Coast Fire and balancing saving

[LivingAlmostLarge]

Ceejay writes a lot about NW and progressing to coast fire. And just using a really cool calculator about coast fire. https://walletburst.com/tools/coast-fire-calc/. It's something I've been contemplating a lot lately. Mostly because we are stuck. 4 years ago we were cruising along to a very easy fire. We took a detour and the path to FIRE or retirement in general is a bit murky for us. YMMV. And we start to coast fire. I didn't have a word for it, but we just were forced into the situation because we chose to take it. But we were basically coasting. We had no direct plan or budget for saving.

I came here and you guys were very awesome by the way. For the first time in our adult lives we were not maxing out our savings, we weren't saving like 50%, we were forced to ease up on the pedal. It just happened. We didn't have a 401k it seemed, we only had 2 IRA and 2 ESA. We could save more but we couldn't cut our lifestyle that drastically to saving 50% because we wouldn't be able to pay our bills literally. We were not making enough to save at the same rate. It really stressed me out. But the board said forget it. I had saved responsibly for 15+ years. We only had our mortgage. We had set aside close to enough for the kids college. We were I think I calculated at coast fire number with IRAs annually. We could do it. But I had to wrap my head around that mindset. That it was okay to save the minimum and just let it ride.

Now 4 years later, we have a chance to save more again, but during these four years we had instead the opportunity to both have 401ks and we took it. So without trying we just ramped up the savings $45k/year into 401ks, 2 iras, and 2 esa and some into 529. And i've been comfortable because we were back above 30%. But now we have a chance to save more.

And it's interesting because I'm back here unsure if I want too now. I've kinda gotten used to the new me. I sort of like the relaxing feeling I have enough where I spend money and don't worry about it. Where I know we are doing okay saving the most into tax deferred accounts and I set aside sink/slush funds, and we enjoy the rest. I naturally save a bit because that's how we live, but I have a chance again to be like let's redirect $1k/month to savings.

Currently i'm about to spend $40k this month on stuff (New roof and 2 braces). And what do you know? DH got a $45k bonus. It's like magic. You are responsible with money and money appears. Good steward and it will be provided. But seriously I was just going to tap into our savings and not worry about it. Instead I had this miraculously expensive month just get covered. I mean I should save it, but does it really matter if i save it to pull it out monthly?

I guess the interesting question is I am trying to figure out what to do with DH's raise. Are we going to stick to the budget and save more? Or do we just see how it goes spendingwise? Do I want more? Yes and no. I waver between should we rent a bigger house. I am pondering if I want another car? Do I finally want a newer car for me? I am done with the minivan, but we'll keep it and maybe I get a better car? I don't know.

I like our life a lot. There is very little I would change. The extra money will help with all the extra kid expenses that are cropping up. All these camps and activities that cost so much more they are participating in now that the kiddos are older. Traveling to see colleges. Just little things that add up.

I'm not sure I can stop saving, but I do feel I crossed over 4 years ago the line of worrying about my spending. The question now is do I continue? This is likely a chance for us to be more measured and enjoy life. We are enjoying life. We go away now for the weekend and I don't sweat the cost. I feel okay booking the dog in boarding. I feel okay buying groceries I want to eat and not only looking at sales. I buy more organic. I buy clothes for the kids more freely than just goodwill or the thrift shop. I still do but now i'm like we can buy shoes at target or a regular store and not goodwill. It's too time consuming than looking for deals.

How did you cross over? Or did you never? How do you balance your spending?

[Tabs]

Just wanted to say congrats and am happy for you that things are going well, despite a monthly expenses that would have panicked most average households.

Also, just for fun, I ran my numbers through your link, and it confirms what I've already been doing since last year, which is coast-firing.... I still feel the need to keep saving more, but it's nice to get that confirmation though.

[ua_guy]

OP, sounds like you've hit a great stride.

From my own journey, I can't ever recommend to ever stop saving. Always save money, that's one of my core principles. Even if you're in a spending and enjoyment phase, still save some!

You've hit a point where your financial questions transition from what "should" you do, and what do you "need" to do, to, what do you want to do?

If you want a different car or a bigger house, as long as you aren't compromising your underlying financial goals and trajectory, why not? I think that goes for everything. And it's possible to maintain sensibilities...An increase in income doesn't require an increase in lifestyle or expenses across the board, but it may enable you to do more things you want to do and enjoy.

[kork13]

I love this post of yours, LAL. I remember discussing that situation/decision a while back & your concerns ... But also very glad that you guys went for it in spite of the risks & uncertainty. I think what really makes the difference is intentionality. I'm pretty sure that you can make almost any situation work if you're careful & deliberate about how you approach the problem & everything that follows. That's definitely been my experience.

I've never heard of "coast FIRE", but it makes sense. We're definitely past that line ... actually just about past the line for straight-up FIRE. I think, as you highlight, that the tough part is letting go and actually starting to coast. Admittedly, I'm still not really coasting, even though I know we could. I'm still mostly in the bargain-hunter mindset. The only caveat is that when I can logically rationalize spending more than the minimum, or covering high dollar expenses, I can do that pretty easily. I guess my thought process is that if there's a good reason to spend money, do it. I just don't want to be mindlessly frivolous or wasteful with our money either. So that's why I still pay attention to unit cost while shopping, or seek out the best value when I'm looking at those high dollar purchases.