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Just wondering, did you manage to save for a good retirement by avoiding these money wasters, or did you do OK still having a latte twice a day and with 25 pairs of shoes in your closet? Or, choice #3, did you spend on all these kind of things throughout your life and now you wish you had put more away for retirement?
That's a great list! We've always lived frugally, and that was a big reason we were able to retire when we did. In particular I think its smart to stop going to restaurants except for a few special occasions. Eating out really adds up, plus it hard on your waistline.
I think it depends on one's income and how much one saves and invests before budgeting the remainder for spending on necessities and wants. Also whether one is single or part of a couple, whether one has children, how those children are raised and educated, where the family lives, and lots of other things. Foregoing a few relatively low-cost items over a lifetime makes more of a difference at the lower end of the income spectrum. If one's income is so limited that regularly spending a few dollars on a treat like a latte or a good haircut is going to cause hardship or reduce one's ability to save, that's not really a spending problem. It's an income problem.
So, if one's income is low and one cannot or will not do anything to change that variable, then sure, take a pass on small indulgences and save that money for retirement.
I like lattes and good haircuts and nice vacations and fancy shoes. I was fortunate to be able to maximize my income to afford what I wanted and save for a retirement that provides an income that after 5 years now exceeds my working income. Having no spouse or kids to worry about probably helped.
If I had not been able to achieve a sufficient level of income to support needs plus most wants, then of course it would have made sense to pass up a lot of things that were not absolutely necessary in order to ensure that I had enough to support myself in retirement.
Something might be a "waste" for one person but not for another. Spending money on a latte or nice clothes or a haircut or whatever isn't evidence of wastefulness. It's a choice, which might be reasonable for some but unreasonable for others.
As an alternative-source shopper, I have a closet full of fairly high-end clothing, lots (maybe 30 pair) pair of Ferragamo shoes, Eileen Fisher shoes, nice native american jewelry, and I make my own lattes and iced coffees as they are just better than Xbux. I get my hair done every three months ($150) and do my own nails.
Husband and I use vettix for many of our free concerts/shows (DM me for info) and that is our entertainment.
We don't travel much, now that husband has heart issues, but that's ok. I like sleeping in my own bed and familiar surroundings. I do like going to Santa Fe, husband doesn't so we only go once a year or so and he tolerates it.
I think it depends on one's income and how much one saves and invests before budgeting the remainder for spending on necessities and wants. Also whether one is single or part of a couple, whether one has children, how those children are raised and educated, where the family lives, and lots of other things. Foregoing a few relatively low-cost items over a lifetime makes more of a difference at the lower end of the income spectrum. If one's income is so limited that regularly spending a few dollars on a treat like a latte or a good haircut is going to cause hardship or reduce one's ability to save, that's not really a spending problem. It's an income problem.
So, if one's income is low and one cannot or will not do anything to change that variable, then sure, take a pass on small indulgences and save that money for retirement.
I like lattes and good haircuts and nice vacations and fancy shoes. I was fortunate to be able to maximize my income to afford what I wanted and save for a retirement that provides an income that after 5 years now exceeds my working income. Having no spouse or kids to worry about probably helped.
If I had not been able to achieve a sufficient level of income to support needs plus most wants, then of course it would have made sense to pass up a lot of things that were not absolutely necessary in order to ensure that I had enough to support myself in retirement.
Something might be a "waste" for one person but not for another. Spending money on a latte or nice clothes or a haircut or whatever isn't evidence of wastefulness. It's a choice, which might be reasonable for some but unreasonable for others.
This article is talking to the 75% of Americans who don't have $400 saved for an emergency. For them, buying $4 coffee drinks is an extravagant "want" that would be easy to learn to live without. I have plenty saved for emergencies, and I still don't buy ready-made coffee. I make my own at home for about 20% what the barristas charge. And I don't have to tip.
One tip that's not in the article is to limit your driving. Instead of jumping in the car to go a few blocks to the convenience store or a friend's house or church, walk. You save on gas money and you don't have to pay for a gym.
I did and still do spend money on some of the items on the list. But for me the key was - AFTER - I paid myself. Made sure my 457 was maxed out, paid extra toward my mortgage, and made sure cc was paid off monthly. Only then was it time to indulge myself in the things that I enjoy. Gotta have my coffee shop time daily, sometimes twice daily. Very relaxing to sit and listen to the music and read. Don't like to cook, so I do most lunches out. I love trying new places.
But as one poster stated above, I was lucky enough to have a career that paid me enough to do all that and still have money left over for the coffee's, etc. I'm also single which helped financially.
I agree that the biggest factor is income level, but even at a lower level you still have to enjoy your life, so pay yourself first, but when you have a chance, make sure you treat yourself when you can.
Just wondering, did you manage to save for a good retirement by avoiding these money wasters, or did you do OK still having a latte twice a day and with 25 pairs of shoes in your closet? Or, choice #3, did you spend on all these kind of things throughout your life and now you wish you had put more away for retirement?
Interesting. My life didn't fit that article. I was just always broke from being married and having a husband with bad habits who cost me a lot of money. But I did laugh at the statement that carrying large credit card balances is not really living paycheck to paycheck--it's living above your paycheck. That's exactly how I survived for many years.
I certainly agree with people who spend tons of money on lottery tickets who can`t afford it. You see them in grocery stores, standing there for sometimes a half an hour, scratching ticket, after ticket.
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