Author Topic: newbie  (Read 2211 times)

HAULIN3

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newbie
« on: February 17, 2014, 08:11:07 AM »
I've Dave Ramsey'd for the past 7 months, and happened here by accident. I've read books by the minimalists and am taking everything I've read here and there and everywhere very seriously since August.  I've always done our banking (never budgeted) over the last 30 years and thought I was doing great. (we didnt save a lot, but always made our payments) I'm just trying to do better in these areas, and I have my husbands support, but hes not "all in"... sometimes he looks at me like I'm nuts:)  ANYWAY,

August 1st we were in debt $260,000 and today $181,000. (car and house only)  I have made progress.  I'd doing a strict budget and really plan to be debt free in just a couple years.

If we were to sell our boat and house, we'd walk away with probably $125,000 in cash, but this is NOT an option with dear husband.

I'm 50 and he's 53.  We've only got about $250,000 in our 401K and $1,000 in savings.  We earn about $125,000/year.

Do you think even though we dont become total Mustachians we can still retire at some point? We somehow had adopted the "we'll never retire" attitude... 

It's amazing how I can't even purchase things with the same thought process I used to.  I even walk around my house and get rid of things randomly.. It looks so nice and uncluttered these days!  (and I fired my cleaning lady)  It's amazing what this site has done for me.. I'm so thankful to have found you.
Man, if I knew then what I know now... wow...

nereo

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Re: newbie
« Reply #1 on: February 17, 2014, 08:46:12 AM »
I've Dave Ramsey'd for the past 7 months, and happened here by accident. I've read books by the minimalists and am taking everything I've read here and there and everywhere very seriously since August.  I've always done our banking (never budgeted) over the last 30 years and thought I was doing great. (we didnt save a lot, but always made our payments) I'm just trying to do better in these areas, and I have my husbands support, but hes not "all in"... sometimes he looks at me like I'm nuts:)  ANYWAY,

August 1st we were in debt $260,000 and today $181,000. (car and house only)  I have made progress.  I'd doing a strict budget and really plan to be debt free in just a couple years.

If we were to sell our boat and house, we'd walk away with probably $125,000 in cash, but this is NOT an option with dear husband.

I'm 50 and he's 53.  We've only got about $250,000 in our 401K and $1,000 in savings.  We earn about $125,000/year.

Do you think even though we dont become total Mustachians we can still retire at some point? We somehow had adopted the "we'll never retire" attitude... 

It's amazing how I can't even purchase things with the same thought process I used to.  I even walk around my house and get rid of things randomly.. It looks so nice and uncluttered these days!  (and I fired my cleaning lady)  It's amazing what this site has done for me.. I'm so thankful to have found you.
Man, if I knew then what I know now... wow...

Hello and welcome

I've only been getting into the mustachian-lifestyle myself over hte past several years. To answer your more pressing question, yes I think you guys can retire someday.  Whether it's in 5 years or 15 depends on you and what steps you take.  Having $250k in your 401(k)s is not a horrible place to start from, and having $181k in debt (house and car only... no other debts lurking?) is easily surmountable.  $125k/year income gives you the chance to save huge chunks of cash in just a few years IF you're willing to cut the spending side (which will likely include a fine hard look at your spending)

MMM wrote a two-part article on how to get your spouse onboard (http://www.mrmoneymustache.com/2012/03/22/selling-the-dream-how-to-make-your-spouse-love-frugality/) - you might want to start there.  Also plenty of advice on this forum.

I'd plant the seed with your husband about "woudln't it be great to be able to be financially indendant before we were 60?".  Then systematically attack all forms of your spending.  Maxing out your 401(k)s and IRA contributions will give you the double benefit of a tax-break and increasing your 'stach. 

good luck, and when you're ready for some real criticism, feel free to post your budget numbers.  Just be prepared for lots of comments like "Holy s&*$ you're spending how much on X!  move/sell/pay off ASAP.  "

best
n

Cinder

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Re: newbie
« Reply #2 on: February 17, 2014, 09:14:41 AM »
Welcome to the forum!  Agree with the above, once you feel comfortable enough, make a journal over in the journals thread or post it here.  There is a good sticky at the top of the page on 'how to do a case study'!

You ended up here, you've turned things around, and now you are looking at how to further optimize, keep it up!