early retirement vs. living for today

[aguynamedwill]

hi,

if everything was to remain constant, i'd be able to retire at age 40. Not that impressive, but earlier than 98% of the population I'm sure.

of course things don't stay the same and the figures could change, but something dawned on me recently as I took a day off work. What would I do once I retired? I couldn't come up with an answer.

So I've started wondering, perhaps instead of paying my loans off early, I should take that money and buy a new bike, or a table saw and tools, or something I might like to use TODAY. Perhaps it would be worth working for a few more years so that I can enjoy my life more fully today. I could get hit by a bus tomorrow, shouldn't my last day be enjoyable instead of inexpensive?

Comments appreciated.

 

[Pook]

This was my parents financial plan:

They worked hard. They spent little. They saved a lot. They spent much of their free time repairing what was broken or doing out when something wore out.

Result: At the end of their lives, they still had no money and were still cheap.


Now here is the case of my brother and his wife. They both work hard and they make quite a lot of money. They are doing this because they read the 'Millionaire Next Door'. If they both lost their jobs, they could be living like they are now for the next three years. That is how much money they have saved.

Result: At the end of their lives, they will have money, but what good will it do? They have both lived their lives in cheapness.


I completely understand where you're coming from in not wanting to live life cheaply. Yes, you have college payments that need to be paid. But you will always have payments of some kind. Car payments, house payments, baby payments, girlfriend payments, etc. etc. You'll always be paying for *something*.

Go buy those tools!

 

[ghostin]

I have my own way.

The way i figure it, i am still young and this is the best time of my life so why should i waste it away at work? I figure i will take MASSIVE LOANS and live on those till i am about 50. Then start working to pay em off till i die.




PURE GENIUS





j/k hehe

 

[Unreal]

There is something to be said about living for today. But like most things in life, moderation is the key. Previous generations did not put much thought into retirement until it was already upon them. Making smart decisions and establishing goals early in life are essential.

 

[DjDreamer]

Originally posted by aguynamedwill
I could get hit by a bus tomorrow, shouldn't my last day be enjoyable instead of inexpensive?

I agree with that statement exept for the "inexpensive" part. Since when does enjoyment or happiness depend on money? If you think like that then you'll never truly enjoy yourself because in the back of your mind you will always be thinking "my enjoyment could be more expensive than this".

When you get rid of "materialism" then you'll be able to truly live everdy day as if it's your last without the need to worry aboout future financial consequences...

 

[STR8UP]

It's all about finding a balance.

I spent the better part of my 20's watching my friends piss their lives away while I was cracking the whip. They were out partying almost every night after work until 5am. I went home early because I had to get up and work on one of my properties. I still enjoyed myself but when it came down to it I knew where my priorities were.

Put it this way. The more you sacrifice when you are young (as long as you are learning and doing it the right way) the earlier you will be able to enjoy the payoff. I started busting my ass in my mid 20's. Now it is less than 10 years later and I am already at a point where I drive a fast car, live in a killer bachelor pad, and have the time and the money to travel the world. I am SOOOOO glad I said "no" to my friends sometimes.

In the end YOU have to decide where to draw the line between sacrifice and gratification.

 

[Oxide]

STR8UP is dead on. I myself although subscribed to the "But what is all that saved money good for when you are 60?!" The truth is, you will need that money way before you get old.

Here is an example of balance:

My first year of college, my neighbours were very heavy drinkers. As i became buddys with them we would often drink 5-6 times a week. As a result, i spent a lot of money on alcohol, and little time on sutdying. I ended up with a 2.9 GPA. Lowest i've ever gotten.

Next semester i knew i had to change, so i partied once, may be twice a week. I had NO money becuase of all the alcohol related expenditures first semester. As a result i became a MASTER of getting free alcohol. Second Semester my GPA was 3.7

Sacrifice that night of going to chill with your buds for a night of reading a good book on investmensts. Scarifice the time to go to the beach to go to work. But know when the balance is shifting.

Let me give you another example:

Me and my best friend went diffrent paths this summer:

He came back from college and went back to his old Taco Bell Job right away, and started putting in 30-40 hours each week at $9 an hour.

I tried going back to my old job but they were overstaffed. I looked around for the jobs I liked, dismissing many jobs that my parents would try to toss me, like "Mcdonalds employee" ( After having $14+/hour jobs over the last 2 years i cant go to $6.. plus i am on a diet and cant touch McD's anyway)

So i took my time, and ended up getting a job in sales. After two weeks i was fired. Not a big deal to me becuase the company has a huge turnover rate and treated employees like ****, hence the inital arguemtns that got me fired.

So now it's been 4-5 weeks since i've been out of school. My buddy probably made around $1200 so far.

However recently he has admitted to me that he feels as if he hasnt done ANYTHING this summer.

Me, on the other hand. I've been to clubs more than 10 times, i've went out with different girls and had a lot of fun with them. THe funny thing i've actually made around $800 without doing anything at all (but this is just unusual circumstances). So for me, summer has been pretty great, but i dont have nearly as much money as he does.

But, i took my time picking a job, and ended up getting interviewed for a position with an easy potential of $12-20 an hour (part commission). So in the long run, when i start working, i will probably make MORE money than my friend.


Im not saying what im doing is right. I just want to stress that taking time looking for the best job is very important, no matter what your parents/peer tell you.

compare. Me and my best friend made about the same amount of money each week. He worked 40 hours, i worked 24.

 

[SELF-MASTERY]

Here's my conundrum: At 25 I've already missed out on all the exciting adventures of youth. If I buckle down, live conservatively for the next 15 yrs, retirement is certaint, but I end up missing out on life. I'm afraid that I'll end up a lonely 40 yr old.

