SteveR
Moderator Emeritus
- Joined
- Jul 1, 2005
- Messages
- 2,811
I got a late start on saving despite my best intentions. First wife was a spender, not a saver, resulting in some major debt which the judge was very happy to dump on me during the divorce.
Really started saving after the divorce despite paying off 10 credit cards which had been maxed out and buying a modest home to house myself and my son. I lost half my retirement, but since we did not save much it was only a minor loss.
I started saving as much as I could but the main focus was debt reduction and keeping the roof over our heads. It was a very rough 3 years.
Second wife was a compulsive shopper but was very frugal at it. She would shop for hours at a time looking for the lowest price before buying anything. We both worked long hours and had little time for trips other than family visits so we were able to save. We maxed out our 401(k)s and started investing in after tax stocks. We got burned a few times (part of the learning process) but also hit a couple of home runs. Our strategy was buy and hold unless the reason we bought changed; then we sold.
Third wife is a middle of the road type. She like clothes (big surpize!) but is careful about prices. I end up spending more than she does to support maintenance/repairs on our house and cabin. Also, with a bad back I have to pay people to do stuff I would rather do myself but can no longer do. That costs money.
We are nearing RE (my second; her first) in 23 months. Our investments are struggling and we have just gotten back to even from the losses in 2000-2001 with company stock and some other stuff. Long sad story
But, we are forging ahead. I have one more kid to get through college and we are a heavy debt reduction schedule. Our ER budget post ER needs some work as we tend to still spend too much; mostly as justification for long hours and high stress jobs. That will go away when we retire!
She saves 20% and me 12% of our checks in 401(k)s. I have some cash stashed away in short term CDs and some bond ladders but we still have yet to set up a good income stream for ER. Since we will be 55, SS is a long way off and would not help that much. I have a pension (minus QUADRO) that helps but is little more than beer and toy money for now. We save most of it but use it as a pool for big expenses like repairs (air conditioner $2K, roof $5k, etc.)
Saving is hard to do and we have had many discussions on the subject. It is a balance between "treating yourself" and being $ wise about the future. She is not used to having much ...long story.. so she is still adjusting to having a positive bank balance and no CC debt, no car debt and only the mortgages to deal with.( Still a major tax write off for now).
Plan to save and put it where it is hard to get at.
Save each raise and a part of each bonus (need some play money to reward your hard work)
Invest carefully but you gotta pay if you want to play; so get in for the long haul.
Keep a stash of cash (MM and short term CDs) for short and long term expenses. Use this to pay cash for cars and other big ticket items to avoid non-deductable interest payments.
Dump the mortgage when it is no longe giving you a decent tax deduction.
Save for a goal and stick to it. Resist the tempation to raid the cookie jar because you think you need a bigger TV or the latest handheld computer gadget. Wait for sales on stuff and stay out of name brand stores.
Saving and intellegent spending are the yin and yang of funding for life events; cars, house, college and retirement. The energy and comittment you make today will pay off (with interest) in the future.
Really started saving after the divorce despite paying off 10 credit cards which had been maxed out and buying a modest home to house myself and my son. I lost half my retirement, but since we did not save much it was only a minor loss.
I started saving as much as I could but the main focus was debt reduction and keeping the roof over our heads. It was a very rough 3 years.
Second wife was a compulsive shopper but was very frugal at it. She would shop for hours at a time looking for the lowest price before buying anything. We both worked long hours and had little time for trips other than family visits so we were able to save. We maxed out our 401(k)s and started investing in after tax stocks. We got burned a few times (part of the learning process) but also hit a couple of home runs. Our strategy was buy and hold unless the reason we bought changed; then we sold.
Third wife is a middle of the road type. She like clothes (big surpize!) but is careful about prices. I end up spending more than she does to support maintenance/repairs on our house and cabin. Also, with a bad back I have to pay people to do stuff I would rather do myself but can no longer do. That costs money.
We are nearing RE (my second; her first) in 23 months. Our investments are struggling and we have just gotten back to even from the losses in 2000-2001 with company stock and some other stuff. Long sad story
But, we are forging ahead. I have one more kid to get through college and we are a heavy debt reduction schedule. Our ER budget post ER needs some work as we tend to still spend too much; mostly as justification for long hours and high stress jobs. That will go away when we retire! She saves 20% and me 12% of our checks in 401(k)s. I have some cash stashed away in short term CDs and some bond ladders but we still have yet to set up a good income stream for ER. Since we will be 55, SS is a long way off and would not help that much. I have a pension (minus QUADRO) that helps but is little more than beer and toy money for now. We save most of it but use it as a pool for big expenses like repairs (air conditioner $2K, roof $5k, etc.)
Saving is hard to do and we have had many discussions on the subject. It is a balance between "treating yourself" and being $ wise about the future. She is not used to having much ...long story.. so she is still adjusting to having a positive bank balance and no CC debt, no car debt and only the mortgages to deal with.( Still a major tax write off for now).
Plan to save and put it where it is hard to get at.
Save each raise and a part of each bonus (need some play money to reward your hard work)
Invest carefully but you gotta pay if you want to play; so get in for the long haul.
Keep a stash of cash (MM and short term CDs) for short and long term expenses. Use this to pay cash for cars and other big ticket items to avoid non-deductable interest payments.
Dump the mortgage when it is no longe giving you a decent tax deduction.
Save for a goal and stick to it. Resist the tempation to raid the cookie jar because you think you need a bigger TV or the latest handheld computer gadget. Wait for sales on stuff and stay out of name brand stores.
Saving and intellegent spending are the yin and yang of funding for life events; cars, house, college and retirement. The energy and comittment you make today will pay off (with interest) in the future.
You must get a lot of rent from your roommates. Enough to pay the payment on the heloc? and how do you consider the ot? Is that in your 60%.
