No Savings at 40, but I Retired by 60

http://finance.yahoo.com/news/first-per ... nance.html


"I was living in Los Angeles. Had a great job at 40 and was not putting one penny away in savings. I was spending money faster than I was making it, living the single life. I knew every bar and restaurant along Hollywood Boulevard, and bartenders and waitresses knew me by name.

Now I'm living a comfortable retirement. What turned me around?

Reality. I noticed my co-workers and friends moving on with their lives. While I was stuck in a small apartment, they were getting married, buying homes and establishing a life beyond the nightclub. I knew I had to get serious and start saving.

I tore up all of my 13 credit cards"................................

Pretty good advice (but I wouldn't want to get into the rental stuff). However, even though living in another country might be less expensive, I wouldn't be willing to forego seeing my grandchildren frequently. That would be a deal breaker.

Mtn Gramma wrote: Pretty good advice (but I wouldn't want to get into the rental stuff). However, even though living in another country might be less expensive, I wouldn't be willing to forego seeing my grandchildren frequently. That would be a deal breaker.

Agreed on both counts But what is a young person with goals to do. My folks did alright staying safe with CD's. At today's rates you might as well use cash as kindling.

If I had a 20+ year horizon I would look at rental real estate. If you have the credit rating, money is almost free.

Yep, if you have the guts, real estate I think is a good long term play.

One of my first jobs was working for an independent gas station chain. The philosophy of the brothers who owned them was to buy up old corner lots in rural areas, run them as businesses to pay the mortgages and then sell them when cities expanded out to the areas.

I get the fundamentals:
- don't use credit cards
- save
- live within your means
- talk to a financial planner


There's a few inconsistencies in his story ---

He had not put away one penny in savings at 40 --- but was able to purchase a rental property in Pennsylvania (apparently even paid cash).
How do you pay for a home with cash, when you haven't saved a penny?

The number of credit cards, the limits, and the amount he said he owed - doesn't really add up.

He sold a home - but wait - he was paying rent --- how do you sell something you rent? (brilliant!)

How wise is it to buy real estate in Pennsylvania when you live in California?

The story is true even if the documents are forgeries. Ask Dan Rather. :rofllol :rofllol :rofllol :rofllol :rofllol :rofllol :rofllol :rofllol :rofllol


Sometimes I crack me up.

bailey bud wrote: I get the fundamentals:
- don't use credit cards
- save
- live within your means
- talk to a financial planner


There's a few inconsistencies in his story ---

He had not put away one penny in savings at 40 --- but was able to purchase a rental property in Pennsylvania (apparently even paid cash).
How do you pay for a home with cash, when you haven't saved a penny?

The number of credit cards, the limits, and the amount he said he owed - doesn't really add up.

He sold a home - but wait - he was paying rent --- how do you sell something you rent? (brilliant!)

How wise is it to buy real estate in Pennsylvania when you live in California?

Credit cards are great for people with self control...so it is good for a select few of us. If you have every tried to control your spending by putting less money in your pocket that evening, you have already lost and are a poor candidate for a card.

Credit cards are great...they are simply the ability to give yourself a pre-approved loan whenever you need it. I have started many a venture on a CC. Most people are not good resource (money) managers (see SS retirement program and the constant need by many for public assistance despite good health and ability)