3 Common Habits That Are Preventing You From Retiring
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- Опубліковано 1 чер 2024
- There are a few common habits holding many of us back from achieving the retirement we've always envisioned. In this video, I’ll discuss these habits and how to overcome them.
Cutting the Wrong Expenses: We've all heard the advice about brewing your coffee at home instead of buying one at Starbucks. The amount saved by doing this pales in comparison to other financial decisions. For example, choosing a pricier home or car leaves you with hefty monthly payments that far outweigh the price of a daily coffee.
Working Harder, Not Smarter: There’s a reason the age-old mantra of working harder, not smarter, is such a popular phrase. A quintessential hard worker who diligently stashes away $30,000 annually will have less in the long run than someone investing strategically. It's not just about how much effort we put in but also where we channel that effort.
Not Having a Clear Destination in Mind: Many of us have trudged along, diligently saving funds without a concrete idea of what our retirement will actually look like. Without a roadmap, we risk endlessly chasing an ever-receding goal. It’s important to pause, reflect, and envision the retirement we truly desire. By being intentional with our planning, we can transform a hazy idea into tangible goals, guiding every financial decision we make.
Achieving the retirement we envision requires a thoughtful reevaluation of our habits and mindset. By being intentional, envisioning our goals, and aligning our efforts with a well-defined plan, we can overcome common obstacles and set ourselves on a path toward the retirement we truly desire.
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⏱Timestamps:⏱
0:00 - Cutting the wrong expenses
2:39 - Working harder, not smarter
5:53 - Not having the end in mind
8:38 - The next step
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I'm 63, retired for 7 years, and still don't know what I want my retirement to look like! I just followed the conventional wisdom of the day, " you'll need 80% of your current salary ". Fortunately, I only need ~40% being debt free. Once I take Social Security, not only will that go to zero but, I'll have $1k extra each month. But, I'm not in one of those "terrible" situations of having saved too much or worked too long. I'll happily help out younger generations and give to charity.
The coffee savings isn't really the coffee...but rather the mindset of not wasting money on minor convinces at extremely high costs ($8 coffee vs $0.50). Other areas of savings is stop spending $20 a day on lunches, $35 happy hours 2-3 times a week, or using food delivery services every night. All those minor conveniences result in hundreds a month and several thousands per year. Over 30 years, it could be hundreds of thousands dollars of lost opportunity.
I understand this perspective but there’s a flip side. Going out to lunch or happy hour with colleagues and/or friends can benefit you through networking and social interaction. Food delivery services every night sounds excessive but if you don’t love to cook or your spouse is tired or you haven’t had time to shop, eating takeout while cuddling on the couch watching a movie after a long day could make for a much more relaxing evening. Don’t delay all pleasures, especially the little ones, while planning for the future. None of us know how much time we or our loved ones will have.
Thank you, James! You always come from a calm, well-spoken perspective. Really appreciated!
So, I didn't find Game of Thrones until it was six seasons in. What did I do? I binged because I couldn't wait to see what the next episode had to offer. Same thing with your UA-cam channel. Found it recently and went through every episode. Like GOT, I wish I had taken more time. I am now just wondering when James/you are going to release another video for my brain to absorb. I have yet to go back and rewatch GOT but I have watched a couple of your videos at least three times. Love the content!
That's very kind and wonderful to hear. Thank you for watching!
Good habits are hard to make but easy to live with. Thank you, James.🎯
Thanks James, another video with great information!
Great video and on point. I have question and hope James could answer. We retired last year 2023, beginning of 2024 we converted some amount to Roth while keeping ourself within 22% bracket. Does it make sense to increase our convertion to 24% upper limit bracket knowing celling is much higher result we can move much more amount to Roth? Basically the idea is to convert all/as much as we could within the "sweet spot". Yes, it will also increase our Medicare surcharge but I would sacrifice paying extra Medicare surcharge for the benefit of tax free in Roth IRA. Thank you.
Warren Buffett emphasizes long-term investments and compounding growth, while Jeff Bezos emphasizes the importance of not overcommitting to a single investment. It's fascinating to see the varied perspectives on achieving a comfortable retirement.
Absolutely, gathering advice from successful individuals offers a diverse range of strategies. Elon Musk's focus on staying relevant and continuously contributing resonates, as does Richard Branson's emphasis on maintaining a healthy work-life balance throughout one's career. However, applying these principles can be challenging without a tailored financial plan.
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Your first suggestion has a big flaw, in both the car and the house, these are assets that have either residual value or appreciation at the end of the payment period. But the idea is still good. An expensiv european vacation v a more modest vacation to South America or Canada is a better example.
Actually..a better idea is no vacation-trips AT ALL, until you have all of your "basics" covered..and you're completely out of CREDIT CARD DEBT!