Quote:
Originally Posted by rjpeaks
Hopefully some of the older crowd commented since it would provide some insight for the younger folks..
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I'll give it a shot. Advice from the retired guy.
Max out your retirement contributions. The first one is pretty much a no brainer. If your employer has a matching contribution plan, and you're not taking full advantage..... But max out everything.
Here's the deal. At some point you will have bought yourself invaluable freedom. The freedom to retire early. Or take a job you like even if the salary is low. Or nonexistent. Or to keep doing what you're doing, if that's what you want to do, independent of money. Or go live where you want to, even if the job isn't there. Having choices is a wonderful thing, particularly when you can see the finish line.
This one goes hand in hand. Live a lifestyle that's below what you make, no matter what that is. Frees up money to do the above, plus gives you practice on a lifestyle that you'll be able to afford with a far smaller retirement fund than what you think is needed. Frees you from the mentality that you always need more, something which most everyone finds hard to shake. I always bought less house/car than I "could afford". I earned $100K my last few years, and lived on a $50K income. When I saw how well it worked, the decision to retire was easy and stress free. And I'd added a nice chunk to my savings.
In retrospect those kind of decisions worked really well. I'm not a miser, either, I drive a 1 series, own the nicest house I've ever had, and go abroad every couple of years. On that 50K income.
Here's a book from a guy who took this strategy to an extreme that's not for everyone, including me. Still has its points, and you should take the title seriously.
http://www.amazon.com/Your-Money-Lif.../dp/0140286780