Was it the little things or the big things that have impacted your retirement finances?

[PeppermintPatty]

Slogging away at the same state government job for 31 years to get that defined benefit pension was the best thing I did for my retirement finances. People who job hopped all their lives and ended up with only social security sometimes say I'm lucky. Luck had nothing to do with it. I had a plan and I stuck to it.

You’re right. Luck has nothing to do with it. Hard work , perseverance and dedication has everything to do with it. My husband worked in the military and then at a company that make packaged food with hot ovens. At times the plant he worked at for 12 hour shifts was 34 to 35 degrees Celsius and he rarely missed a day. I was the one who had my own businesses with NO retirement funds to fall back on and I thank him constantly. At times I don’t know how he did it. We do have a decent retirement fund and soon I’ll be getting my SS to add to it.

 

[StarSong]

Our retirement finances have been positively affected by big things. In no particular order:
Being able to continue bringing in an income at work we quite like when semi-retiring at age 64.
Having a paid off home and children who haven't needed any financial assistance since we put them through college and we kicked in for their weddings.
Receiving nice inheritances from both of our families
Being raised by Depression era parents who taught us how to shop and and taught us two golden rules of household finance: "Waste not, want not" and "Use it up, wear it out, make it do, or do without."

Now both 71, we live below our means (SS plus income) and continue to pad our nest egg in hopes of leaving our children/grands a financial cushion when we pass.

Regarding $1000/month on groceries. Counting all of our regular household supply shopping we probably spend $800-$1000/month, but that includes pretty much everything we use on a regular basis from TP to produce.

 

[papa tiger]

I decided to build a large Garage Workshop. So I cut down 9 large Hickory Trees.
Moved the large storage shed over and built one with a large patio with it. Suddenly
in the Pandemic everything doubled and tripled in price. It ended up over $40,000.
That doubled our Taxes. Interest jumped so paying it off in a year was the best decision.

It sort of slowed me down for a couple of years now. We went out to eat with the Kids Wednesday.
Our side was $90. I ordered Mexican and Mushroom sides. It was $6 in the 70's. ... X 15

 

[papa tiger]

My husband was dyslexic and he had a difficult time reading or understanding much of what he read. I probably read it but, at the time, it was all Greek to me. I should have had more sense and contacted the pension office before we made it "official". We were in the process of selling our house and getting rid of everything (!!!) so we could leave CA and head out in our RV, which we lived in for 3 1/2 years. All big changes at the same time and I wasn't very knowledgeable about financial things at that time. I had always lived paycheck to paycheck. No excuse for ignorance but that's what it was.

Yes, I still have a mortgage. We never lived in one place long enough to pay off a home. He never wanted an apartment or condo. He had lived in several in CA when he was a bachelor and always hated them. He wanted his own yard and the freedom to do whatever he wanted with a house. So, I have a mortgage payment. Luckily, we got it when the interest was at 3.5% and my payment is less then most apartment rates but it still a big chunk out of my SS.

Mom and Pop liked going to Colorado every summer, had a GM Dually and towed Camper, camping in Estes Park Area. One summer they decided they couldn't do it anymore. They have passed. They were lucky! We bought the Dually and Camper from them later. Set it at our private Lake. We all had some good times there too. We had made a life changing decision to buy the lake property in the Fall of 97. Everything
changes when we turn in.

 

[Lethe200]

Both big and little things mattered.

We were forced to file bankruptcy in 1993, two years after buying a house in partnership with a family member. Ruined our outstanding credit records, of course...took us years of budgeting and working hard to recover. But it did make us take the idea of retirement seriously!

Were very lucky that the state pension fund began running retirement seminars for members. We took three years of classes - one series was so full of info on the complex subject of financial planning, we took it all three years in a row! The classes really helped, plus I had worked in insurance and banking, so I was familiar with how to do risk management/appraisals.

It was hard to do budget planning for 15 yrs into the future, but we kept working on it. Lots of little disagreements but that actually helps 'clear the air', to know what's important to your partner vs what's important to you. Those are ALWAYS two different POVs, and compromise is essential.

What's important are not the decisions one makes, as much as going through the process together. You will be doing this your entire lives with one another, and you need a positive pattern established.

Eventually built a lot of leeway into our retirement budget, which was good as some expenses have climbed through the roof over the last 20+ years, such as food, utilities, travel, etc. Although we always focused on a good work/life balance in our careers, our financial decisions were made with consideration for the long-term. This included scenarios of 'what to do when things go wrong' and 'what to do when things go really, really, REALLY wrong.'

