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You put almost the median HH gross income aside just for blow off money, let that sink in
I'm very fortunate to be able to do that but when you're retired and have no expenses, it's doable. Been through the car thing, drive around in 2008 PU truck most days.
I'm very fortunate to be able to do that but when you're retired and have no expenses, it's doable. Been through the car thing, drive around in 2008 PU truck most days.
We’re not yet retired (59) but we’re already well ahead of where our financial advisor wants us to be when we do retire and getting farther ahead every month. Why not spend what we can easily afford on things we enjoy? There’s no guarantee we’ll even get to retirement so if we can have some fun now, we’re doing it even if we are spending an amount others find excessive. We spent decades scrimping and saving to be in this position and we’re going to enjoy it!
The first home that my wife and I bought, was a property with three houses on it. We scrapped together the closing costs to buy it, and we moved into one house. The other two houses were already filled with tenants. The rental income provided us enough to cover the mortgage & insurance payments. We never used any of my salary income to make payments on that property.
I was active duty in the US Navy and when we were transferred to our next duty station. We bought a five-plex property. Where we lived in one unit [the largest unit] and we rented out the other four units. Which again provided enough cash to cover the mortgage, taxes and insurance payments. We began using my salary income to make a monthly principal-only payment on the mortgage.
By the time that I got my Navy pension, we had cycled through four of these Multi-Family-Residences. We liquidated the equity we had built up and used that to buy our retirement farm with no mortgage, just all cash.
Honestly, the thing that has helped me the most is to keep my housing costs as low as I could tolerate.
For me, as a single person in a high cost area, that meant renting a room (for 8.5 years) when I could've had a studio apartment and then upgrading to a studio when everyone else would've gotten a 1BR.
^^The above is usually an answer people don't want to hear.
I also have no pets, which makes it a lot easier to find a place in an expensive area with a perpetually tight housing market. Pets definitely mean you're going to pay more for housing and have fewer choices.
Other things that save money:
--Not having cable t.v. for the last 20+ years.
--Buying decent used economy cars and driving them until the wheels fall off.
--A $30 a month cell phone plan. I don't have unlimited data. So what?
--Living walking distance to my job for the last 11+ years (although I concede most people can't do this easily).
--I do eat out, but I keep it under control. 2X a week at reasonable places.
--I drink very little alcohol, and never at bars or restaurants.
--No tattoos.
--No smoking or drug habits.
--Clothes? I guy a new pair of jeans and 2 new pairs of sneakers every 2 years. I have a ton of shirts of every variety (dress, casual, & t-shirts). Most of them are 7 years old or older. Most of the newer ones are free t-shirts from work.
--Groceries. I rarely use coupons, but I do go crazy stocking up on things when they go on sale.
Last edited by mysticaltyger; 06-11-2019 at 09:47 AM..
When coupled, I think that one of the best strategies to save money is to actively choose a partner who has a similarly wise money management style. A saver yoked to an over spender is a recipe for marital unhappiness, if not financial ruin when the s**t hits the fan as it always does at some point in most people's lives.
Yes, absolutely. I was in a relationship like this where I was the saver. He was the spender. He's older than me and now he is financially struggling, living like a college student in his old age with minimal savings and no investments. I'm in my late 40s and financially comfortable.
three.
1. long-term: same house, same spouse.
2. mid-term: keep (maintain) a car for at least 9 years.
3. short-term: stock up when it is on sale or "special".
(example...we still have Kleenex boxes from a sale in September)
Cook and eat at home as often as possible. Dining out is SOOOO expensive.
Very true. We had dinner at The Palm last night with friends who go there at least once/week while they're in town (they just returned from a 130-ish day around the world cruise). Their frequent diner points total indicates they've spent over $36,000 at The Palm over the past 4 years. At a standard 20% tip, that's a fair bit of change she's dropped into the local economy. That's probably why numerous staff members came over to greet them, hug them, & genuflect before them.
"You just keep your eye on the ball and swing at the right time." - Ted Williams' advice for how to hit .400.
"Buy low, sell high; marginal cost=marginal revenue." -- A famous ec.... oh, never mind.
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