cash flow to be lower--it gives us more flexibility if we have a bad year or something.

This is one of those "great debate" questions--there really isn't a right answer.

At one point, I built a very big spreadsheet to help me decide because there were so many factors and variables. Taxes were a moving target - I had to have my tax return software open to look at tax estimates for the next year. In the end, for my situation, the balances looked much better five years out by continuing to make mortgage payments. For me, the mortgage interest savings could never overcome the tax credits, taxes and loss of potential investment income. Knowing this helped me to feel better about it.

 

[NotGrumpyButPrettyClose]

I love this chart as it shows how things escalate quickly:
View attachment 531085

Charts like this one are what helped me, over time, to change my mind about my daily spending habits and large spending decisions. "Those who understand compound interest earn it. Those who don't pay it." I can't remember where I saw the quote...

 

[Rob Huff]

We calculate it as a couple (both net worth and expenses).

This isn't a hard rule though. If plans involved 1 spouse retiring while 1 continues to work you could separate it.


We have a hybrid approach to this. Joint savings/checking accounts for paying household bills/investments/vacations and our own personal accounts for expenses that are at our own discretion. Joint accounts are contributed at a percentage of our income to the household income (if I make 70k and the household income is 100k, I pay 70% of the household bills).

We started whit this system while dating and kept it in marriage because it allows each of us to prioritize how we want to spend our personal funds without needing to get "approval" or feeling guilty about it. Realistically, we're on the same page and could combine at this point but it's already set up and works so no reason to upset the apple cart.

I also have a bit of bias as I saw some quite unhealthy behaviors around combined finances growing up. For example, I had an aunt/uncle who seemed to be in a race to see who could spend the money quicker when the check hit the account.

I'm fervently in the "everything is shared" camp, but I appreciate your comment about the unhealthy behaviors at the bottom of your post. Most of us who so staunchly share finances have similar or even identical core habits to those of our spouse. Without that, sharing finances would be seriously stressful!

 

[beck02]

I always calculated my net worth when I was married by just my numbers... they call it an IRA not MRA (for Married), LOL. It was just easier, as I had all my account info & took about 5 minutes to update #'s every month. Since it was just to show progress for me it didn't really matter, just as long as I was consistent. I started tracking numbers because all of the pie in the sky estimates of if you save X amount you'll have Y amount in Z years!!! I liked the chart that someone posted earlier, but it took forever for me to get to some of those milestones, and I saved more than the $10K /year w/company matching etc.

 

[beck02]

4) we have about 6 years left on mortgage,and amount is approx 54k. (3.25 rate)

Honestly, at 6 years left, you're paying mostly principle at this point. You can see how your mortgage breaks down every month, but I'd imagine the interest part of it isn't all that much. That's all you'd be "saving" if you paid off your house early. At 3.25 interest rate, I'd suggest just paying the monthly plus maybe a bit extra, and investing and/or saving the rest. My mortgage very similar to yours (3.5%interest, owe about $48K, and about 8 years left), and stacks up to $945 toward principle, and $133 towards interest, and the rest for escrow.

If you really feel strongly about it though, go ahead & pay it off. Nothing can beat that feeling of being debt free.

 

[tzolkin]

Is early mortgage payoff a factor after or before you look at what you've saved for retirement? (sorry if this is too basic, I literally am just starting my reading on this stuff) In my mind,I want that mortgage paid OFF. I feel like it's a hedge against problems like job loss etc.

I know there are different opinions on paying off mortgage vs investing but I feel like this big thing gone would be so nice for my peace of mind....

This one is really about your personal preference.

From a math/numbers perspective it's probably best to invest, but that does not mean that's the best decision for your peace of mind.

We downsized last year and only have a very small mortgage (15yr, $41k left). We are age 39 & 40. We are paying extra on the mortgage with the goal of having it paid off in 4 years. We recognize that our money would earn more if we invested that extra few thousand dollars a year, but paying off the house accomplishes some personal goals.

1. Our house will be paid off when our youngest graduates from high school.
2. My husband is planning to leave his job for something with more flexibility where we can travel several months out of the year. Having no mortgage brings our house down to very minimal monthly expenses so it won't be a financial strain if it sits empty. And with lower expenses, we will have the freedom to work at jobs that pay less than what we are currently making.

I also have a bit of bias as I saw some quite unhealthy behaviors around combined finances growing up. For example, I had an aunt/uncle who seemed to be in a race to see who could spend the money quicker when the check hit the account.

This makes sense. My spouse and I have always been on the same page about every financial decision we have ever made. We have very similar personalities and are both extremely practical/frugal. Finances have been combined really since before we even got married (we bought our first home that needed to be renovated while we were still in college) and we have never had a disagreement about spending.

I am certain that if either of us were married to different people with different spending habits or ideas about money, it would cause a lot of marital problems to share finances.

 

[Starport Seven-Five]

This is admittedly a very "first world problem" but I'm curious how everyone here goes about spending money on luxuries that are in budget? We have a frugal mindset by nature and find it very hard to spend money on things that we can do much cheaper despite it being completely in budget (our "vacation" fund is overflowing right now which is causing this discussion).

Example: We're planning a trip to Hawaii and looking at staying at Aulani for a portion of it. Renting DVC points, it would be between $850-$1000 for 3 nights. We are staying the first 5 nights in a Courtyard Marriott that would be 1/2 of that for those dates so a voice in the back of my head keeps pushing me that direction despite the list of reasons why we should stay at Aulani.
Example 2: We had no problem spending extra on a RC cruise on Oasis of the Seas because we wanted to experience a larger ship. The extra $600 to go from an oceanview to a balcony though? No way. This one worked out as we actually got upgraded to a balcony for free but that was 90% luck/10% persistence.

