1736: Luxury or Essential by Darrow Kirkpatrick of Can I Retire Yet on Being Financially Independent & FIRE

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🗓️ 10 December 2021

⏱️ 11 minutes

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Summary

Darrow Kirkpatrick of Can I Retire Yet shares the difference between luxury and essential. Episode 1736: Luxury or Essential by Darrow Kirkpatrick of Can I Retire Yet on Being Financially Independent & FIRE Darrow Kirkpatrick is the founder of CanIRetireYet.com. He began serious investing in his mid-30s and retired at age 50. He's not a dot com millionaire and didn't become financially independent by flipping real estate or trading hot stocks. He did it the traditional way: hard work, frugality, prudent investing, and patience. When it comes to personal finance, his top priorities are simplicity, reliability, and safety. Now his mission is to help others become financially independent as he did. More recently, Chris Mamula has been managing the blog and he's a frequent writer on the site. Chris used principles of traditional retirement planning, combined with creative lifestyle design, to retire from a career as a physical therapist at age 41. After poor experiences with the financial industry early in his professional life, he educated himself on investing and tax planning. Now he draws on his experience to write about wealth building, DIY investing, financial planning, early retirement, and lifestyle design. The original post is located here: https://www.caniretireyet.com/luxury-or-essential Visit Me Online at OLDPodcast.com Interested in advertising on the show? https://www.advertisecast.com/OptimalFinanceDaily Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily, episode 1736, Luxury or Essential by DeroCorpatric of caniretireyet.com
0:10.8	and I'm your host and personal finance enthusiast, Diana Mariam.
0:15.3	Now let's get right to today's post as we optimize your life.
0:23.4	Luxury or Essential by DeroCorpatric of caniretireyet.com
0:30.3	It's safe to say that most of us in line to become financially independent or retire early
0:36.1	don't lead lives of luxury. For example, I shave with bar soap, buy socks at Walmart,
0:43.6	don't pay for cable, and still don't own a smartphone. I'm just a lifelong cheap skate
0:49.7	who's been privileged to splurge in a few areas. Frugality is a necessary baseline for most
0:56.9	to build wealth. But does this mean that luxuries are bad? And what exactly is a luxury anyway?
1:04.3	Could it be different for different people? The dictionary tells us that a luxury is
1:09.6	something inessential but conducive to pleasure and comfort. But that definition leaves
1:16.0	quite a bit of room for interpretation. To be essential is to be close to the essence of
1:22.6	something inherent, almost a part of it. What is truly essential to human life?
1:28.4	Water, food, clothing, shelter, companionship? It's a short list. And at least in the developed
1:35.6	world, easily or freely obtained by most of us. Does that mean that everything else from
1:42.1	bicycles to BMWs, from ginger spice to ice cream, from watches to iPhones, is a luxury? Perhaps.
1:51.3	When it comes to evaluating and expense for the kind of frugal living that leads to
1:56.5	financial independence, I think it's more useful to focus on the following three factors,
2:02.5	rather than on whether something is a luxury or not by someone else's standards.
2:08.1	Number one, what are its features in addition to its core function?
2:13.6	Number two, what is its value to you in relation to its cost?
2:19.0	And number three, what is its overall cost in relation to your living expenses?
	...

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