I clean my wallet about once a week, primarily to get throw out or store receipts. However, I'm sure a major cleaning is due and that I have lot of cards in there that I really don't need to carry around.
I've started cooking breakfast in the morning. My son gets up earlier and earlier, so now I can cook and make his breakfast, my lunch and drink my coffee. Then when I come home it's done, we can eat and I can go exercise or do whatever I want.
It's a rule of thumb that you can spend about 4% of your capital each year, and reasonably expect your capital to grow (or at least hold its value). The converse of that is that it takes capital of about 25 times whatever level of spending you want to support.
So, if you can earn, let's say, $5000 a year in retirement, that's equivalent to putting aside 25 times that amount as additional retirement savings. That is, it replaces $125,000 in retirement savings.
Of course, that's only completely true if you can go on earning $5000 every single year right up until you die. But even if you can't, just a few years of earning a bit—and thereby not spending that amount out of capital—can make the difference between having your capital grow or shrink.
Take, for example, someone who retired in 2007. If he'd needed to sell $5000 worth of stock at the bottom of the market crash in 2008, he'd have locked in a 40% loss. But if he'd earned $5000 that year and preserved his capital, by now it would have recovered, meaning that his capital would be not just $5000 higher—it would be $7000 higher than if he hadn't earned that money.
That's what I meant by "more than you might expect."
yes I received an email from Victoria supposedly from careerbuilder though my resume there isn't published for anyone to see...they are from the UK supposedly which already makes me think scam...why would a US company hire someone on the other side of the earth to do this in the US, I am sure there are US companies that do this mystery shopper stuff...I smell a nigerian scam...
Seriously, you guys missed the biggest one by far which is having a paid off house. I have advised several thousand clients over the past twenty years and not having debt into retirement especially when it comes to your primary residence is a major factor in not running out of money. Great tips on here, but be sure to add this one as number seven :)
I always enjoy your posts, Philip. Could you elaborate on the comment, "Just earning a few thousand dollars a year will stretch your retirement savings much further than you might expect"? How little are we talking about, and how much further?
Perhaps this could be a subject for another post. Thanks!
Thanks for the list, Nora! You covered a few things I've kinda wondered about but wasn't quite sure how to deal with as a nomad.
One of my biggest concerns was health insurance and the other was having an address where I could still receive what little mail I get.
We're in the process of donating or selling pretty much everything, minus keepsakes, and it's been actually pretty easy - and fun. I'm excited to see how living with so little will change my life.
About a month ago... after spending about an hour and a half in my best friend's swimming pool and THEN realizing I had left my wallet in the pocket of my swim trunks.
Once it and all its contents dried out, the leather was all crunchy - I really need to condition it - but in the meantime I just took what I needed and slapped a rubber band around them, which I got courtesy a bundle of asparagus in the fridge =0)
Like I said, it's been a month. I still have the rubber band "wallet" happening because it's so much thinner! Contents right now: ID, work badge, 2 bank cards, health insurance card. Voila! And, it goes in the same front pocket as my keys, which are just my car key and house key on a small ring.
With a caseless cellphone on the opposite front, my pants pockets are probably the only thing in my whole life I've managed 'minimalism' out of. =0)
Coat hangers. I have a set amount. When I buy something new, I have to get rid of something that I haven't worn, so I always have the same amount of hangers. If there's an empty hanger in my closet, it's because the item is in the dirty clothes hamper. This works for shirts and pants. This "exact number" method helps me keep my wardrobe in check, and not over stuffed in my closet.
I don't have a dog, but it seems that my friends who do, spend a great deal of money on grooming. Yes, I know it can be a back-breaking task to bathe a dog in the tub but I think the savings would be worth it at least occasionally. I used to have an afghan hound and I bathed him myself and learned to trim his dogsuit too. He may have never been a winner in the dog show circuit but he always looked fine to me, and isn't that what counts?
Most bottled water is just glorified tap water. 2 examples are Dasani & Aquafina. Shockingly made by Coke & Pepsi. I just bought a reusable water bottle and my purifier and boom, I'm saving money hand over fist.
Great points! I like the point to find ways to make some additional income and responding to changes. You're right in saying that earning just a few thousand dollars can help stretch retirement income. In fact, if you're on Social Security, you can make up to $14,640 and not have it affect your benefits. Responding to change is critical, especially in today's economic climate.
Great advice. I would add that maintaining one's health is vital, and the slower pace of retirement makes this much easier. Being fit and eating right boosts one's financial, physical, and emotional security and sense of well-being that is priceless.
Great tips! I couldn't wait to share it out. So important, if you can, to plan for your retirement days. So many get the thought that it's all fun and parties and forget that there is still a budget needed.
Well, I just did this yesterday. I read the article about getting one's gift cards in a single place and I was searching for them in my wallet. LOL
Great website..I am really enjoying your articles. Oh, and I am getting great use out of your archives.
Thanks
Well this is sad, 4 years ago?
Haven't in a while, and now I need to. It's full of tissues - went to a funeral today. :(
I clean my wallet about once a week, primarily to get throw out or store receipts. However, I'm sure a major cleaning is due and that I have lot of cards in there that I really don't need to carry around.