 

[crowes22]

I'm a college grad too. This is what I have found: People want you to have a degree but want to pay you 20 fvcking thousand dollars a year possibly without benefits, or shytty benefits. Not even a living wage. And you have to be a nutsucker to progress. I told my last boss he was a fvcking idiot and quit (he is a big time liberal, so there is no question on the idiot issue.)

I've found that if you are willing to sacrifice some of your social life to work (most people won't do this), people will pay you. What I mean is if you are willing to work varying shifts so that your schedule is not defined.

Alot of these 8 to 5 jobs w/ weekends off will start you making no money and for all intents and purposes keep you there, unless you are a nutsucker. Now I have a job where I'm on call alot but I don't care, it keeps me outside, the pay is excellent, and benefits exceptional.

I don't think I was cut out to go into the same building around the SAME people everyday for the rest of my working life. I'd end up killing somebody.

 

[Alpine]

The answer is not to take anybodies advice because there is no correct answer, only yours.

Some people, live for the moment/you could die tomorow. Others take great store in the security offered by saving and delayed gratification.

Try and get it right though, many people make a decsion either way and end up regretting it.

Personally I think you can have your cake and eat it, but you do need discipline.

Find a career that you love, you will become good at it and earn good money. Save more than you earn and invest it well and you've got it covered.

 

[STR8UP]

An ex g/f of mine from a couple of years ago was the total opposite of me. While I was planning my financial future with every decision I made she was planning every decison she made based upon her ability to afford it today. Her attitude was "I'll deal with tomorrow when tomorrow arrives".

She managed to survive, paying her bills and getting by on a small budget. At least she seemed happy.

I admire people who can simply adapt to their situation, whatever life may throw their way, but I can't help but wonder if they wouldn't be happier down the road if they were able to look back and say, "I'm really glad I planned for the future". I personally wouldn't be happy getting towards my 40's and 50's without having some kind of financial security for the years ahead. I want to be able to relax when while I'm still in my 30's!

Find that balance. You can't take it with you, but at the same time if you DO manage to live for awhile and manage to amass at least a small fortune it's nice to know that you can live a lifestyle most people only dream of.

 

[SELF-MASTERY]

I dont think I'll have any balance, looks like I'll be working 80hr weeks again

 

[Page]

I'm going down the REI road b/c I want to be free. More than anything else, I want to be able to live life at my own pace, and you need a steady positive cashflow to do that. I'm willing to go as far as I have to to get it.

 

[crowes22]

Originally posted by Page
I'm going down the REI road b/c I want to be free. More than anything else, I want to be able to live life at my own pace, and you need a steady positive cashflow to do that. I'm willing to go as far as I have to to get it.

Hey Page. What is REI?

 

[diplomatic_lies]

Do you want to work your ass off with business/investing until you're 40 (while your friends have fun), then retire to "enjoy" your life with your boring family and kids?

When you're 40-50 years old, you won't be able to do many things. Pick up women, drink with friends at a bar, climb mountains, drive a jeep into the desert.

Find a balance in your life. There's no point working your ass off so you can enjoy your life in a top notch nursing home. Have fun while you work.

 

[Page]

Originally posted by crowes22
Hey Page. What is REI?

REI = Real Estate Investing

 

[whistler]

Originally posted by diplomatic_lies
Find a balance in your life. There's no point working your ass off so you can enjoy your life in a top notch nursing home. Have fun while you work.

Great thread Will.


I think it's a matter of how much of your time/effort you spend on these three things:

1. You're present happiness.
example: whatever gives you a rush of endorphins

2. Investing in yourself for the near and late future.
example: education -- formal or otherwise

3. Postponing current power/happiness for use in the future.
examples: 401K/IRA, property, stock

Number 3 is just a matter or planning and discipline.

But the secret is that you can combine 1 and 2 by choosing the right career. The best kind is one where you're paid to gain experience or knowledge, or one that is so engrossing to you that you naturally seek out experience/knowledge on your own.

(I'm very biased on this account, but I think the life of a professor is probably the most enviable. The freedom, respect, self-fulfillment, and security (with tenure) is second to none.)

 

[whistler]

Speaking of which...

Pook,

You should sell an ebook. I could easily see people paying 25 bucks for a nice compilation in pdf.

I'm sure Allen owns the copyright to the posts here. That's his right. But he has no privilege to the ideas in your posts, which could easily be re-expressed.

PayPal man. Domain registration is peanuts. Downloads would easily pay for hosting and bandwidth.

The trust placed in you from people on this site probably rivals the public's trust in Google.

 

[Oxide]

I dont think Pook's ebook would be as popular as you think. It is much success here because we are guys who are looking to improve, we soak up the information.. we WANT to learn.

Now when someone else sees "Be a Man, the Book!" by Pookie Master, and read a couple of pages while getting lost in long words, he will put the book back on the shelf.

The posts are worth their weight in gold for those who find answers in them...for everyone else they are just words.

 

[whistler]

Originally posted by Oxide
I dont think Pook's ebook would be as popular as you think. It is much success here because we are guys who are looking to improve, we soak up the information.. we WANT to learn.

Now when someone else sees "Be a Man, the Book!" by Pookie Master, and read a couple of pages while getting lost in long words, he will put the book back on the shelf.

The posts are worth their weight in gold for those who find answers in them...for everyone else they are just words.

I agree. But I still think there would be a market if the price is low. And the internet is key. I think you're right about it being too deep for browsing at a bookstore.

Think of how many people by DYD.

Pook could have a side income with only marginal marketing work once the book is written and the site is up.

Word-of-mouth and loading a page with incoming links to play off Google can both work wonders.

I'd just hate to see him waste the credibility he currently has.

Heck, even after reading most of his stuff here, I'd plunk down $10-15 without hesitation.