Today, they have a growing stash, as well as a bold goal to amass $2 million in savings within the next 15 years.
Both Jeff and Leonora, 49 and 52, are registered nurses with advanced credentials.
Even the decision to enter the medical field was based on the couples' desire to secure high paying, dependable work. They went back to school for their nursing degrees (paying cash of course) and graduated in 1996.
I would like to hit the $1 million mark before I'm 50 (in 13 years) but I'm way behind as I was a SAHM for a couple of years and worked part-time while my kids were small. My husband will be no help in this regards so I'm on my own in my quest. But I think I can do it.
That's assuming that the dollar of today is atleast worth the same 10 years down the line.
Given the depriciation of value that the dolalr has undergone in the past 20 years, I doubt it.
But that only means plans like the ones the OP posted ought to become more of a priority :)
I worked with someone who did a projection for me regarding how much cash I need to accumulate in order to live at the income level I selected in future dollars so that inflation would be taken into account with my planning. I am also not factoring social security into my financial future (hey, if it's there, that's cool, but I'm not going to plan around it). I am relying on myself and myself alone.
I agree with the fact that inflation only makes planning more important.
Like some of the other posters here, I learned about saving and "paying yourself first" while I was growing up. So, it has never been a been a big problem for me. My family was frugal and so am I. We had a few luxuries, but they were "special treats" and not taken for granted. We knew my parents worked very hard to provide those treats and that we would need to work hard to have similar treats for ourselves when we grew up.
I never missed the money I never had.
I agree. It's all about choices. I'm happy with mine, but I look around and see a lot of people who are not. The new car, the expensive shoes, the expensive vacation, etc. that only made them happy for a brief time. My financial security keeps me feeling safe and secure all the time -- and will provide for me well in the future.
I worked with someone who did a projection for me regarding how much cash I need to accumulate in order to live at the income level I selected in future dollars so that inflation would be taken into account with my planning. I am also not factoring social security into my financial future (hey, if it's there, that's cool, but I'm not going to plan around it). I am relying on myself and myself alone.
I agree with the fact that inflation only makes planning more important.
Well, this isn't just inflation alone or monetary supply.
Infact, I have long maintained that the govt. has been lying to us about true inflation and value of the dollar (Tell me, you think the prices we had 10 years ago and the prices we have today are really toe-to-toe with what the inflation is supposedly at?)
Here's a nice (albeit slightly dated) article from the Economist:
In 1913, at the height of its empire, Britain was the world's biggest creditor. Within 40 years, after two costly world wars and economic mismanagement, it became a net debtor and the dollar usurped sterling's role. Dislodging an incumbent currency can take years. Sterling maintained a central international role for at least half a century after America's GDP overtook Britain's at the end of the 19th century. But it did eventually lose that status.
If America continues on its current profligate path, the dollar is likely to suffer a similar fate. But in future no one currency, such as the euro, is likely to take over. Instead, the world might drift towards a multiple reserve-currency system shared among the dollar, the euro and the yen (or indeed the yuan at some time in the future). That still implies a big drop in the long-term share of dollar assets in central banks' vaults and private portfolios. A slow, steady shift out of dollars could perhaps be handled. But if America continues to show such neglect of its own currency, then a fast-falling dollar and rising American interest rates would result. It will be how far and how fast the dollar falls that determines the future for America's economy and the world's. Not even Mr Greenspan can forecast that.
Here's the thought: The majority of our currency holdings are in the central banks of Japan and China. What if tomorrow, there were an incident with China; a hardline government comes into place and decides to drop off their foreign currency reserves and flood the market with dollars? Seeing this, Japan follows suit to stop what losses they can?
Many have claimed that local, commercial spending is good for the economy. Well, yes and no. Commercial spending certainls aids businesses but the counterpart of high consumption is low savings. What does low savings do?
Since 2001, however, the current account deficit has reflected a widening government deficit, not strong private investment. The U.S. now borrows from abroad to allow the government to run a large fiscal deficit without crowding out private investment, even as growing consumption (and necessarily, very low private savings) reduce the United States’ ability to finance the fiscal deficit and private investment domestically.
