I've always been interested in tiny houses. They sacrifice very little in terms comfort or needs; They are just smaller. Oh, and very cheap as far as homes go. I also like how they are also generally very ecological. However, it is a niche interest, which is why I am all the more surprised that there is a small, local meetup group here for it.

Last night, I decided to actually attend one, and I met a new friend there. We ended up talking all night. Come to find out, this person currently lives in a 1800 sq. ft. townhouse with a $1400 per month rent... for just one person. Herself. And on top of that, she just bought a new car that costs somewhere between $32k to $35k.

To me, this is rather pricey for just one person, but it's nothing to write home about.

But what really shocked me was that, in order to pay for all that, she is taking money out of her IRA. Not even a loan against it, just straight money out. And yes, she is aware that she is taking the 10% early withdraw penalty hit!

I instinctively gasped in shock, and I think my reaction made her defensive as she tried to explain that she just moved to a new area, it's a really nice area (it really is), and she also needed a nice car to drive people around as she is a real estate agent, etc etc.

That's fine. Whatever the reasons are, it is not my concern anyway, but I just couldn't contain my initial shock when I first heard it. Take out money from an IRA? With early withdraw penalty? And really, just to feed some expensive wants? The very thought of it... is utter insanity to me.

Also, how long can that IRA money last? Based on the way she described it, she didn't have that much to begin with. But here is the real bomb shell: She told me she's deliberately not working right now because she can "afford not to".

Yes, you heard it right. She actually said that she isn't working right now because she can "afford not to".

Soooo yeah. It's always nice to meet new people though, and besides our wildly different views on money, she's a nice enough person. She mused how she has always dated poor musicians, and should try rich guys instead. I joked that I should too.