Now that I’m on Medicare, I thought I’d summarize what worked over the past 40 years.
Minimizing the “Skim” – the Key to Retiring Early
https://retireearlyhomepage.com/minimizing_the_skim.html
intercst
14 Likes
the old habits are hard to give up once you retire.
I see you run around saving a buck or two shopping for those eggs at 79 cents a dozen at Store A, and other bargain at store B and another at store C all a few miles from your house.
My mom, growing up in depression and living through rationing in WW2, then raising 2 kids on ‘middle income’ salary, was a coupon clipper. We’d kid her about her shopping trips where she’d get 40 bucks of groceries for $4, and sometimes we almost thought they’d pay her money to take the groceries away because she had so many coupons. Never changed till she was 80 years old.
Me? Once I retired with 'more than enough’income, I don’t bother to spend a lot of time hunting for bargains or driving here and then there to save 20c on a dozen eggs. Nope. Not worth the hassle. My time is worth more than a buck an hour in savings running here and there.
I shop the Neighborhood Walmart and it always beats the prices in 99% of the products I buy. Kroger is always more and even with their ‘coupon price’ occasionally, with the ‘card’, they seldom beat WM. So if they got avocados for 10c, big deal. Save all of 20c or 30c. Maybe if you buy a lot of meat you get a bargain here and there.
The Aldi’s is 10 miles away and not worth the drive. Save a buck, spend a buck in gas getting to and from it. or 1.5 bucks these days even at 40 mpg.
I can’t find small enough quantities at Costco to make a difference. I don’t need 48 pancakes, or 8 lb bags of apples. 20 tomatoes shrink wrapped in cardboard container. 5 lbs of roma tomatoes. Case of 24 cans of chicken noodle soup. Do stop by there for hearing aids, gas when it’s on the way to somewhere else, etc and occasional big item.
Only coupon I look for and clip is a 15% off at my favorite Mexican TX Mex place - but haven’t eaten ‘in’ there in a long while. Get take out.
At age 75, I got more than enough money (RMD likely up another 10%) this year without needing to spend an hour saving a buck or two. For those looking to save for retirement, probably good way if you shop a lot, can adapt to the specials each week, have a big refrig/freezer, etc.
Half or more of the stuff with coupons is boxes of sugar laden cereal, or cookies or candy or other horrible for you foods. Potato chips and such. Ice cream pops, pizzas, canned crap.
t.
6 Likes
tele analyzes,
Me? Once I retired with 'more than enough’income, I don’t bother to spend a lot of time hunting for bargains or driving here and then there to save 20c on a dozen eggs. Nope. Not worth the hassle. My time is worth more than a buck an hour in savings running here and there.
I’m not spending time “hunting” or driving around. I try to walk 40 or 50 miles per week for the exercise. If I see something’s on sale, it’s not costing me anything in time or gasoline to pick it up as I walk by the store.
As usual, you miss the forest for the trees. You need to concentrate on the big ticket items. Doing the “rent vs. buy” analysis to inform my real estate decisions over the years saved me $1 million or more in housing costs, plus relieved me of the burdens and hassles of owning a home (now there’s a time waster). Spending a few hours familiarizing myself with the Obamacare law netted almost $100,000 in health insurance savings. Even if you don’t need the money, better to keep that windfall in my pocket than let it go to the insurer’s Executive Compensation.
And of course, the biggest advantage I had was that 3-day financial planning course I took as an 18-yr-old Freshman in college that clued me in on financial advisers and insurance salesmen. Most people make a few investment mistakes early and lose a decade or two of compounded investment returns before they figure out they’re getting screwed. By luck or chance, I happened to avoid that and retired early.
It’s probably too late for the geezers posting on this board, but maybe the info will help the grandkids?
intercst
9 Likes
“You need to concentrate on the big ticket items. Doing the “rent vs. buy” analysis to inform my real estate decisions over the years saved me $1 million or more in housing costs,”
Great for you. But not for many others - and probably the majority of folks.
You, being single, and apparently with no visible family, can exist comfortably in a small house and your hobbies take you outside most of the time. (golf, hiking, walking, more walking, etc).
Once you get married and have kids - it’s a different equation.
As for me - I rented the first 9 years of my early career after college. My parents taught me how to spend carefully and wisely by example.
Then I decided you couldn’t really put up to 70 foot towers with big antennas on top - on a hilltop on a ‘rental property’ so bought some property and built a nice 1350 sq foot house - 3 bedrooms /and basement. Worked the world very well and had a blast for the next six years until it was time to move on - no thanks to Neutron Jack wiping out our company division. My parents would stay a month or more in spring and then again in fall. Better than in cramped 2 bedroom apartment for sure (had just retired so had lots of time to spend). Dad liked to ‘putter around the house’. No problem. Had zero grass to cut. Lived in 10,000 acres of woods. Superb view. Ice Tea on the deck in the summer looking out at the mountains 50 miles away from left to right. Better than looking at your neighbors windows out your apartment window or condo.
Yeah, I’ve owned a house or townhouse for last 40 years. Enjoyed it. Parents enjoyed it. Girl friend who spent time here enjoyed it.
Could I have saved yet more millions by ‘renting’ forever? Of course. But so what. How many millions do you need? I don’t need to buy an airplane like you.
intercst:" plus relieved me of the burdens and hassles of owning a home (now there’s a time waster). "
Yeah, but I get the lawn mowed…I’m lazy. The cleaning lady comes twice a month.
And for 5 months a year, I open the door and plop in the pool - do my water aerobics every other day. Don’t need to worry about a bathing suit, nor spend bucks on the community pool - and justify spending hours there for the price.
Oh, and I got a salt system and the pool folks come by and take care of everything. So?
Since you don’t spend your millions, I guess your favorite charities and any relatives will wind up with the tens of millions you’re likely to have in the future since you don’t seem to be spending 0.3% of it a year. Reminds me of Scrooge and his partner.
intercst: “Spending a few hours familiarizing myself with the Obamacare law”
Didn’t exist before you and I retired, and hit Medicare before it became law. But for current folks , yes.
And walking 50 miles a week, and saving 20c on eggs…is still a joke when your portfolio value just increased $300 that day?
t.
4 Likes