I hate to say this but most will not save enough.

[d]

We love this topic, that is, the topic of how most people just spend and don't save, and it comes up over and over on this forum.

Someone might say it's because it makes us feel superior, but I don't think that's it. It's because we're so frustrated that these other people can't see what's happening. We want to say "Hey, look, dummy, if you'd stop buying so much useless crap, you wouldn't have to work all your life." But we can't do that, so we discuss it here instead.

yes, we do love the topic, but i think not for this reason. with everyone else out there spending like there's no tomorrow, it perhaps provides some comfort to us there we are not alone, and bolsters our conclusion that we are acting wisely.

 

[Retire Soon]

With two-thirds of our economy supported by consumer spending, we should be happy they are not saving any money. For those of us who have saved and invested, this has directly contributed to the increase in the value of our stock holdings.

 

[Texas Proud]

Well, maybe they could drop TWO of the THREE country club memberships he maintains, or sell ONE of the THREE homes he owns...........and of course there's that cigarette boat that is drydocked 7 months out of the year........... 8) :

Only drydocked 7 months MY BIL has a sailboat and tells me all the time about other boats docked in his marina that NOBODY shows up the whole year... usually they were bought brand new...

So, if he uses the boat three months, he is maxing out his use

 

[audreyh1]

yes, we do love the topic, but i think not for this reason. with everyone else out there spending like there's no tomorrow, it perhaps provides some comfort to us there we are not alone, and bolsters our conclusion that we are acting wisely.

I agree. We are in a serious minority. Much as I am grateful that there are many others out there consuming like mad and helping my net worth grow, it's comforting to know that I am not alone on this side of the fence.

Audrey

 

[kaudrey]

2B I think said we are taught to spend money.

I wasn't.

Over Christmas, I showed my dad my retirement spreadsheet to get his advice on estimating some future things - healthcare, taxes at different phases withdrawals etc.. I'm not planning to retire for about 15 years (I'm 37 shooting for 52).

He said I would be fine, that people who make such spreadsheets are generally the ones that don't really need them. Of course, he had one (he retired 12 years ago at 57). I just looked at him an said, "I am my father's daughter".

Then he said that I shouldn't obsess, and I don't. He said I should enjoy today too, and I reminded him that in the last year I went to Costa Rica, Panama, and Utah on vacation, that I still have the Honda S2000 (fully paid for, of course, but it is my second car), that I go out to dinner and happy hours with friends etc.

I am lucky enough to have a good federal job (nice salary now, pension later), so I can LBYM but still enjoy things I like to do.

I'm all for balance, but most people (present company excepted) aren't. I don't talk to my friends about these things unless they ask.

 

[mickeyd]

LBYM is really not difficult at all. Most Americans however, seem to need instant gratafication and can't see beyond the hood of their new SUV.

The simple concept that I will do without today so that I will have much more tomorrow, seems like a foreign idea to my fellow citizens. Of course, they can now try to remember all of the things that they purchased 20 years ago and I can now afford to spend four times the amount that they spent back in the day and I only have to remember what I spent my ER money on yesterday.

 

[Rich_by_the_Bay]

LBYM is really not difficult at all. Most Americans however, seem to need instant gratafication and can't see beyond the hood of their new SUV.

Seems so obvious when you are older.

But I do remember the years where debt repayment, inflation, looming college tuitions, need for a bigger (if not huge) house constantly in the background and all that made it hard to save. Yes, we could have rearranged things in our life but, well, it just wasn't that easy to accept that. And we were never extravagant, never lived in a McMansion or drove Beemers.

At least I woke up in my mid-40s when there was still some time to recover. Wish I had done it earlier but no complaints, really.

 

[d]

I showed my dad my retirement spreadsheet to get his advice on estimating some future things ... He said I would be fine, that people who make such spreadsheets are generally the ones that don't really need them.

he's likely correct. some time ago a friend asked if i kept an emergency fund ... he commented that people who did so likely had other funds set aside for anticipated expenses (which i do), and that i'd likely never touch the "emergency" $ ... hope he's right!

