All right, you probably know that I\u2019m a pretty cheap guy. Normally, I prefer the cheap or free option rather than expensive\/luxurious ones. Unsurprisingly, more wealth didn\u2019t change me at all. I\u2019m still frugal and don\u2019t splurge on many items. We optimized our personal finance over the years and it enables us to keep investing even in challenging times. Let\u2019s look at our Big 3 expenses for example.<\/p>\n
Housing<\/strong> \u2013 We live in a duplex and rent out one unit to generate passive income<\/a>. As a result, our monthly housing expense is much lower than average for our area.<\/p>\n Transportation<\/strong> \u2013 Our car is as old as our son and we hope it\u2019ll last until he goes off to college. We drive less than 5,000 miles per year so we don\u2019t have to pay much for gasoline either. Our transportation cost is minuscule compares to the average household.<\/p>\n Food<\/strong> \u2013 This one is the anomaly. Our food expense is about 20% higher than the average household in our state. That includes groceries and eating out. We cook most of our meals and eat out a few times per month. It is somewhat surprising to see that our monthly food expense is higher than average.<\/p>\n Dave @ Accidental FIRE put together some great maps to show the median cost of the Big 3 expenses in each state<\/a>. Check it out if you haven\u2019t seen his post yet.<\/p>\n Anyway, I am still frugal and don\u2019t like to spend a lot of money. I\u2019d rather invest, but there are a few things I don\u2019t mind splurging on. Here are the 5 things I don\u2019t skimp on.<\/p>\n I put on my glasses when I wake up and take them off when I go to bed. A cheap pair of glasses never worked for me. I tried several from the internet. The cheap ones don\u2019t fit right, feel cheap, and\/or don\u2019t look good. In this instance, I don\u2019t mind paying for designer frames because I\u2019ll wear them every day for about 5 years. Even if the glasses cost $600, that\u2019s only about 33 cents per day. My prescription is quite bad so I go for the lightest lenses (high index) available. Anti-reflection coating is also a must for me. All these add up, but I don\u2019t mind paying for a high-quality product. I wear glasses all the time and that\u2019s what people see first.<\/p>\n Also, we love our optometrist. She runs a local business and she needs our support. My eyes have issues and they need specialized care. The internet can\u2019t provide that.<\/p>\n It\u2019s been a tough few years for the travel and tourism industry. I still managed to visit my parents every year, but international travel is a lot more difficult than in the good old days. There are so many rules and restrictions now. Fortunately, things are improving. Many countries are opening up and this summer will be very busy for the tourism industry.<\/p>\n When RB40Jr was born, we put off international travel for about 4 years. We didn\u2019t want to travel until our kid is a little bit older so he could enjoy it too. Vacationing in the US was good too. Once he was 4 we were ready to travel internationally again. We\u2019ve been to Thailand, Hong Kong, Japan, Iceland, Mexico, and Costa Rica. It\u2019s great to show him that the world isn\u2019t like the US.<\/p>\n Travel isn\u2019t cheap. This year will be especially expensive due to the energy inflation, but we love traveling. It\u2019s one of few things we don\u2019t mind splurging on. Although, travel can be even cheaper than staying home. I spent just $2,000 on my 3 months long trip to Thailand<\/a>. <\/p>\n This is very important when you have children. Like all parents, we want to live in a good school district. RB40Jr\u2019s elementary school is awesome. It\u2019s a public school, but all the teachers and staffs are so great. Our son has a hearing disability and the support has been phenomenal. We really love this school. Next year, he\u2019ll move to a junior high school. I hope it works as well.<\/p>\n We could have purchased a home in a cheaper area with mediocre schools, but we decided to pay more to be in a better school district. We are also saving up in the 529 college savings account for our son. Education is very important to us.<\/p>\n In the process of buying and selling our property investments, I found out that smoke detectors last about 10 years. Anything older needs to be replaced. That\u2019s a good rule because you never know if an old smoke detector is still functioning properly. Previously, I just change the batteries whenever the smoke detectors chirp, but now I\u2019ll replace them every 10 years or so. Also, your smoke detectors are probably the cheapest model available. Better smoke detectors have dual sensors to detect different kinds of fire, but they are a bit more expensive.<\/p>\n *Update<\/strong> \u2013 The last time I shopped for a smoke detector, the batteries are not replaceable anymore. You just replace the whole thing when it runs out of juice. I feel this is much safer.<\/p>\n As a cheap guy, I love hand-me-downs. However, a child car seat is one item that I won\u2019t take or hand down to my friends and family. Most child safety seat is good for around 5 years. The materials degrade as the seat age and you shouldn\u2019t use the car seat past the expiration date. Another reason to buy a new seat is that safety standards improve all the time. A new seat is not cheap, but it\u2019s probably safer than an older one. You never know if an old seat was in a car crash or if it has ever been recalled.<\/p>\n *Update<\/strong> – This is no longer a concern for us. Our son doesn\u2019t need a car seat anymore. Yay!<\/p>\n And my new #5 is food! We enjoy eating delicious food and we don\u2019t mind spending money on it. Fortunately, I also enjoy cooking so our food expense is still reasonable. I cook on the weekdays and Mrs. RB40 cooks on the weekends. That\u2019s the biggest secret to keeping your food expense reasonable \u2013 cook at home. We enjoy going out to eat as well, but we only go a few times per month. It\u2019s just easier and more comfortable to eat at home.<\/p>\n What about you? What are some of the things that you don\u2019t mind splurging on?<\/strong><\/p>\n *Sign up for a free account at Personal Capital<\/a> to help manage your investments. I log in almost every day to check on my accounts and cash flow. It\u2019s a great site for DIY investors.<\/p>\n The post 5 things I don\u2019t skimp on<\/a> appeared first on Retire by 40<\/a>.<\/p>\n Source: Retire By 40<\/p>\n1. Eye Glasses<\/strong><\/h2>\n
![\"\"](\"https:\/\/i0.wp.com\/retireby40.org\/wp-content\/uploads\/2022\/04\/rice-field-1024x576.jpg?resize=993%2C559&ssl=1\")
<\/figure>\n<\/div>\n2. Travel<\/strong><\/h2>\n
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3. School district<\/strong><\/h2>\n
4. Smoke detector<\/strong><\/h2>\n
NA – Child car seat<\/strong><\/h2>\n
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<\/figure>\n<\/div>\n5. Food<\/strong><\/h2>\n