In other words - to maintain the current pace, it forces the govt. to source it's money from abroad (and also continue "printing" money at home, driving the value of the currency further lower). Sourcing money frmo abroad = back to square one.
EDIT : Quick look at current account deficit and how debt affects monetary value
The current U.S. international debt path is damaging to future U.S. living standards. This damage has not
materialized yet because interest rates have been at historic lows in recent years, making U.S. borrowing extraordinarily cheap. However, it would be irresponsible for economic policy makers in the United States to bank on these low rates. As soon as the interest rates begin to rise in the United States, the full consequences of the U.S. international debt problem will have real bite.
Sorry for dragging the thread a little off topic :imbar
Well I plan on doing it. I already have a plan to use my nursing earnings to finance my business ventures. They includes three seaside hotels in the Bahamas, a handbag/wallet/diaperbag company (my mum as designer), an offshore call center, stock market investments, and substantial real estate holdings in 4 countries.
I can easily get by on less than $30K for a few years while investing/saving the rest. I've done it before on WAY less.
Mary Hunt and David Bach are two of my favorites. Yep, watch that "Latte Factor."
Here's the thought: The majority of our currency holdings are in the central banks of Japan and China. What if tomorrow, there were an incident with China; a hardline government comes into place and decides to drop off their foreign currency reserves and flood the market with dollars? Seeing this, Japan follows suit to stop what losses they can?
Until China changes its fiscal policy, it simply cannot do this. The Yuan is currently pegged to the Dollar. And, China's economy is intricately tied to ours. The fact that every trinket on our market is 'made in China' could be seen as a brilliant pre-emptive strike against such a strategy.
In any case, China could neither tank our currency nor economy without a worse effect visited upon themselves.
As far as Japan, the YEN MIGHT have posed a threat to the dollar . . . BEFORE Japan's staggering recession in the late 80's and all of the 90's. The Yen is simply not its former self.
I would think that only the Euro has the potential to someday provide a challenge. And, that someday is not in my lifetime. So, I would think that has little impact on MY retirement. NOW, if you're 20 or so, MAYBE.
Until China changes its fiscal policy, it simply cannot do this. The Yuan is currently pegged to the Dollar. And, China's economy is intricately tied to ours. The fact that every trinket on our market is 'made in China' could be seen as a brilliant pre-emptive strike against such a strategy.
I know that but I wouldn't draw the same conclusion...
In any case, China could neither tank our currency nor economy without a worse effect visited upon themselves.
I know that and acknowledged it as well.
I was merely postulating that if regime change occurs - they could be tempted to do that. "The Great Leap Forward" cost millions - in lives and money, but that didn't stop them from flogging it for years and years untill they quit. They could be tempted to do it again - if only to see the US implode.
As far as Japan, the YEN MIGHT have posed a threat to the dollar . . . BEFORE Japan's staggering recession in the late 80's and all of the 90's. The Yen is simply not its former self.
Two words - deficit financing. Now where have I seen that before? Hmmm...
I would think that only the Euro has the potential to someday provide a challenge. And, that someday is not in my lifetime.
That's an optimistic take. The Dollar declined 42 and some odd percent against the Euro in 2003-2004 alone. It's depreciated some 25% against the Canadian dollar.
In the past 40 odd years, the dollar has lost about 70% of it's value. During this same period, American society in general has become more consumptive and more debt ridden and less savings oriented. This was encouraged by many in the govt. - active "devaluing" of the currency to make the dollar mroe attractive (hence making exports attractive). But unfortunately, exports have largely stagnated while imports have soared [all them trinkets made in China helped some of that, wot?] - the trade balance they attempted to fix by devaluing the currency became worse!
Up untill now, this hasn't really been a problem. For one, was the low interest rate as pointed out earlier. The second, is the Dollar status as "reserve currency". Since "reserve" currency is 'universally' acceptable, it makes the premiums paid to debt holders lower (since risk is lower). The US currently saves $10-15 Bn/year on $2 Trn of international debt because of this principle.
