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Old 05-02-2010, 04:10 PM
 
Location: Grove City, Ohio
10,138 posts, read 12,402,575 times
Reputation: 13987

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Quote:
Originally Posted by Twinkle Toes View Post
Well, I would have retired but unfortunately I only got 3 numbers on the Mega Lottery tonight and the winning ticket was in Georgia. Maybe next time I'll be the lucky one retiring.
I'm in Georgia and purchased $5 worth. Haven't checked yet but if I win I'd take everyone who has logged on to the retirement forum in the past 6 months on an all expense paid cruise. We'd have a good time.
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Old 05-03-2010, 07:55 AM
 
3,440 posts, read 7,237,430 times
Reputation: 2387
Quote:
Originally Posted by cousinsal View Post
If you can't do it financially, you can work until you drop. And, many of us Baby Boomers will have to do just that - in the last 30-40 years, wages have gone down, as everything else has gone up.

Now, they try to take away Social Security, which is the ONLY thing that some elders have.

I figure I'll always work - at least part-time. My father retired at my age - 57. But, that was because back in the day - costs were more in line with peoples' salaries, and he had the GI bill after WWII to buy a house. He would not have been able to buy a house these days - he was a teacher, who didn't make big money. Also, he was able to stay working for the State of NY for 30 years with a pension - many people cannot do that now. A lot of people have a "break" in their work life, if they are laid off.

I had a break about 10 years ago, and it took me 7 years to get back to the salary I was making when I was laid off. Many times if you lose your job, you have to start all over again - you are not likely to make the same salary that you had. So, after having that "break", I was behind in just about everything, and you kind of never make up for it.
.
Exactly.
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Old 05-03-2010, 08:01 AM
 
3,440 posts, read 7,237,430 times
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Quote:
Originally Posted by cpg35223 View Post
I'm sorry. But eight years ago, my wife and I were practically broke. Today we have a net worth over $800,0000.

It starts with taking a long, hard look at your life. The way you're spending. The way you're saving. The way you're managing your career. Then you need the discipline to take strong medicine.

Let's start with the obvious stuff. We figured out that by spending $6-10 on lunch everyday, we were spending $240-$400 monthly on lunches. We figured that by buying in bulk, we were shaving about $300 a month on our grocery bill. That was $3000 a year. We realized that, by consolidating our credit card bills and refinancing our house, we were saving $400 a month.

So just on those three items alone, we saved $940-$1100 a month.

We began making a game out of all the ways we could trim our expenses. We realized that, by insulating the attic, we were saving $75 a month off our heating and air conditioning bills.

So total it up, and we were now saving $1015-$1175 a month.

We realized that, by making our cars last two extra years each we could save somewhere around $14,000 a year over two years--a $28,000 savings. We realized that, by being smart with our deductibles, we would save money there, too.

So total it up, and we were now saving about $2015-$2175 a month.

That means, without a raise, some sacrifices, and some intelligent reworking of our finances, we had about $25,000 a year in FOUND MONEY. I didn't say that it was easy, and our kids whined for a while, but it sure felt a lot better than constantly worrying about the wolf at our door.

We found that, if we found different jobs and worked our fannies off, the raises would keep coming. Seven years ago, our combined household income was $100,000. Now it's over $200,000. What's more, aside from our house payment, we owe nothing. Zilch. Nichevo. Nada. And we're paying down our house every month.

We made a budget and stuck to it. What's more, after paying the mortgage, we put 10% immediately into an investment account. Once we accumulated $100,000 in savings, we started looking for investment opportunities. We found a commercial property firm that was looking for new investors. And things have snowballed since. So we now owe $65000 on a house we bought for $350,000, and have $600,000 in various investments. Plus we put $30,000 away every year. Even if we only make 6% return a year, we still have $1,851,000 ten years from today. And that doesn't even include the equity in our house, which we have worked hard to renovate using our own time and sweat. Heck, just by hanging our own drywall to finish out the basement, we probably added $75,000 to the value of the house. At least that's what our friend the realtor said.

I really don't care for this "Our parents generation had it much better" nonsense
. If you look at the material aspects of our parent's generations, they made do with much less. Smaller houses, fewer cars, etc. etc. etc. What they had then that people seem to lack today was the basic discipline to not spend money, and to always put money away.
Excellent post and I absolutely agree about the last part.
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Old 05-03-2010, 06:58 PM
 
Location: Boise, ID
8,043 posts, read 23,760,147 times
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Quote:
Originally Posted by cpg35223 View Post
So total it up, and we were now saving about $2015-$2175 a month.
Lol, you saved more than hubby and I spend in a month, including the mortgage. Since we are pretty frugal already, we could probably cut $100 a month from our expenses...maybe. Our total expenses for the month are about $1800. That includes mortgage, groceries, various insurances (health, car, home), and utilities. If I add in retirement savings, then we have about $2800 total expenses.

To the OP, hubby and I both dislike our jobs, and we are both the type who don't "have" to work to be happy. We don't get bored by not having a job, so we will "retire" as soon as we are able to do so. Our house will be paid off by the time we are about 40, so we will probably stop working full time by our mid 40s and find something "fun" to make money at part time. We will only need about $2000 a month (at today's value of a $ anyway), including maxing retirement accounts, so that won't take much.
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