I've started cooking breakfast in the morning. My son gets up earlier and earlier, so now I can cook and make his breakfast, my lunch and drink my coffee. Then when I come home it's done, we can eat and I can go exercise or do whatever I want.
I tweeted.
I liked your FB page.
It's probably been about a month since I cleaned out my wallet.
Breakfast cookies are wonderful!! I used Old Fashioned oats and UNsweetened apple sauce, threw in some craisins and walnuts. YUM! Thanks!!
it is very helpfull to collect interview quastions....
It's a rule of thumb that you can spend about 4% of your capital each year, and reasonably expect your capital to grow (or at least hold its value). The converse of that is that it takes capital of about 25 times whatever level of spending you want to support.
So, if you can earn, let's say, $5000 a year in retirement, that's equivalent to putting aside 25 times that amount as additional retirement savings. That is, it replaces $125,000 in retirement savings.
Of course, that's only completely true if you can go on earning $5000 every single year right up until you die. But even if you can't, just a few years of earning a bit—and thereby not spending that amount out of capital—can make the difference between having your capital grow or shrink.
Take, for example, someone who retired in 2007. If he'd needed to sell $5000 worth of stock at the bottom of the market crash in 2008, he'd have locked in a 40% loss. But if he'd earned $5000 that year and preserved his capital, by now it would have recovered, meaning that his capital would be not just $5000 higher—it would be $7000 higher than if he hadn't earned that money.
That's what I meant by "more than you might expect."
yes I received an email from Victoria supposedly from careerbuilder though my resume there isn't published for anyone to see...they are from the UK supposedly which already makes me think scam...why would a US company hire someone on the other side of the earth to do this in the US, I am sure there are US companies that do this mystery shopper stuff...I smell a nigerian scam...
Seriously, you guys missed the biggest one by far which is having a paid off house. I have advised several thousand clients over the past twenty years and not having debt into retirement especially when it comes to your primary residence is a major factor in not running out of money. Great tips on here, but be sure to add this one as number seven :)
I always enjoy your posts, Philip. Could you elaborate on the comment, "Just earning a few thousand dollars a year will stretch your retirement savings much further than you might expect"? How little are we talking about, and how much further?
Perhaps this could be a subject for another post. Thanks!
Thanks for the list, Nora! You covered a few things I've kinda wondered about but wasn't quite sure how to deal with as a nomad.
One of my biggest concerns was health insurance and the other was having an address where I could still receive what little mail I get.
We're in the process of donating or selling pretty much everything, minus keepsakes, and it's been actually pretty easy - and fun. I'm excited to see how living with so little will change my life.
Great article -- #2 is key. Reducing expenses and strategically downsizing in retirement is often ignored, but the benefits can't be overstated.
About a month ago... after spending about an hour and a half in my best friend's swimming pool and THEN realizing I had left my wallet in the pocket of my swim trunks.
Once it and all its contents dried out, the leather was all crunchy - I really need to condition it - but in the meantime I just took what I needed and slapped a rubber band around them, which I got courtesy a bundle of asparagus in the fridge =0)
Like I said, it's been a month. I still have the rubber band "wallet" happening because it's so much thinner! Contents right now: ID, work badge, 2 bank cards, health insurance card. Voila! And, it goes in the same front pocket as my keys, which are just my car key and house key on a small ring.
With a caseless cellphone on the opposite front, my pants pockets are probably the only thing in my whole life I've managed 'minimalism' out of. =0)
I live alone, so this may not work for everyone.
Coat hangers. I have a set amount. When I buy something new, I have to get rid of something that I haven't worn, so I always have the same amount of hangers. If there's an empty hanger in my closet, it's because the item is in the dirty clothes hamper. This works for shirts and pants. This "exact number" method helps me keep my wardrobe in check, and not over stuffed in my closet.
"I've got all the money I'll ever need, if I die by four o'clock. "
- Henny Youngman
I don't have a dog, but it seems that my friends who do, spend a great deal of money on grooming. Yes, I know it can be a back-breaking task to bathe a dog in the tub but I think the savings would be worth it at least occasionally. I used to have an afghan hound and I bathed him myself and learned to trim his dogsuit too. He may have never been a winner in the dog show circuit but he always looked fine to me, and isn't that what counts?
Most bottled water is just glorified tap water. 2 examples are Dasani & Aquafina. Shockingly made by Coke & Pepsi. I just bought a reusable water bottle and my purifier and boom, I'm saving money hand over fist.
I clean out and reorganize my wallet once a week. That way, I only have the things that I truly need in it.
Great points! I like the point to find ways to make some additional income and responding to changes. You're right in saying that earning just a few thousand dollars can help stretch retirement income. In fact, if you're on Social Security, you can make up to $14,640 and not have it affect your benefits. Responding to change is critical, especially in today's economic climate.
Great advice. I would add that maintaining one's health is vital, and the slower pace of retirement makes this much easier. Being fit and eating right boosts one's financial, physical, and emotional security and sense of well-being that is priceless.
Great tips! I couldn't wait to share it out. So important, if you can, to plan for your retirement days. So many get the thought that it's all fun and parties and forget that there is still a budget needed.