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I don't think inflation would have that much of an effect on someone who's retired with no mortgage nor car payments etc. Just throwing out the illusion as everything is in place to limit that kind of thing. I'd be tickled to be able to get the run of the mill 5% that was the norm for most of my adult life. Being in my almost mid 60's and seeing what's happened at least twice in the last 13 years stock market wise, I'd be happy with some normalcy. Pipe dreams are the same as they always were, something to dream about. As for pension money I'd love to have some, but I've been a self employed tradesman most of my life. Luckily my wife has made a fortune as a school teacher in Florida and South Carolina(see and read the former Yankee sarcasm)....hence my plan to work as long as I can climb a step ladder and get up off the floor after painting base boards. pd
I am not advocating irresponsible behavior, we all obviously need to save. But sorry, unless you are making huge money anyone who is saving 30% of their take home pay is sacrificing quality of life IMO. Life is for living and nobody is guaranteed a long life. As I said I am a responsible saver but I also understand that you should enjoy life while you can.
I am not advocating irresponsible behavior, we all obviously need to save. But sorry, unless you are making huge money anyone who is saving 30% of their take home pay is sacrificing quality of life IMO. Life is for living and nobody is guaranteed a long life. As I said I am a responsible saver but I also understand that you should enjoy life while you can.
It depends on what the definition of 'making huge money' is.
It depends on what the definition of 'making huge money' is.
True and obviously everyone's lifestyle is different. But I have to believe 30% for the vast majority of people means huge sacrifices. Again plan for the future but don't forget to live while you can is my believe.
I agree with Dave. We'll be retiring in a few years with less than the OP. However, we also plan to work some. If the working doesn't happen in retirement, we'll just learn to budget and do without. We've done it before.
I think the better question may be "If I have $X, what kind of retirement can I have?" The wife and I aren't seeing eye to eye on this just yet. For instance, one of our cars is now 10 years old. She's talking about getting a new one rather than putting maybe $1500 of repair into it. I don't know why. When we were both working, sure. But she's been on a break since October and may not get another job. I'm working part time, so if I take the newer car, sometimes she has to drive the beater. But she may not need a car that day anyway. So why invest $30K in something we use once in awhile? And of course the tax on the purchase, plus Arkansas taxes our cars every year, plus a rise in the insurance on a more expensive vehicle and so on.
If the life situation changes, needs change with it. But some people are really creatures of habit. If they always bought a new car every three years---or got new clothes every fall---or always have to have the newest, biggest TV---or constantly try keeping up with the Joneses---they may be spending money they really don't need to.
Also, we've turned into bargain hounds. At the supermarket, we look for the meat that's been marked down because it expires soon. Dented cans? No problem. We get no name brand stuff at Aldi (try the Hwy 5 wine---it's $5 a bottle). We shop at discount clothing stores. The wife looks for the "oops" paint and plants that are struggling (discounted) at Home Depot. We're forever checking the end caps in stores for stuff they're trying to get rid of.
There's one store here that puts out fresh inventory in bins on Saturday. For the weekend, everything is $10. On Monday it drops to $5, then $4 on Tuesday etc. until it's $1 on Friday. We've found some killer deals. For instance, six dozen "greenie" dog treats would run about $75 on amazon; we got them for $10.
Mind you, we do have money socked away. But why spend it if you don't have to?
Also, in an effort to avoid wasting money, just before we moved, we decided: no more presents. Not anniversary or birthday or Christmas or any of that. Why rack your brain to buy the other person something (s)he doesn't really want or need? Throughout the year we buy what we want when we want it or need it or when it's on sale. Sometimes I would order something, like a camera, and when it arrived I'd joke, "Look at what you got me for my birthday!" when my birthday was still 6 months away. We honor the occasions by going out to dinner and that's good enough.
I think a lot of people do a mental substitution. For instance, "I saved so much on those groceries that I can treat myself to a dinner out." That's fine. But what did I really want most? I substituted, 'By not wasting money here, I can retire earlier. A day, a week, a month? I don't know. Earlier.'
I know, right? At the bottom of the thread it said (basically) "Feel free to add new opinions because people are still reading these." So I reanimated the zombie.
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