Choosing to accept lifestyle creep. Looking for perspectives.
Background:
29M, born and raised in eastern europe started with 0 like most of us. Was always into FIRE and increasing income - moved to western europe -> hustled -> got a degree -> got a good job ->fast-track promotions etc.
Assets: +/-180k euro
- 156k equity at beta +/-1 (also +25% margin on top [strategy from: "Life-Cycle Investing and Leverage: Buying Stock on Margin Can Reduce Retirement Risk."])
- 18k cash (recently vested stocks to make a car purchase)
- +/- 6k in receivables (deposits, lending money to relatives friens etc.)
Income range:
- 125-135k euro mixed with stocks (lets simplify: +/- 6700e-7200e net with variation).
Expenses (+/-): 3900e. Saving +/-3000e
- Rent: 1350e (small studio)
- Food/eating out: 900e (I cook but also eat out)
- Going out: 400e (bars, friend gatherings, pool)
- Clothing/Accessories: 300e
- Hobbies / Gym: 200e
- Experiences: 700e (Traveling/Vacations/Music Festivals:This is what i always lived for - almost non-negotiable)
- Transportation: +/- 100e
Recently, as I am approaching 30 I have realized there is a discrepancy between the lifestyle I am looking for vs what I have "normalized" in order to optimize savings. I want to upgrade an apartment, and I want to buy a car.
Upgrading an apartment - I don't feel comfortable inviting over, I don't have enough space to practice other hobbies (Piano / DJing etc.). Looking for increase in 600 euro on accomodation.
Car - It can allow me to live in more rural areas, get better apartment. I would also like to start setting up audio/laser systems for events and car is necessary for this. That's another +/- 400 euro/month in TCO (depreciation, maintenance, fuel, parking, excl. opportunity cost of investing).
If change my lifestyle, I reduce my savings 3000e -> 2000e. That's 12000e a year lost. It's such a huge psychological barrier to go through I am having a very hard time accepting the decision. I am thinking to start saving more on things like food and going out, to make the change less psychologically hurtful.
I am looking for perspectives of those who have been contemplating similar decision in the past. How did you go about it - what decision did you make and do you regret it ?
Note: Purchasing apartment is not an option in my situation. Rental yield is one of the lowest in europe and i am not sure whether i will stay where i live for long.