Living The Semi-Retired Life: An Update On And How I View (My) Discretionary Spending

I figured, what the heck? Let’s do a birthday post.

Today, I am officially 48 years old.

Given that it’s just past the middle of the month, it makes sense to update something I wrote about earlier in the month—discretionary spending. Particularly, discretionary spending in bars and restaurants.

I have a goal to write this newsletter for—at least—another 52 years. Knock on wood. We’ll see what happens. But, even if I fall somewhat short of that goal, we’ve got a long road ahead of us as we follow one another’s journeys in semi-retirement, traditional retirement or something else entirely.

If nothing else, you’ve got me for a long time. So—

Consider buying a paid subscription to the Living The Semi-Retired Life newsletter for $5/month, $50/year or pay at least $100 for a founding membership and I’ll convert you to a lifetime member so you’ll never pay again.

If you’re already a subscriber, you can upgrade your monthly or annual subscription to a founding membership. Just let me know if you do in the comments or via email.

This necessary promotional evil out of the way—discretionary spending.

I wrote the other day that a middle class absolutely still exists in the United States. And I feel like I’m in it. In terms of income.

Depends on who you talk to, but my survey of the estimates put the range to be classified as middle class between $48,000 and $97,500. Of course, this gets adjusted up—in some cases rather deep into the six figures—based on location.

That said, even though I live in Los Angeles, my relatively low cost of living makes me an outlier. I’m basically in the middle of middle class.

Pretty much everyone I know or talk to falls into this area of not being dirt poor or anywhere near wealthy. If you’re in this in-between — and you have to pay for housing, transportation and healthcare, but don’t want to work 60 hours a week — you’re thinking hard about your future.

And I am… thinking hard about and planning for the future.

Here’s the thing about falling in this relatively comfortable middle in America, particularly as it pertains to fixed cost of living and discretionary spending.

One, to make it in a big city or expensive suburb, you need below market rate housing. Whether it’s what I have on rent, a mortgage secured during the best of times or rental property income to cover your primary housing payment. Otherwise, how could you afford to rent—at or near market rate—or buy a house, today, in most of California and comparatively expensive places?

It’s just not possible.

Two, in my income range, you tend to get screwed on things like taxes and healthcare. Especially if you’re self-employed. I won’t even get into taxes specifically. But, on healthcare, I make a little too much to qualify for a subsidy. If I choose to go without insurance or subscribe to an alternative plan (because—knock on wood—I rarely use healthcare), California penalizes me at tax time because my state has an individual mandate. You get fined if you don’t maintain approved health insurance.

In principle, I am on board with this politically and socially. It’s just that I wish the State would think harder about how to help people in the middle.

All of that said, these are relatively small and good “problems” to have.

As evidenced by the reality that when you easily pay your bills each month, save a little and still have a decent amount of cash left over, it’s easy to lose track of discretionary spending.

Like I did last month.