Community Chat

[RetRN]

@ScenicMaine, financial goals are so important, you are wise to try to knock down debt. Nothing better than being debt free and having money in savings. Keep up the good work.

[blackhole99]

We are retired, we don't have debt, we just don't buy things and take vacations we can't afford to pay for. I do use the credit card as a convenience, but the card gets paid in full at the end of the month. Our son is only 34 and is very aware of what debt looks like, he sees the pressure his friends who have debt and families are under. I think that might be one of the reasons he is still single.

[RetRN]

Interesting, I heard on news today that divorce rate is down because young people are waiting longer to marry and that the middle child is vanishing because many people are choosing to not have more than two children. 

[haddon9]

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@sandy53 wrote:

When we were working I wanted 3-6 months of living expenses in liquid assets.  Now that we are retired, we don't have to worry about losing our jobs, but I still want a healthy emergency fund in liquid assets.  This year we are looking at more dental implants and probably hearing aids for my DH.  It's good to know there is money in the bank for those kinds of expenses.  

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We are in the same position being retired.  While we don't have much in our checking & savings accounts (enough to pay monthly bills) we do have an IRA with some funds in cash assets to take out whenever we need extra money. 

It's such a different set up compared to when we were working. It took a little while to get used to it.

[VaBelle35]

Dave Ramsey says we should have 3-6 months of expenses in savings for emergencies.

Everyone's expenses are going to be different, so that's a good goal to shoot for.

[Big Joanie]

yes .. being retired and living on retirement income can be an

adjustment .....

[software]

Enough is a relative term.

What is enough?

There is never enough.

Which is why I don't go to these seminars on how to manage money.

When I worked, we had them at work all the time.

People thinking  $50k is enough, or $100k or $500k

Any amount can be wiped out by a disaster or you don't live long enough to enjoy it.

And it all depends on your lifestyle, some of the "richest" people live a modest day-to-day lifestyle.

I don't know anything about you.

But I'll throw out a number.

If you own a home, cars or anything that would cause a problem if it broke down, I'd keep a minimum of $5k in a savings account.     Hopefully if anything were to use up all that in case of emergency, you would have access to other sources of income to make up the difference.

[deeva]

We always followed the rule to live below you means. Because if you live within your means there isn’t enough money for savings.

When I got my first job at 16, my parents encouraged me to pay myself first. Even if it was $5 or $10 a week. I've followed that advise my entire life. 

through out my working years, every time I got a raise, that money went to savings.

[Still Raining]

You may not want to use a bank savings.  There are higher returns elsewhere and you can structure the maturity to keep yourself covered.

[ScenicMaine]

Thanks to you all for the differing views & suggestions.  All of them make so much sense.

I like seeing that some of you have commented on your kids being mindful of debt.  Your kids are fortunate to have learned to live financially responsible from your good parenting advice.  I think financial advisers had usually recommended to have at least 3 mos. of living expenses during emergencies.

Confession:  I wish I had heeded my Mom's advise when I first started working at 15.  That is to save.  Usually I spent what I saved.  NOT GOOD!  Had I taken her advice, I would have been much better off.  Learning a hard lesson, I ended up a few times working 1 full-time & 2 part-time jobs.  In more recent years we're getting to be in a more comfortable, disciplined lifestyle.

One of the reasons I chose this topic, is because I know of 3 different homes that still have quite high mortgages close to 100k, while being in age range of 60ish - 72.  One of them several years ago (when her husband was alive) won a large sum in the lottery.  

For those of you that have always been disciplined with your handling of financial matters & savings, I compliment you for knowing better.

Lessons learned .. easy for some, tough for others.  Keep up with the common sense to continue saving if possible.