 

[lowflyer]

After reading this entire thread, among a few other nice ideas, I've concluded that I've saved enough and should start spending more. In fact, I think I'm going shopping right now...See ya!

 

[jimhcom]

The truth is there will be many of this generation spending their "golden years" wearing a paper hat saying "would you like fries with that sir"?

 

[ladelfina]

With Recession Looming, Bush Tells America To ‘Go Shopping More’

http://thinkprogress.org/2006/12/20/bush-shopping/

"As we work with Congress in the coming year to chart a new course in Iraq and strengthen our military to meet the challenges of the 21st century, we must also work together to achieve important goals for the American people here at home. This work begins with keeping our economy growing. … And I encourage you all to go shopping more." -- GWB 12/20/06


:

 

[dumpster56]

Re: With Recession Looming, Bush Tells America To ‘Go Shopping More’

http://thinkprogress.org/2006/12/20/bush-shopping/

"As we work with Congress in the coming year to chart a new course in Iraq and strengthen our military to meet the challenges of the 21st century, we must also work together to achieve important goals for the American people here at home. This work begins with keeping our economy growing. … And I encourage you all to go shopping more." -- GWB 12/20/06


:

Yes keep buying more and more stuff. I am looking out my window as I type this post and see the remnants of the Christmas buying extravaganza at the neighbors house, empty large toy boxes a trash can piled to the sky full of trash loads of empty boxes. The two kids seem to have recieved every last game toy etc that they wanted. Heck they are 3 and 7 both even got those battery assisted toy vehicles, SHE the Barbie corvette, Him the Nascar Firebird. Funny they do not need to use any muscles it runs on a big battery that NEEDS TO BE PLUGGED IN and recharged. Hummmm, they use more energy than we did , maybe they should have been given BIKES!!!!

Americans kids are so lazy, blame the parents!

 

[rs0460a]

Re: With Recession Looming, Bush Tells America To ‘Go Shopping More’

empty large toy boxes a trash can piled to the sky full of trash loads of empty boxes.

Opportunities for investment!

1. Truck manufacturer (and sub-component suppliers) that pick up the trash.
2. Company that supplies the service (yes, you pay a use tax but somebody is making $$$).
3. Landfill/waste recovery/recycle plants that process this material.

Looks like there is money to be made on both ends of the "material trail" ...

- Ron

 

[Goonie]

The truth is there will be many of this generation spending their "golden years" wearing a paper hat saying "would you like fries with that sir"?

That's been my plan for years!

I figure I'll work something like 4-9am, emtying trash cans and wiping tables.....the kids aren't in the "Arches" that early, so the mess will be minimal.....the retirees are there for the morning coffee clutch....AND...BEST of all......I'll get my breakfast and coffee for FREE!!!!

"Would you like a refill on your coffee, sir?"

 

[audreyh1]

Yesterday I remember one of the "morning" shows talking about strategies for "regifting" and returning stuff, and how now some people sell gifts they don't want on eBay.

My husband says - "The problem is people buy too much damn stuff!!!!!".

Of course, you'll (almost) never hear the TV talking heads suggest the people buy too much stuff.

What a waste!

Audrey

 

[madeit!]

This thread reminds me of an old parable....

"We can not all be eagles...there must also be sheep...for food and for shearing."

 

[Jay_Gatsby]

Cheap? Getting any car for college is a good deal. We have a 2000 Acura that has effectively become DDs car (when she is in town). When she graduates next year we will give her the Acura if she wants it (if she stays in NYC she will probably prefer some cash for cab fair). The Acura has 50K miles, looks great, runs great. Nothing cheap about a a free car.