Spouse was able to retire early, a few years after I did. He retired just as the big recession hit, January 2010, but due to our planning it had no effect on us except making it a lot of fun to travel when it wasn't crowded! Being conservative about estimating our income sources worked out very well; our retirement income is now comfortably above what we had hoped for. We're grateful for being able to give more to good charities and help both friends and family members when needed. There are few worse feelings than knowing someone deserving whom you love needs some financial help, but you just don't have the extra dollars to offer.

 

[Rich29]

I Tr

 

[squatting dog]

I was a job hopper.Seems like we never stayed in one place for long. (but it was a joint decision) I was however, a self taught heavy equipment and automotive mechanic. Learned it all the hard way. That combined with the carpenter skills I acquired early on without even knowing, (that was my carpenter father and me as cheap labor) served me well in life.

The fact that my uncle taught me plumbing, dad's old German electrician taught me all facets of electrical, and the old Portuguese guy taught me cement work ,combined with the skills learned from pop, (framing, roofing, finish trim etc.) allowed me the opportunity to move anywhere in the country on a whim. My skills, combined with the wife's absolute proficiency in finance has allowed us to live very comfortably and still have money for our favorite pastimes. (hot rods, race cars and fur baby rescue).

Yes, there were lean times, but, now they're just cherished memories, and they prove the old adage... that what doesn't kill you will make you stronger. We have lived in an old country farm house, a modern stucco palace, a trailer, a converted bus, a rental cottage in Jersey, and apartment over a liquor store in NY, and our hand built home. There was also the 55 chevy wagon we stayed in when first married. (shades of my old hearse). Now, here we sit in a comfortable house in Florida that we own outright. We eat well, can
still rescue fur babies and our needs are mighty simple.

All in all, how do you say it? What a long strange trip it's been.

 

[OneEyedDiva]

I gave up red meat many years ago too and I'm sure that has saved me a lot of food money over the years.

I also recently gave up Diet Soda, which is a real comfort drink for me in summer, but I read a couple of articles about how Aspartame, for reasons researches do not fully understand, actually does cause blood sugar spikes just like sugar does.

I'm trying to avoid getting diabetes like my mother had. Diabetes is tough on the body.

THEN, I read yesterday that Xylitol is another sweetener that causes heart problems!!! https://www.cnn.com/2024/06/06/health/xylitol-heart-attack-stroke-wellness/index.html

Immediately checked my sugar-free gum to see if this is in it. It is not.

I look at young people eating cheeseburgers and think, "Yeah, you have the metabolism to handle that."

Not buying red meat definitely saves a lot of money. I've never been a fan, except for the occasional hamburger. Now I eat turkey burgers and may have a Wendy's hamburger a couple of times a year. I used to be a staunch Equal (aspartame) user. I used a lot of it in powdered water enhancers as well. Then probably a decade ago (maybe longer), I started reading reports that aspartame was connected to cancer in humans, so I gave it up and started using Splenda. I've used xylitol for baking and still have some in the house. but rarely use it. I didn't hear about it causing heart problems.

Good thing you gave up diet sodas. They are supposed to be one of the worse things you can put in your body on a regular basis. I knew a man who worked for Coca Cola. He said if people only knew...they wouldn't drink those sodas. I have soda around 4 or 5 times a year when I go to a restaurant. I keep seeing things these days that say diabetes is not really connected to sugar intake. There are still different schools of thought about that.

 

[OneEyedDiva]

I was watching a channel on Youtube I had subscribed to a while back about this guy that was retiring before age 65 and he wanted to see if he and his wife, who already collects SS, can live mainly on SS. Every month he gives an update on their "living expenses". It's been about 8 months for him in retirement and he started collecting SS in January.

It's interesting because out of their combined SS income each month of $3783, they spend all but maybe $150-$200 a month. They don't have a mortgage but they have big ticket expenses like $1,000/month on groceries for just the 2 of them. They go to Costco/Sam's and buy bulk. Not just once in a while but every week. They also spend $250/month on cable. They spend $250/month on eating out. They also spend $100/month on lottery tickets. They spend all of it.

I kept wondering what his wife would do if he died first. The other day, he had a video addressing that very question that someone had asked and here's what he said. He said his wife would get $2523/month (his current SS) and he has a $200,000 life insurance policy that he pays $160/month for now that she would get. He said she could live for the next 15+ years on all that. So she would be living on $1100/month plus his SS.

My frugal mind says....why spend every penny you're getting now? Why not scale down some of those things you're spending money on and sock it away as an additional cushion. Maybe I'm nuts since I learned a lesson the hard way.