We have a budgeted amount for annual travel but we just can't bring myself to "blow it" even in scenarios where we should splurge. We're toying with the idea of assigning an amount to spend for each trip just to force us to spend more but curious if anyone else has ideas?

To put numbers around it: We budget 3k annually for travel and our vacation fund is sitting at $3804 today. That doesn't sound like a ton of money to some but it's just 2 of us and we travel hack pretty hard. Our round trip flights to Hawaii are going to be on miles and the hotel could have been as well if the redemption wasn't awful ($0.003/point).

 

[QueenIsabella]

Starport Seven Five--I'm familiar with your problem. I have less problem with travel, because (a) we have a nice budget for it, and (b) it was a priority of my MIL's. Our current travel budget includes all 6 of us, and we use the RMDs from the inherited IRAs (from MIL) to fund it. I consider it a gift from MIL to my children--in life, she was very generous with travel for them, and now that she's passed, she continues to be. I hope that makes sense.

Now, we re-did our kitchen a couple years ago. DH and I agreed we would NOT cheap out--the kitchen is truly the hub of our home, the kids like to cook, we rarely eat out, etc. We would have kicked ourselves if we bought cheap appliances or skimped on the countertop. I had to be very aware of getting what I really wanted, versus the cheapest thing. I wouldn't say it was difficult, but I had to be MINDFUL. That didn't mean we got the most expensive everything, but we got, say, the range with the features we wanted, the countertops we wanted, a dishwasher so quiet, we forget it's on.

We continue to be cheap in most other areas--we still shop thrift stores and sales, I use coupons, I don't spend on fashion or jewelry or fancy ingredients (usually). And we don't regret a penny of what we spent on the kitchen renovation, because we really use the nice appliances and sturdy countertop.

 

[bernina]

dishwasher so quiet, we forget it's on.

Info on this magical dishwasher please!

 

[Allison270]

Hello!

We’re relatively new to the FI Community and new DVC owners as well. We set a goal of paying off our consumer debt (everything but the house) and agreed to purchase a DVC contract after we’d paid off those debts and had the cash saved up.

With 5 kids, travel and Disney were at the top of our priorities for our “fun” money.

We started in January 2020, paid off the debts by August and closed on our AKV contracts in September and October.

In 2021, we’re looking forward to savinginvesting and getting all of our finances automated.

I’m also excited to read the rest of this thread for some great tips/advice!

 

[tzolkin]

This is admittedly a very "first world problem" but I'm curious how everyone here goes about spending money on luxuries that are in budget? We have a frugal mindset by nature and find it very hard to spend money on things that we can do much cheaper despite it being completely in budget (our "vacation" fund is overflowing right now which is causing this discussion).

We have the same "problem". There are certain purchases that we feel comfortable and don't hesitate on the splurge, but those tend to be items that we recognize that we will enjoy the value of the price difference. These are two recent examples I can think of:
1. Kitchen counters-- these were a necessary item but could have done way cheaper. We decided it was worth the extra money for the amount of enjoyment we were going to get out of having the recycled glass counters that we really wanted.
2. Tiki Brutalist Credenza-- we have been slowly furnishing our downsized house, but this was really not a necessary piece of furniture. It was an impulsive "saw it online, loved it, and drove to buy it the same day" type of purchase. We are into vintage tiki and I have never seen my husband so excited over any item in our 20+ years so I felt it was worth the money.

That said, on vacations, it tends to be difficult for us to spend extra money like you describe. During our last few trips to Disney, I even set myself a ridiculously high food "budget" to try to trick myself into eating/drinking whatever we wanted whenever we wanted without thinking about the price. We did get a few more alcoholic drinks and snacks, but overall we really couldn't get ourselves to really splurge on dining even though we knew we had plenty of money allocated for that purpose.

 

[QueenIsabella]

Info on this magical dishwasher please!

It's a Bosch SilencePlus 44dBA. It shines a red light on the floor to let you know it's on, and we STILL open the door by accident about once a month! DH picked it out--it wasn't the cheapest choice (I'm thinking ~$700?), but he liked the features (adjustable shelves, etc.), in addition to the quietness. It does a great job of cleaning the dishes, too.

 

[mgarbowski]

It's a Bosch SilencePlus 44dBA. It shines a red light on the floor to let you know it's on, and we STILL open the door by accident about once a month! DH picked it out--it wasn't the cheapest choice (I'm thinking ~$700?), but he liked the features (adjustable shelves, etc.), in addition to the quietness. It does a great job of cleaning the dishes, too.

I'm not at home and can't check the model, but I will second the recommendation of Bosch dishwshers for quietness. We have the same red light, and it is almost impossible to tell it is on without checking the light. Bosch also does rather helpfully list the dBA so you can easily compare models on this basis.

 

[AlohaNow]

We have a budgeted amount for annual travel but we just can't bring myself to "blow it" even in scenarios where we should splurge.

This is just my personal perspective, but the older I get the more I realize that you should really treat yourself to stuff like this when you are able. At this stage in life we have more $$$ for things than we did back when the kids were little. What is the point of 'the more $$$' unless you are able to enjoy it, once all your basics are covered?