An Acura with 50k miles is practically brand new. Your DD would be better off asking for subway money rather than cab fare if she stays in NYC. Then again, staying in NYC isn't a very good financial move for most young folks, but they stay anyway.

 

[jazz4cash]

The truth is there will be many of this generation spending their "golden years" wearing a paper hat saying "would you like fries with that sir"?

This concept is very outdated since they went to the combo meals.........the correct quote should be "would you like that supersized?" or "how many apple pies with that order?"

 

[dumpster56]

An Acura with 50k miles is practically brand new. Your DD would be better off asking for subway money rather than cab fare if she stays in NYC. Then again, staying in NYC isn't a very good financial move for most young folks, but they stay anyway.

50K on an acura??

Uh dude sell it!

It has more value than you know!

 

[Zoocat]

We love this topic, that is, the topic of how most people just spend and don't save, and it comes up over and over on this forum.

Someone might say it's because it makes us feel superior, but I don't think that's it. It's because we're so frustrated that these other people can't see what's happening. We want to say "Hey, look, dummy, if you'd stop buying so much useless crap, you wouldn't have to work all your life." But we can't do that, so we discuss it here instead.

I agree. The topic keeps coming up and being endlessly discussed because a lot of us are very very afraid for those who aren't prepared for retirement. And, also, our society in the form of charity and government programs will inevitably bail them out but it will still be a dismal existence to be old and living on a subsistence income. I am not looking forward to seeing that happen to the people I love.

 

[2B]

And, also, our society in the form of charity and government programs will inevitably bail them out but it will still be a dismal existence to be old and living on a subsistence income. I am not looking forward to seeing that happen to the people I love.

It's amazing how well elderly people get by on just social security and a small pension. So many of our younger expenses and wants just disappear. When I see how well my parents coped with very little, my concern is that I've saved way too much but I'm too chicken to pull the trigger before I'm closer to a 95% FIRECalc. There's two sides to the issue.

 

[d]

It's amazing how well elderly people get by on just social security and a small pension.

going forward, i'd not expect soc.sec. to be as generous as it has been, nor medicare. i would expect there to be increased redistribution of wealth (from, not to, our pockets) ... some direct, some more indirect.

 

[Zoocat]

It's amazing how well elderly people get by on just social security and a small pension. So many of our younger expenses and wants just disappear. When I see how well my parents coped with very little, my concern is that I've saved way too much but I'm too chicken to pull the trigger before I'm closer to a 95% FIRECalc. There's two sides to the issue.

My father lives on very little as well. But he has a pension and SS as well as medical benefits from the VA and a paid for house. He never spent a penny sending his kids to college either. Compare his situation with his children who are in their 50s and still have mortgages, are self-employed and pay for their own individual health insurance, are depending on stock market whimsy for their retirement investment incomes, and spent a lot of $$$ sending their kids through college. One bad turn in the economy and retirement dreams will fly out the window along with all the other social support nets that have disappeared.

 

[Lazarus]

Just talked to my Aunt a few days ago. She is in her 70's. She and her boyfriend are living with an $800 budget per month. Paid for house. She says it's no problem. I would think Social Security would generate that much alone. When I was growing up most older people said to have your house paid for when you retire then you will be alright. Could be they were right.

Made me think, I can generate more than that now. What am I working for? I always figured about 2 to 3K per month to spend would be enough for a good retirement lifestyle.

 

[mmg2681]

Made me think, I can generate more than that now. What am I working for? I always figured about 2 to 3K per month to spend would be enough for a good retirement lifestyle.

I wonder the same thing...
Though I am not even close to retirement, I wonder why I have to save millions for retirement (SS will not kick in until 2045) .
With my mortgage my expenses a month are around $1200/month.
Once there is no more mortgage ($550/month) or car payment ($245/month) the expenses will be half.

I always figured that I could live easily on just 24K/year...once the house and car are paid off. Maybe ER will be sooner than I thought...
The biggest expense would most likely be health insurance/HSA.

~M