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    • Not having a car (always living/renting in walking or biking distance of my work)
    • Moving in with my partner straight out of college so we could split expenses
    • Moving (with partner) to a low-cost-of-living city for the first 5 years after college
    • Putting most of my medium-term and long-term savings into low-expense-ratio, passively managed index funds starting in my early 20s
    • Buying almost exclusively second-hand clothes, furniture, and cookery
    • Borrowing all desired books (and many desired movies and TV shows) from the library
    • Only buying games when they are bundled or otherwise on steep discount years after release
    • Pirating any other media in which I'm interested if its distributors make it even remotely difficult for me to buy it at a reasonable price
    • Planning all dinners in advance every week before grocery shopping (leads to almost never eating at restaurants or ordering takeout, and almost no food waste because grocery list is based on actual meals)

    Now, if I had to choose the best financial move out of that list? Probably the index funds. Though not having to pay for a car (or car insurance, or car registration, or car repair and maintenance, or parking, or fuel) is a close second.

    • I'm contemplating moving even further towards the lifestyle you have but I struggle with balancing "live for today" vs "live for tomorrow". In some ways I think we live too much for today, we rarely wait more than a month or two with buying whatever we feel we "need". We go on vacation abroad every other year at least and do activities monthly that most other families in our neighborhood do maybe yearly or quarterly. Partly because we have much higher income than our neighbors but we could of course save more and if we really buckled down we could likely by financially independent in less than 20 years.

      How do you balance and how do you think regarding these matters, what's your philosophy?

      • I've never felt I'm not living for today. Admittedly, most of what I want to do is consume a variety of media within the comfort of my home. But we also travel abroad every other year or so, and that's probably the biggest 'entertainment' expense in our lives. If we need a car to visit someone or somewhere outside the range of public transit or biking, we just rent one for the weekend (probably happens about once a year). We don't have to hesitate before choosing to do that because we know we're living well within our means the rest of the time.

        The thing is, once you're in the habit of doing this stuff, it doesn't feel like an imposition. It's just the way your life works. It was actually a bit of a struggle to remember all of those points when I was writing up that list yesterday, because it's all just natural to me now. There are probably a few more things we do along these lines that haven't occurred to me.

        And at that point, the savings are just a natural choice for what to do with all the surplus money. It's not even 'living for tomorrow.' It ceases to be an either/or situation. It's living for today in such a way that you can continue to live for today throughout your entire life.

        Also, there are a huge number of non-financial benefits on offer here, too: walking and biking at times you'd otherwise be driving is excellent for your health; planning meals allows you to choose healthier options, cut down on red meat consumption, etc; meal planning, buying second-hand goods, and not driving reduces dependency on online mega-retailers, international sweatshop labor, and environmentally harmful practices; making use of the library system indirectly supports its continued existence for folks who have no other options; and on and on.

        Anyway, I wouldn't recommend trying to do all of this at once if it's all a change for you. I'd recommend slowly introducing each of these practices over time so you have time to get used to each in isolation.

  • Move abroad, halve my taxes, triple my income, reduce my cost of living by nearly 80%, effectively increased my savings rate by ~1100%, from 500 EUR/month to now >5k EUR/month. That's 5k in fixed savings (investment plan), plus whatever else I don't spend accumulates in my savings account.

    1. For the first few years of my career after college which has a pretty generous 401k company matching scheme I put the maximum amount possible into my retirement accounts and lived well within my means to build up a nest egg. Now that I am married I have dialed back my investments so we can afford to live a little bit nicer with the knowledge that we have a really great start in our retirement accounts.
    2. My wife and I moved in together two years before getting married. This made living substantially cheaper for both of us and made us positive that we wanted to live together and could tolerate each other prior to tying the knot :).
    3. I got a vasectomy mid-last year. My wife and I both agreed long before marriage that we only want to adopt. Adoption is obviously very expensive, but now we have the peace of mind of knowing we have full control over when we start to invest in that process to expand our family. No "accidents" can happen which is very liberating.

    • I have a similar story as your first point. It boils down to tucking away money with each financial gain. I put in enough to my 401k to get the full match, then with each raise, increase the amount invested by the raise. I'd already learned to spend within my limits and had no credit card debt, so each raise was "new money". Years later, after adjusting our financials to pay for daycare, when the daycare expenses dropped (infants are most expensive, costs drop down as they age), we started putting into a college savings and some for school expenses. We had saved up enough to pay for private school, which was less than daycare. Now that private school is done, college is paid for, we're paying down the mortgages. We locked in at 3% years ago. The house will be paid off when the kid graduates HS and we turn 55 and are eligible for the employer's retirement program, including health care. We plan to travel in those years where we're young enough to be healthy and old enough to have some money tucked away.

      Oh, we also did the same for cars. When the car was paid off, we'd put the same money into a separate bank account and when it was tome to look for a new car, we had almost enough to pay for it outright.

      Of course all of this can only happen when you have the skill to spend with your means.

  • Buying $109 worth of Bitcoin back in 2014. I was going to buy a year cloud mining contract, but the company (hashop) went out of business before I could. (I dodged a bullet there) I then proceeded to spend bits of it here and there (coincidentally, my second worst financial move) until I had about $70 worth left, which I put in a paper wallet and forgot about. In 2020, I was able to sell most of the Bitcoin, and bought a vehicle, which helped me get through college and made me more eligible when I met the girl who would become my wife. All this to say, I made some dumb decisions that just happened to turn out well for me. YMMV

    1. Started a small mutual fund and retirement fund when I was just starting out and still in undergrad. I did not have much and was fully self sufficient. But someone came to my job and showed us how retirement plans worked and convinced me to start one. Same with a mutual fund. I never put more than $20-$40 in each because I didn’t have much but boy did that pay off.
    2. I purchased a small condo in the city with some of the money I put away in #1. Just sold it recently (20 years after purchasing it; lived in it for 5 years, rented it out for a profit for 15 years). I made a lot of money off that sale. More money than I’ve ever seen at once.
    3. My spouse and I have always lived below our means. Now we’re not frugal - we go out for nice dinners, travel, have kids. We also have good jobs. But, when we purchased a house we could have afforded to get one that was $600k and instead opted for a smaller townhome in a nice neighborhood for almost half the price. Living this way has paid off more than I could have ever imagined. Both of us don’t have to work. We travel whenever we want. We could technically both stop working in our 40s/50s and probably be fine. It’s a feeling of freedom. We’ve never over-extended ourselves. When our colleagues and friends were buying expensive homes and expensive cars and extending themselves, we just didn’t do that.

  • Getting out of renting and locking in a 30 year fixed interest rate of 3.25%.

    My monthly housing payment is no longer going up every year.

    My old apartment is already $300 a month more than I'm paying on my mortgage. It was only $200 a month less when I bought the house.

    • Buying property was definitely the one for me. It's a huge hurdle to get into, years of planning and prepping, but I've never felt more financially stable or secure as after buying property.

      Now I gotta go fix that stupid thing in the kitchen...

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