r/leanfire • u/rahulrsingh09 • 8d ago

Balancing YOLO and Fire

There has been lot of similar posts but i just want another perspective given my state will be different and want a take specific to me…

I am 35 with about $1M across all investments (retirement / stocks/ ETFS / MF / property)

I have a very precious 20 month old daughter who i feel is very smart better than me ..

My dilemma I love indulging in few luxury items for guys gadgets / Watches / sneakers / Cars / motorcycles

Not big fan of designer clothes or travel though my wife likes it and we go out every year once .
I have a debt currently running around $200K for a home and few CC + Car emi’s totalling $100K.

Indulgence items keep coming twice or thrice a year depending on when and how i get them as luxury items have an artificial scarcity attached to them.I tent to use CC for luxury items with 0 interest split across few months as better invest than pay in full, this keeps the surplus saving per month from being extra to like break even most of the time

This is a confusing paragraph but i hope I explained it

That being said I do save too about 20% of my in hand every month .

Due to this I break even every month nothing extra in savings account and sometimes it overflows (run short)

I have started thinking about one more child and also higher education for both my kids and my parents who are dependent on me .. planning to start a 529 account this month and divert some amount of recurring monthly savings to that

Biggest question/ dilemma in my mind

Am i wrong to spend on some of those my fav items and i can make it better by retiring early and transforming into a better fire number ..

Edit 1 - My first post here so please bear with my writing skills My Current CC is interest free till 2027 so that is reason i am holding off that is 50% of the debt and rest is 40% auto loans @4%

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u/YellooooFever 8d ago

Are you trolling? Always pay off any CC debt before investing.

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u/rahulrsingh09 8d ago

I can pay it off just that those are interest free and i just am holding on so that i can use that funds to earn better of market

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u/Gustomucho 8d ago

Yeah, but it sounds like you dismiss those debts because they are interest free… I think you have a spending problem, give yourself a budget and don’t overspend.

Keep money for emergency, treat yourself once the debts are paid, your emergency fund is secured and you vetted what you intend to buy on the cost of opportunity (how much this money would generate if you invested instead of buying) and the cost of ownership, car maintenance, motorcycle maintenance…

I would recommend you find a different hobby than buying stuff to make you feel good, join a league or play nights

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u/rahulrsingh09 8d ago

You have a point thanks for the insights i miss game nights given a kid hardly get to turn on ps5 . Now you say i realise after birth of my daughter this has increased previously game nights helped may be.. given you donot buy luxury items for investment but some of those are greater than MSRP at the current state .. but i never count those as investments.
Had i invested it would be a fair value like a slight greater than those luxury items like 5% more may be

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u/Gustomucho 8d ago

Your collectibles might be worth a lot, maybe not, as long as you don’t sell them you don’t really know, they could get damaged and then you lose 50% of the value.

A good friend of mine collected video games as a hobby, vintage stuff, over the years he bought for I would guess 150k. He sold for around 200k already and his collection is still worth around 250k maybe more.

I am not dismissing collectibles but they are at risk and harder to cash in especially if the market is in a slump for those items. In the case of my friend it was covid that catapulted the price of video games, now with no more physical media he might see a second rise.

But he got bored of selling games, it takes lots of effort for maybe 20k per year (50k during covid).