The Briefing Room
General Category => Economy/Business => Topic started by: rangerrebew on July 11, 2017, 04:38:25 pm
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Most people blow 70% of their money on 3 things — and cutting back could be the key to retiring much earlier
Lauren Lyons Cole
Business InsiderJuly 10, 2017
(Rule 1: Live below your means.Facebook)
Retirement might seem light-years away, but if you get to your golden years with insufficient funds, it's guaranteed to be even further.
Saving enough over a 40-year career to maintain your lifestyle in retirement is challenging. But there's a lot to be learned from the people who have managed to hit their savings goals well before that point, even if you haven't been bitten by the early-retirement bug.
https://finance.yahoo.com/news/most-people-blow-70-money-123700500.html
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Didn't click through, but at least 70% of my money goes to 5 things ... Son #1, Son #2, Son #3, Son #4, and Son #5.
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Didn't click through, but at least 70% of my money goes to 5 things ... Son #1, Son #2, Son #3, Son #4, and Son #5.
My three are booze, tobacco, and women.
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Didn't click through, but at least 70% of my money goes to 5 things ... Son #1, Son #2, Son #3, Son #4, and Son #5.
I'd be a millionaire if I'd never got married and had kids. It was a sobering thought a few years back, when I realized that day care alone for my last child was about $40K over 5 years, meaning it cost $60K in salary, pre-tax.
From that point on, I vowed to never think about personal finances while driving...
OTOH, I don't deal in what-ifs. I stand by the decisions I've made, and tried to learn from my mistakes. I'm staying true to my major goal in life, to grow old without being bitter for mistakes and missed opportunities.
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I'd be a millionaire if I'd never got married and had kids.
Yeah. And I wouldn't change it for the world. Those boys are the apples of my eye and they are priceless.
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No kids but a huge chunk of our money went to horses and old cars.
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I'd be a millionaire if I'd never got married and had kids. It was a sobering thought a few years back, when I realized that day care alone for my last child was about $40K over 5 years, meaning it cost $60K in salary, pre-tax.
You just spurred a memory from long ago. I got divorced and my 30 something ex, started bragging about this new guy she was dating. She said, he's got a boat, and a fancy car, and a beautiful condo, and this, and that, and he golfs every day, and on and on.
I said, That sounds great. Then I asked, How many times has he been married? She said, He's never been married.
LOL, hahaha hahaha, So I said, Well no wonder he has all that stuff. Dummy! He's smarter than me. I could have twice what he has, if I had never married and had kids. But logic doesn't matter to a woman with ga-ga eyes.
I knew right then that she was barking up an empty tree. I knew he would never marry her. And I was right.
Women can be so blind sometimes.
But I must say, in agreement with you, I don't regret anything. I feel that my life had a general path, that I was meant to trod. I veered off the path more than once, but overall I stayed generally on my destination. Call it fate. Call it destiny. Call it the will of God. Whatever it is, I feel that everything I have done was what I, what I was meant to do. Therefore, I cannot have any regrets. How can I? I was just following my path.
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I'm trying to rectify two errors I made during my prime: 1) not listening to those close to me who had more experience, and 2) llstening to those close to me who had more experience.
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For those who didn't click through, it's food, transportation and shelter (housing).
The food and transportation ones make sense. Housing, on the other hand, isn't anywhere near as flexible as the author claims. To find a place with a rent/mortgage payment at less than 25% of income only works if you have a solid, reliable and above-median income stream. Otherwise, the only way to achieve that is to move back in with your parents.
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The gall of the idiots in the media -- at the original article, Zuckerberg and Chan are the example married couple?!?
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Alcohol, tobacco and firearms.
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key to retiring much earlier
Here is (was) my strategy. Could have retired at 46, waited till 55 for healthcare.
This is just how it worked for me. Everybody’s situation is different, and should be handled accordingly
1. Priority 1 should be eliminating or reducing debt. I view debt payments by default as negative income.
2. Competitively bid all aspects of your expenses. Get the utmost value down to the penny for everything you buy, or services you secure. Over years and years, you would be surprised how much this adds to your net worth balance sheet.
3. Keep your investment portfolio that is intended toward goals... i.e retirement as an example, in strong conservative investments. When you have those bases covered, then you can look at speculative plays.
4. I invested zero in the dot com era in the 90's. My father gave me the best advise of all in that era.. Why would you ever invest in anything that doesn't make money? To me that rule still applies today.
5. I have found that the simple rule of putting 100 minus your age in equities worked pretty well for me. Maybe not for everyone, but........
6. Research and analysis. When investing, I tend to get into stocks which I think have good products that I like. Before getting in I research it to death too. A Low P/E is often a good indicator. Furthermore, is there a long term demand for the product.
7. The best time often to invest is when everyone is rushing out the door. This is the toughest part, but finding a price bottom, is golden toward finding long term return.
8. Monitor investments and net worth monthly. Research, evaluate, and adjust as needed.
9. Don't fall in love with a stock/fund/etc. so much that you resist selling when the fruit is ripe. Don't forget that your favorite stock is not a family member.
10. Never forget that a SHTF scenario is always a possibility. Remote, but still there. Have a base amount of investments that will address. Metals, Land, etc.
11. Formulate and adhere to three different budget scenarios... (1) Regular (2) Austerity (3) Emergency.
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2. Competitively bid all aspects of your expenses. Get the utmost value down to the penny for everything you buy, or services you secure. Over years and years, you would be surprised how much this adds to your net worth balance sheet.
I had a boss in one of my early jobs whenever we were on the road and stopped at hotel for the night he would ask how much for a room, the clerk would say $125.00. He would say I will give you $90.00 or I'm going across the street. 90% of the time they would give it to him for $90.