Now, a good chunk of the reserve market is handled through the world oil bourse/markets. What if Iran and Russia were to switch to the Euro as their reserve currency for their energy markets? [iran is already considering this. See here]
I know your just being funny, but saving is important- to us, anyway. You can save money and have fun, too, grasshopper ( ).
DH and I started late, so we save close to 20%. We skim the money off first because we found that one spends what one has and that there is never anything left over. After a bit of adjustment, we now do not miss it at all.
We bought less house than 'they' say we can afford and buy only "nearly new" cars. We like to travel, but have found a $200.00 hotel room is not $115.00 more fun than an $85.00 one.
We do some coupons but find it time consuming so don't put so much effort into that as we did before. I hit an all time high of $40.00 off a 100.00 grocery bill once. That's two 20.00 bills in my pocket and not Kroger's.
Wise and thoughtful shopping will still allow a nice house, car, and vacations. We plan to try to retire early and spend that saved money traveling and having fun. I guess we see work as a means to an end, not something we want to do until the end.
Gah- dropping dead at work at 75- who wants that?
Yea, I appreciate the value of a dollar. At the same time it's pathetic to see these little old blue haired couples FINALLY buying their big dream home after the children are gone and they really don't have a lot of use for all that space, anymore. It's all bass aackward and a can't win for losing deal.
yea, i appreciate the value of a dollar. at the same time it's pathetic to see these little old blue haired couples finally buying their big dream home after the children are gone and they really don't have a lot of use for all that space, anymore. it's all bass aackward and a can't win for losing deal.
happy balance is important in my view of thinking too. i guess my problem might be wanting to spend and play now and later too. i was always frugal and a big saver until i married dh who loves to work and loves to spend everything he makes along with debt too. the thought of being financially prepared for retirement is on my mind everyday. i have come to the conclusion that if we are going to have more than company vested retirement and social security (that probably won't exist then) it will have to be up to me. it'll work, it would just be faster if i could get him to but into my conservative ways.
I'm not super great with money, but my hospital does have a matching retirement program where they contribute 6% of my income annually if I am willing to contribute 2%. So, I just have $70/week taken out of my paycheck (which is more than 2% of my income, don't worry!). I haven't even been there a year and I already have about $5,000 in it. I think it's a good start for a 23 year old. Good luck to all of us savers!
dh who loves to work and loves to spend everything he makes along with debt too. the thought of being financially prepared for retirement is on my mind everyday. i have come to the conclusion that if we are going to have more than company vested retirement and social security (that probably won't exist then) it will have to be up to me. it'll work, it would just be faster if i could get him to but into my conservative ways.
hello there. we're not married to the same man are we? i admit that i have not been judicious in my retirement planning but i have never been a big believer in large debt either and the hubby doesn't seem to be the least bit worried. he thinks he can always make it up later. that is why i say that i am alone in my quest to be financially well-off in my golden years. but i will make it happen.
Hello there. We're not married to the same man are we? I admit that I have not been judicious in my retirement planning but I have never been a big believer in large debt either and the hubby doesn't seem to be the least bit worried. He thinks he can always make it up later. That is why I say that I am alone in my quest to be financially well-off in my golden years. But I will make it happen.
LOL perhaps twins seperated at birth. How do you balance out goals and compromise?
I just want enough to be comfortable and not be a burden to my children but that requires planning in advance and someday arrives too fast not to start as early as possible, wouldn't it be nice if dh thought so too?
jenn_rn_nj
171 Posts
I worked with someone who did a projection for me regarding how much cash I need to accumulate in order to live at the income level I selected in future dollars so that inflation would be taken into account with my planning. I am also not factoring social security into my financial future (hey, if it's there, that's cool, but I'm not going to plan around it). I am relying on myself and myself alone.
I agree with the fact that inflation only makes planning more important.