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Old 07-12-2018, 10:06 AM
 
4,686 posts, read 6,179,038 times
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Many have all heard that term by Dave Ramsey..Live like no one else, so later on, you can Live like no one else .

My question is how many here would be willing to live on a bare minimum now in their younger and middle age days, so you can live really nice when you retire?

I know there is always the, what if Im not around to enjoy all that Im waiting for later on and no one can predict that, but wouldnt it be better to travel when you are more agile and less health issues in your 30/40/50's vs trying to see and really experience life in your 60/70's?

I know many that dump as much as they can in 401K and invest like crazy and it probably will payoff and they can retire early, but are those years or even decades on not fully enjoying life worth it to live really nice when you are old?
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Old 07-12-2018, 10:28 AM
 
6,391 posts, read 13,215,206 times
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I live life and save for retirement in a way that allows me to be 100% comfortable. Balance is the key, you cant be miserable saving every cent for the future. You also cant just spend to spend and be broke later in life.
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Old 07-12-2018, 10:28 AM
 
2,189 posts, read 2,617,457 times
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Oh yes it's worth it for me. Due to some big financial mistakes in my 30s I was forced (not willingly) to live on a bare minimum the rest of my 30s because there was no way to get out of debt except by living on a bare minimum. Then when I paid off my debt after a few years (by doing the second/third job and snowball thing even before I heard of it from Dave Ramsey) I lived on the same bare minimum in my 40s while sending the same monthly payment that used to go to others like creditors, to my own 401K and taxable accounts to buy low cost stock index funds, and am now very happy to willingly live frugally but nicely in my 50s and beyond.
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Old 07-12-2018, 11:03 AM
 
Location: A blue island in the Piedmont
34,244 posts, read 83,476,952 times
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Quote:
Originally Posted by SAAN View Post
Many have all heard that term by Dave Ramsey..
Live like no one else, so later on, you can Live like no one else .
Well, some have. I've never read any of his books or seen any of the videos.

But he's NOT the first or only one with the basic idea he promotes. Is he?
I bet even in your own life you've known someone promoting the basic ideas.

Quote:
My question is how many here would be willing to live on a bare minimum now...
How about living on LESS THAN what their contemporaries are choosing to allow to drain through their fingers?
More reasonable language? Less hype?

The answer? Clearly far fewer are willing to make it work than will make that choice to try.
In a sense... making it all work almost requires that most others don't even try.

Quote:
I know many that dump as much as they can in 401K and invest like crazy
and it probably will payoff and they can retire early, but...
But what?
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Old 07-12-2018, 11:05 AM
 
Location: Lower East Side, NYC
2,970 posts, read 2,638,498 times
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Moderation my friend. I max my 401k and IRA, live off the rest, and invest the difference at the end of the month. YOLO with a bit of book smarts. If I have some complication, I want to at least be on my dieing bed knowing both: I've had a good life, and, had I lived, I would have lived well.

I also have no debt, so YMMV. I paid off my student loans at 23, but I've said that before.
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Old 07-12-2018, 11:05 AM
 
Location: Florida -
10,213 posts, read 14,908,146 times
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I like the philosophy of "not trying to keep up with the Jones's now" (aka: "Live like no one else now") ... as a means of living better later. I'm not sure this means one must live a subsistence lifestyle now, but, rather, unlike most people, to live within one's means and not incur more debt than one can comfortably manage.

Throughout our working lives, we often observed people who had almost the same income as we did, but, who lived as though they earned 2-3-times as much. Although we sometimes wondered where they were getting the money, in reality, most of them were 'in hock up to their eyeballs!' --

They may have occasionally created an impression that they were better off than they were, but, I'm not sure anyone else really cared. The paradox of living beyond one's means to create an impression- is that others generally too busy living their own lives, to be overly impressed with yours!
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Old 07-12-2018, 11:11 AM
 
Location: IL/IN/FL/CA/KY/FL/KY/WA
1,265 posts, read 1,433,253 times
Reputation: 1645
Quote:
Originally Posted by SAAN View Post
Many have all heard that term by Dave Ramsey..Live like no one else, so later on, you can Live like no one else .