He would do that for everything even food. Amazingly you would be surprised how often it worked
Embarrased the heck out of me.
@catfish1957
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Mountain bikes, backpacking gear and booze...saving for retirement, yes...however...
Not getting out of this alive, might as well live while one is young vs. just existing hoping you live long enough to do all the things folks do when retired and are too old to enjoy adrenaline junky pursuits. :whistle:
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Hookers. Loose women. Boats. Buying.... not leasing two out of those three was my downfall.
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"Most people blow 70% of their money on 3 things"
I spent it on Macs, banjos and Harleys.
But I'm still doin' ok...
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Liquor, whores and taxes.
The sooner I stop paying taxes, the better.
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No kids but a huge chunk of our money went to horses and old cars.
Horses and Horsepower?
Child #2 is trying to convince me to upgrade a recent horse. If successful, it will be our first 5 figure horse.
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For those who didn't click through, it's food, transportation and shelter (housing).
That was my guess, not sure how "blowing" is buying essentials.
The food and transportation ones make sense. Housing, on the other hand, isn't anywhere near as flexible as the author claims. To find a place with a rent/mortgage payment at less than 25% of income only works if you have a solid, reliable and above-median income stream. Otherwise, the only way to achieve that is to move back in with your parents.
Also some of us purchase property to become its own income stream, eventually. At least that is the plan I'm selling to the wife...
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Liquor, whores and taxes.
The sooner I stop paying taxes, the better.
If you are in the 35% bracket, how much money must you earn in order to pay for a $300,000 house?
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If you are in the 35% bracket, how much money must you earn in order to pay for a $300,000 house?
@Bigun
You would need to earn [edit: AT LEAST] 53.8% more than if your tax burden was zero. Think about that for a moment.
#InvoluntaryServitude
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@Bigun
You would need to earn 53.8% more than if your tax burden was zero. Think about that for a moment.
#InvoluntaryServitude
I have! Believe me I have!
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I have! Believe me I have!
@Bigun
My previous statement has been edited for clarity.
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Horses and Horsepower?
Child #2 is trying to convince me to upgrade a recent horse. If successful, it will be our first 5 figure horse.
From when we were dating to now I figure my wife spent close to $500,000 on her horses. Until we bought land she rented 2 stalls at a local stable $800 month for many years, add in what we paid for the land, barn, hay elevator, fencing, tractor and brush hog, vet bills, feed, electric & water, truck and horse trailer, bedding, insurance etc
She goes to horse shows all summer at about $750-1000 per event.
She never complains what I spend on my cars
As for expensive horses our neighbor bought their 14 yr old daughter a 5 figure horse as she was really into jumping but at age 16 she went totally boy crazy and has pretty much forgot about the horses.
@thackney
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Alcohol, tobacco and firearms.
. . . should be the name of a convenient store, not a federal agency :silly:
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I had a boss in one of my early jobs whenever we were on the road and stopped at hotel for the night he would ask how much for a room, the clerk would say $125.00. He would say I will give you $90.00 or I'm going across the street. 90% of the time they would give it to him for $90.
He would do that for everything even food. Amazingly you would be surprised how often it worked
Embarrased the heck out of me.
@catfish1957
You worked for Donald Trump? :silly:
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You just spurred a memory from long ago. I got divorced and my 30 something ex, started bragging about this new guy she was dating. She said, he's got a boat, and a fancy car, and a beautiful condo, and this, and that, and he golfs every day, and on and on.
I said, That sounds great. Then I asked, How many times has he been married? She said, He's never been married.
LOL, hahaha hahaha, So I said, Well no wonder he has all that stuff. Dummy! He's smarter than me. I could have twice what he has, if I had never married and had kids. But logic doesn't matter to a woman with ga-ga eyes.
I knew right then that she was barking up an empty tree. I knew he would never marry her. And I was right.
Women can be so blind sometimes.
But I must say, in agreement with you, I don't regret anything. I feel that my life had a general path, that I was meant to trod. I veered off the path more than once, but overall I stayed generally on my destination. Call it fate. Call it destiny. Call it the will of God. Whatever it is, I feel that everything I have done was what I, what I was meant to do. Therefore, I cannot have any regrets. How can I? I was just following my path.
Just wanted to clarify that I have no regrets whatsoever over my marriage and 3 children. My life would not be as fulfilling and enjoyable without them, and now there's a grandson who's been the apple of my eye for nearly 7 years.
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. . . should be the name of a convenient store, not a federal agency :silly:
@goodwithagun
I've been to that place... in the mountains of Bailey, Colorado... back in 2013.
(https://s23.postimg.org/osqd1ymvv/ATF.jpg)
The green crosses on the sign basically put it over the top as a true Party City.
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Liquor, whores and taxes.
The sooner I stop paying taxes, the better.
My 3...
(1) High Yield, low risk equities.
(2) Innovative V Cap M Funds that pull <15% growth in an off year.
(3) Hi yield corp bonds AA or better that will pay until I am long gone.
Yep, its an Ebeenezer obsession.
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I had a boss in one of my early jobs whenever we were on the road and stopped at hotel for the night he would ask how much for a room, the clerk would say $125.00. He would say I will give you $90.00 or I'm going across the street. 90% of the time they would give it to him for $90.
He would do that for everything even food. Amazingly you would be surprised how often it worked
Embarrased the heck out of me.
@catfish1957
One of my brothers does exactly the same.
He always bargains and has made himself a very successful self-made career working for himself.
It really works, and I have always told him I would prefer to take a 10% take on what he purchases as my return would likely be 20% or more. Better than the stock market over the years, and low risk.