I spent all my retirement money, please help! (years, raise, trouble)

[Susan815]

All advice given above is right on target. I now believe in living "debt free" although I didn't always. We have no credit card or private loan debt. Although I was debt free long before I ever heard his radio or Fox 5 show, Dave Ramsey provides an excellent formula for paying off debt. From what I understand, the formula is also outlined on his website.

[MotleyCrew]

Originally Posted by Susan815

All advice given above is right on target. I now believe in living "debt free" although I didn't always. We have no credit card or private loan debt. Although I was debt free long before I ever heard his radio or Fox 5 show, Dave Ramsey provides an excellent formula for paying off debt. From what I understand, the formula is also outlined on his website.

I agree. Buy Dave Ramsey's book, even from a used bookstore online. It will give you step by step programs to help save and become debt free. Never buy something you really do not need to make yourself feel good.

[Fox Terrier]

Originally Posted by MotleyCrew

I agree. Buy Dave Ramsey's book, even from a used bookstore online. It will give you step by step programs to help save and become debt free. Never buy something you really do not need to make yourself feel good.

Or, go to the library

[Curmudgeon]

Originally Posted by mathjak107

i always figure if i cant live on my income then i cant live on 95% of my income either, so i may as well pay myself first like the first bill that gets paid.

I truly believe that's the true secret financial comfort. Being paid once a month made it very easy to save and invest a decent amount BEFORE any of the bills were paid, and they were always paid in full. But we were always "paid" first. Also, despite two promotions, step increases and an occasional COLA increase, we continued to live on the same income for almost 10 years, plowing the "extra" each month into my 401(k). By the time I retired, my pension and Social Security amounted to about 105% each month of what we'd been living on for years and we had/have the wherewithal to live very comfortably in a nice home in a lovely setting.

For the OP, if I had to sum up the "secret to success" in one word it would be discipline.

[brightdoglover]

Two words- "automatic deduction." Whether it's pre-tax to a retirement account, or regular savings to a credit union account, or whatever.
I wish I'd saved ten bucks a week since my first job at age 16 (when I cleared about $40/week. Here after 40 years, that alone would be a real chunk of change and I never would have noticed it missing from my available money.
I think a lot of spending, where "I don't know where it goes" is when you're out and about, buy a takeout coffee, maybe buy a magazine at the cashier's, a takeout muffin, stuff like that. I noticed one co-worker who always brings a $3 coffee into work with her from Dunkin' Donuts. Five nights a week, that's $15, after taxes, so maybe she has to earn some $25 a week to buy those coffees, which add up to over $1,000 a year for something she could pour out of the job pot when she gets to work.
If you're dropping little amounts like that without being aware of them, maybe there are even larger things that you unconsciously do. I personally found, when I was younger and in the city, that eating out/takeout snacks/drinks and oh, my social life beginning and ending in restaurants, well, I spent a huge amount of money.
If you write down *every* cent you spend for a month, you might find yourself not spending it, because you have to think about it and write it down. That won't necessarily change your habits for good, but could show you how unconscious spending can be.
I figured this all out relatively late in life. Wish I'd had a clue earlier on, but no time like the present to change things.

[DulceJ]

Originally Posted by rmillereb09

It seems like every time I get my paycheck, it all disappears as soon as I deposit it in the bank. I have a hard time keeping track of my money, and I don’t know what I have been spending it all on. I am now in huge debt because of this. There is too much going on in my life that I don’t even know where to start. On top of everything else, I am worried about not having any retirement options. I need financial advising in San Diego. My only concern is that I don’t really have too much to spend on one. I browsed online and found
cfgretire.com, SextonAdvisoryGroup.com, and feeonlyadvisor.com.I would like to see if anyone has other suggestions

Everyones advise here has been great and it has been free

You need to make a budget and stick to it and figure out what are you doing wrong

You can do it

Believe me I went thru something similar when my children returned to live with me with my grandchildren

[thrillobyte]

First thing you need to do is GET OUT OF SAN DIEGO!!! It's one of the most expensive places in the country to live. Get into a low-tax state state. Live in Washington and shop in Oregon. Save on both state and sales taxes. everything else will fall into place.

[silk purse]

Originally Posted by rmillereb09

It seems like every time I get my paycheck, it all disappears as soon as I deposit it in the bank. I have a hard time keeping track of my money, and I don’t know what I have been spending it all on. I am now in huge debt because of this. There is too much going on in my life that I don’t even know where to start. On top of everything else, I am worried about not having any retirement options. I need financial advising in San Diego. My only concern is that I don’t really have too much to spend on one. I browsed online and found
cfgretire.com, SextonAdvisoryGroup.com, and feeonlyadvisor.com.I would like to see if anyone has other suggestions

I too recently retired. I discovered quickly how many money eating schemes there are out there especially designed for the retired worker. I lost my home and everything before waking up to the reality that there is no magic pill. Businesses have been surviving the hard times for years by downsizing. I did not think that me, a retired accountant, could have gotten caught by the retirement eaters. But I did. Learning to live on a budget is not easy, but it can be so satisfying once you do. I have very little money, I have bills. I budget every month exactly how much I am going to spend on what (Food, Pet Food, Transport, Cleaning supplies, home maintenance, credit cards, etc.). I make myself stick to it. If you face the challenge head on, you will be amazed at how much you end up with at the end of the month. I have a quiet little home now, on a lake, with wonderful neighbors, and peace of mind. Each month presents new challenges, but that is part of the journey. Don't wait for someone else to come along and do it for you. Apply the logic about finances you taught your children. If you do not know where your money goes, find out. Build a tracking sheet. Record every dollar you spend in a month, if you have to, and what it bought. Most of the time people who do not pay attention to where their money goes have had others do it for them. If you are old enough for retirement, you are old enough to learn. I discovered how much money I was throwing away each month on "fees" for services I rarely used. If you know where your money has gone, you can decide where it is going. I budget how much I pay on credit card bills, medical bills, etc. I do not go over that budget. It works. Buy a book on basic book keeping. The Tax Club on the Internet is a good source of information and they will help you with your taxes. I hope what I have said has been helpful. Cheer up, retirement is an adventure, not a sentence.

[Gandalara]

The OP posted once only on CD - the post starting this thread.

Probably just advertising those websites.

[Minervah]

At age 55 I was laid off my job and couldn't find another full time job for three years. I went through all my retirement savings and everything else I had built up. But I was in major credit card debt along with medical bills. I had no choice but to file for bankruptcy.

But you know what? That taught me a huge lesson about savings. After I found a job I realized that like you I was starting all over again. I was determined to do things differently this time. I moved from a large expensive apartment to a much less expensive smaller one. I didn't buy anything I didn't really need. I have only one credit card and that is for vacations and kitty emergencies. The vacation charges get paid off before I ever leave town. In other words, I was determined to do better than I had before.

I now pay attention to how much things cost. Like you I first tried to get help on line but it was an effort in futility. I now have a highly recommended financial advisor who investing well for me. I heard about him through a friend for whom he had done very well. I adhere to the rule "First pay yourself " so I put a part of my paycheck in some type of savings before I pay my bills. If I find myself slipping and falling back into old habits of over-spending and not watching how I spend my money I just stop and remember what it was like being totally broke.

Being laid off wasn't my fault. Not being able to get a job wasn't my fault in a city where unemployment rates are astronomical even in the best of times. But having outrageous credit card debt and not having more saved was my fault.

You can turn things around but you have to work at it. Best of luck and with all the good advice here I am certain you can do it.