The issue with money…

I’m OK at adulting. I’m not the best – but I’m not crippled by my own inability to handle chores, finances, or life. There are many different sub-divisions of adulting and the one category that is the most easily quantifiable is money.

Money is a wonderful thing that makes the world go round. You can’t survive without it but along with it comes its own set of complications.

I obsess over my retirement once every 6 months or so. I see where I am, how much I need, how much I’m saving, and I’m constantly comparing myself and reading money blogs to see where I need to go and what others are doing.

One of the most popular segments are financial profiles. Recently my father spammed my inbox with a bunch of  “XX year old retiree” “YY y/o saves ZZZ” “YY year old to retire by XX” profiles. I’ve read and enjoy these profiles myself. I understand how these 20 y/o are saving to retire by 30 something, however I also understand that their choices would never work for me.

All 3 of the profiles followed in the same vein. Mid to late 20 year old has a quarter million dollars saved – plans to retire by mid 30s.

How are they retiring that early? Minimizing expenses.

-Eliminate or reduce transportation by biking or walking.

-Live in a downsized living space (airstream, small condo, etc).

-Hobbies and activities cost nothing. They don’t go out to concerts or other expensive activities.

-Reduced cost lifestyle will continue upon retirement – bringing their overall financial need down to bare bones.

Long story short they

-save over 60% of their income.

-plan on living on bare bones upon retirement

 

I’m in my mid 20s, and when I compare my savings to what they have and how much they anticipate having upon retirement. I see that I’m able to meet that goal in my 30s as well – with one key difference. My idea of what my retirement will be is different from their idea of retirement.

My idea of retirement is traveling the world. Freelancing when I feel like it. Maybe opening a bakery. Who knows? I anticipate health problems and medical costs through the wazoo. In the event of marriage – I also plan on having an Indian wedding… and that’s not cheap.

My hobbies are also not cheap. I like painting, going to food festivals, fairs. cooking and baking with some pretty expensive ingredients. I like having the best of whatever is on the market for my kitchen toys. I want a Le Creuset Dutch oven with grill pan lid (~$250) and some of the appliances I own are a kitchen aid stand mixer, a vitamix blender, a brevel smart oven, etc, etc…

I have a thing for nice glassware, and I have no intention of reducing my kitchen goodness anytime soon. Moreover, my philosophy toward money is that I’m gonna spend it anyway. Might as well save and buy the nice stuff that will last forever than impulse buy crap and have it break.

Long story short the people in these profiles plan on retiring on a million dollars and stretching it out until they qualify for SS. (living off roughly 24-35k a year out of savings) That’s totally feasible, but that’s not going to afford the retirement I want.

The retirement I wants has me retiring at 55 – 60 with a few million dollars and assuming I’ll die at 85 after living a full life filled with tons of travel and my sort of fun.

But there are always things we can learn from these profiles. Creative ways to eliminate lifestyle creep. Ways to save, and how investments and savings work for others and how we can make them work for us.

Do you have any idea how you’re going to retire? Any advice or dreams? Comment below!!!

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