How about Mr. & Mrs. average Joe

[Shredder]

My guess is that everyone could retire early if they LBTM and saved 10% a year from their very first job.   That wouldn't be much, but I bet it would do it. 

The only thing that might make that hard now is health insurance. 

Most people just buy way to much junk.   

I agree that there are plenty of people who should save more. And there are lots of people who have made bad choices. But there are lots of people and family's making and living on $7-8 a hour. Pretty tough to save 10% of that. And most of these low paying jobs that don't have health insurance, and now with the new bankruptcy laws if they get sick they're screwed for life.
I know one person who works on a golf course 5-6 months a year, and odd jobs when he can. He has managed to accumulate 30 acres of land, a good used truck, a used motorcycle, and a house he built himself. He lived in a basement house for about 7-8 years till he had enough to built the upstairs. He raises chickens and sells eggs, grows his own veggies, hunts his own protein. He is happy and works hard to survive. He does not live with his elderly mom but does take care of her. His sister can't be found till holidays. I'm sure she will show up when mom dies though. One illness though could destroy everything he has worked for. It's hard for me to see the bright side of that, or fault him if he got sick for not getting a better job or moving..........shredder

 

[Sam]

I agree that there are plenty of people who should save more. And there are lots of people who have made bad choices. But there are lots of people and family's making and living on $7-8 a hour. Pretty tough to save 10% of that. And most of these low paying jobs that don't have health insurance, and now with the new bankruptcy laws if they get sick they're screwed for life.

I think we can safety eliminate the idea of saving at $7-8 an hour. In order to save anything in this country, I think you need to make at least $10/hr, and that's assuming that both husband and wife work.

 

[BunsGettingFirm]

Life throws bolders at everyone. THe ones who survive and prosper are the same ones that get the H*ll out of the way and do something about their situation before the bolder smashes them.

Good story. That's always been my motto. People always ask, "What about friends and family?" Trust me. If these friends are real enough friends, you'll stay in touch with them, and when the situation presents itself, you'll hang out again. However, if these friends are just your run-of-the-mill drinking buddies, then you'll get new drinking buddies. Besides, when the boulders that hit your workplace or industry are big enough, eventually, everbody you know will move on to something else. It's not wise to stay if the career or job is not working out.

By the way, some managers don't like it when you can see the light even with the wool they're trying to pull over your eyes. Their preferred method of layoff management is to make you believe that you have a career with the company and then when they have extracted everything out of you, send you on your way. They also hate that you take classes and try to better yourself because it presents a threat to their power structure and gives you more options to move on to something else.

This kind of attitude is self defeating because what happens is that you're left with a bunch people who are either too lazy to move or too tied down with obligations to do explore something else. I'd rather work with a bunch fo motivated and ambitious people. Yes, they'll want more money and bigger jobs, but I'd rather have that kind of network be they at the same company or not than to be surrounded by a bunch of sheeps.

 

[Andy]

I guess it depends on your definition of "average". I would say the "average" person could make it by saving 10%.

Obviously there are lots of people out there who don't make that. I do have a friend who has always made low wages. She owns an adequate mobile home on a paid for lot. She has done a lot to make it a nice cozy home. She has always lived below her means. She is now in her mid 50's. Semi retired(she cleans two small businesses a week for play money). She raised two boys alone. She has done some traveling-Europe, low budget. etc. So, it can be done.

i also think a lot of people even in low wage jobs waste a lot of money on things they really can't afford. They could at least have some sort of emergency fund, so that every car repair etc wasn't a crisis.

I also have a family member who just lost her husband and the house will probably go to forclosure soon. They made a lot of money, but have no savings, no emergency fund and a houseful of useless junk they had to have. (Along with the coffees etc. ) I think the latte factor is more and more important the lower you go in wages. just my 2 cents.

 

[Aaron]

My parents fall into the “average Joe” category when it comes to savings and retirement.  I’m scared and worried about them and offer as much info/advice as I can but I can’t make them read books and get more information, or force them to stop buying and save more.

I think a lot of it also depends on your personality.  From an early age, I’ve always been interested in reading books, getting an education, and gaining knowledge so I can get out of the rat race, but my parents are not really interested in those things. 

I think another thing is that the “average Joe” has a hard time admitting they have no idea about investing, saving, etc. and feel too embarrassed to ask for help.  If the average Joe 50 year old only has $20K in a 401K, but overhears a younger co-worker talking about his $600K, then that just makes it more embarrassing and unfortunately, probably too late to really do much about it.