Seems like that couple is spending foolishly. I wonder if they are at least saving or investing what's left at the end of each month. $200,000 isn't that much money, especially if there's medical bills, the need to go to rehab (even for a short stay) or the need for a major home repair. What if his wife lives to be 90 or 95? By then the cost of living will be much higher. If she continues to spend the way they are used to, after he's gone, she may find herself in financial trouble. Same goes for if the husband outlives the wife.

 

[VintageBetter]

Both big and little things mattered.

We were forced to file bankruptcy in 1993, two years after buying a house in partnership with a family member. Ruined our outstanding credit records, of course...took us years of budgeting and working hard to recover. But it did make us take the idea of retirement seriously!

Were very lucky that the state pension fund began running retirement seminars for members. We took three years of classes - one series was so full of info on the complex subject of financial planning, we took it all three years in a row! The classes really helped, plus I had worked in insurance and banking, so I was familiar with how to do risk management/appraisals.

It was hard to do budget planning for 15 yrs into the future, but we kept working on it. Lots of little disagreements but that actually helps 'clear the air', to know what's important to your partner vs what's important to you. Those are ALWAYS two different POVs, and compromise is essential.

What's important are not the decisions one makes, as much as going through the process together. You will be doing this your entire lives with one another, and you need a positive pattern established.

Eventually built a lot of leeway into our retirement budget, which was good as some expenses have climbed through the roof over the last 20+ years, such as food, utilities, travel, etc. Although we always focused on a good work/life balance in our careers, our financial decisions were made with consideration for the long-term. This included scenarios of 'what to do when things go wrong' and 'what to do when things go really, really, REALLY wrong.'

Spouse was able to retire early, a few years after I did. He retired just as the big recession hit, January 2010, but due to our planning it had no effect on us except making it a lot of fun to travel when it wasn't crowded! Being conservative about estimating our income sources worked out very well; our retirement income is now comfortably above what we had hoped for. We're grateful for being able to give more to good charities and help both friends and family members when needed. There are few worse feelings than knowing someone deserving whom you love needs some financial help, but you just don't have the extra dollars to offer.

I love how you had a "we" for this - a real, actual, caring partner. So many women, myself included, had no "we" - only an "I" for retirement planning.

I was married for a long time. So what? There was no "we" there for retirement planning. He did not like to discuss the matter. He was living in the NOW, man, like a rock-n-roll stoner, but he was not a stoner. Maybe just admired that lifestyle?

Then I found out that was all a lie. He had his own retirement plans and they did not include one whit of care about me or our kids.

Ah, but this is also a far too familiar story with many men in my region. Lying, cheating, stealing not listed on their resumes.

 

[VintageBetter]

Both big and little things mattered.

We were forced to file bankruptcy in 1993, two years after buying a house in partnership with a family member. Ruined our outstanding credit records, of course...took us years of budgeting and working hard to recover. But it did make us take the idea of retirement seriously!

Were very lucky that the state pension fund began running retirement seminars for members. We took three years of classes - one series was so full of info on the complex subject of financial planning, we took it all three years in a row! The classes really helped, plus I had worked in insurance and banking, so I was familiar with how to do risk management/appraisals.

It was hard to do budget planning for 15 yrs into the future, but we kept working on it. Lots of little disagreements but that actually helps 'clear the air', to know what's important to your partner vs what's important to you. Those are ALWAYS two different POVs, and compromise is essential.

What's important are not the decisions one makes, as much as going through the process together. You will be doing this your entire lives with one another, and you need a positive pattern established.

Eventually built a lot of leeway into our retirement budget, which was good as some expenses have climbed through the roof over the last 20+ years, such as food, utilities, travel, etc. Although we always focused on a good work/life balance in our careers, our financial decisions were made with consideration for the long-term. This included scenarios of 'what to do when things go wrong' and 'what to do when things go really, really, REALLY wrong.'

Spouse was able to retire early, a few years after I did. He retired just as the big recession hit, January 2010, but due to our planning it had no effect on us except making it a lot of fun to travel when it wasn't crowded! Being conservative about estimating our income sources worked out very well; our retirement income is now comfortably above what we had hoped for. We're grateful for being able to give more to good charities and help both friends and family members when needed. There are few worse feelings than knowing someone deserving whom you love needs some financial help, but you just don't have the extra dollars to offer.

"There are few worse feelings than knowing someone deserving whom you love needs some financial help, but you just don't have the extra dollars to offer."

Oh, I can think of many worse feelings. If that's one of the worst feelings you've experienced in a long life, you're doing pretty good, IMO. Not trying to be catty - just putting things into perspective.