My question is how many here would be willing to live on a bare minimum now in their younger and middle age days, so you can live really nice when you retire?

I know there is always the, what if Im not around to enjoy all that Im waiting for later on and no one can predict that, but wouldnt it be better to travel when you are more agile and less health issues in your 30/40/50's vs trying to see and really experience life in your 60/70's?

I know many that dump as much as they can in 401K and invest like crazy and it probably will payoff and they can retire early, but are those years or even decades on not fully enjoying life worth it to live really nice when you are old?
It's a valid question and one that every individual must assess for themselves.

The question for me as a generally frugal person who LOVES to travel (which isn't cheap), I have to get creative to meet my goals.

I've never agreed with Dave as his methodology reads more to me as Alcoholics Anonymous for credit rather than that of preaching from the financial literacy pulpit as I believe it should be. Instead of teaching a man to fish, he's taking the fish away from the man and telling him that he gets to starve because he didn't know how to properly ration the fish.

First, people need to educate themselves extensively about credit and finances in general. It's not taught in schools, and you have to be motivated to do it.
Secondly, people need to create a retirement plan. How little can you live on in retirement?
Then, people need to assess a budget that aligns with the above plan.
Continuously massage the budget and learn about needs vs wants and prioritize the wants and drop off the lowest priority wants while finding cost cutting opportunities on the needs.

The way I manage traveling cheaply is with credit card churning and arbitrage opportunities with card spend. I took my wife to a 5-star resort in Costa Rica last September for a week (plus an extra unscheduled day due to our returning flight to MIA being cancelled due to Hurricane Irma), and our total cost for the trip was <$500, including airfare, hotel accommodations, food and rental car. Paying cash for that trip would have exceeded $5,000.
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Old 07-12-2018, 11:28 AM
 
1,115 posts, read 1,476,224 times
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I struggle with the concept of spend like crazy and get into debt because you're young and you deserve it. I'm a big saver, having maxed out my 401k for a few years now on an income that most non CDers would think it was not possible to do. However I don't deprive myself. I have fun when I want to and go on trips as I please. My biggest splurge is on food. However since I started a new job in an industrial area, I'm not going out for lunch 3x a week so even that expense is down.

For me a new car does not get me excited. I drive a 18 year old car that I maintain myself. I hope to get another 10-15 years out of it. The latest cell phones don't interest me. My smartphone is six years old. I wear very basic clothes and shoes and shop maybe once a year.

My biggest non rent or food expense is $80 a month for gas. Many would call me a minamalist and my friends say I can't take it with me when I die. Do I feel like I'm not living 100%? Of course not. I have everything I want except a house. Given my median income in a high COL area, I'll prabably never be able to afford a house without being house poor but that's alright.

Short of flushing money down the toilet I'd have nothing better to spend my capital on. So I save.

PS I'm in my late 20's for reference.
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Old 07-12-2018, 12:31 PM
 
Location: Texas
13,480 posts, read 8,464,600 times
Reputation: 25958
Quote:
Originally Posted by SAAN View Post
Many have all heard that term by Dave Ramsey..Live like no one else, so later on, you can Live like no one else .

My question is how many here would be willing to live on a bare minimum now in their younger and middle age days, so you can live really nice when you retire??
There is no guarantee that someone will live to the age they can retire. It would be a shame to go without all those years, and then die before one could enjoy the money they saved/invested.


I'm also a huge advocate of people traveling when they're young, because jet lag is pretty awful in old age. There are things we're better off doing while we're still young enough to enjoy them and have the energy levels for it.
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Old 07-12-2018, 12:32 PM
 
Location: Texas
13,480 posts, read 8,464,600 times
Reputation: 25958
Quote:
Originally Posted by ServoMiff View Post

I've never agreed with Dave as his methodology reads more to me as Alcoholics Anonymous for credit rather than that of preaching from the financial literacy pulpit as I believe it should be. Instead of teaching a man to fish, he's taking the fish away from the man and telling him that he gets to starve because he didn't know how to properly ration the fish..
I agree. I don't think his advice applies to everyone. He assume everyone goes crazy using credit cards and racking up debt.
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