Author Topic: Any other late starters here?  (Read 16924 times)

Vixine

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Any other late starters here?
« on: March 07, 2016, 04:43:33 AM »
Hey all,
Just joined the forums, just discovered MMM ... I have been through some transition (divorce, career change) and just got my you-know-what together regarding my finances a few months ago. Unfortunately, starting a little late. I'm 40 and I'm a single mom, and I've got a load of student loan and other debt because of poor decisions in the past. Nothing I can't handle now that I'm really putting my mind to it, but it's obnoxious. So, I'll probably not be able to retire early, but I'm going to do everything I can to get this debt taken care of and set up a good nest egg going for myself.
Any others in the same boat... late to the party, but taking care of business? I'd love to hear some of those stories!
:)

SMCx3

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Re: Any other late starters here?
« Reply #1 on: March 07, 2016, 04:53:46 AM »
I started saving later compared to most on MMM.  I developed a budget, increased savings, started investing more, and have found myself in a much better place with my finances thanks to the knowledge provided on this forum.

You will be surprised how fast you can make progress once you start taking small steps and putting your dollars to work for you. 

Good luck with your new financial outlook!

BlueHouse

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Re: Any other late starters here?
« Reply #2 on: March 07, 2016, 05:01:46 AM »
Late starter here. Started at age 46. Still working on reining in my spends ways, but at least I'm still working on it.

Torran

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Re: Any other late starters here?
« Reply #3 on: March 07, 2016, 05:14:52 AM »
I second that - it's surprising how fast you can progress once you're on the MMM wagon.

It's taken me about three years - I started relatively late, at 27, and had a heap of debt.

Honestly, the first 6 months was slow progress, and it was a bit dispiriting. I felt deprived, and felt like I was making hardly any dent in my debt anyway.

And then it just sort of snowballed. I paid off debt, started saving (+ interest of course). I unpicked a lot of the consumerist assumptions about how much I really needed = less shopping, even more money to save.

Despite the initial hard work,  I felt that the benefits arrived really quickly.

Good luck. It's never too late!!

alleykat

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Re: Any other late starters here?
« Reply #4 on: March 07, 2016, 05:19:50 AM »
Yes, late late starter. I have been trying for years to stop the impulsive spending.  This year so far has been my best and I am hoping to stick to it.   I found these forums last year or so  I think, but, I really need to start applying some of the principles.  I have always hated handling my finances but I need to make them a priority.  you are not alone.

sleepyguy

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Re: Any other late starters here?
« Reply #5 on: March 07, 2016, 05:53:36 AM »
Pretty late, we're both 37 currently... should be FIRE between 42-43... but as risk adverse as we are... probably will be more like 44-45.  We started making savings a priority about 32 or so.  So yeah... mass 'clownage' before then.

Nickyd£g

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Re: Any other late starters here?
« Reply #6 on: March 07, 2016, 06:09:17 AM »
Late starter here too. 44, single, have a fairly ok admin job but in debt due to a lot of bad decisions plus a period of depression/unemployment.  I'm still working on impulse control, but have made quite a few changes and I'm more aware of what I'm doing with my money.  I probably won't retire early, but like you I want to kill my debt and build up savings so that I can at least retire in comfort.

ender

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Re: Any other late starters here?
« Reply #7 on: March 07, 2016, 06:44:18 AM »
I started saving later compared to most on MMM.  I developed a budget, increased savings, started investing more, and have found myself in a much better place with my finances thanks to the knowledge provided on this forum.

You will be surprised how fast you can make progress once you start taking small steps and putting your dollars to work for you. 

Good luck with your new financial outlook!

I think there are quite a few that start later on here. Perhaps not a majority but definitely a large minority :)

kamille

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Re: Any other late starters here?
« Reply #8 on: March 07, 2016, 07:37:29 AM »
Sometimes I feel late reading the forums even though I only started the path to FIRE at 30. Better late than never and definitely better than average! I thought I was doing pretty good in my 20s: read some basic finance books, paid off student loans, no debt, bought good used car with cash, took public transportation, put 20% down payment to home, had a pension and was putting minimal amount in 403k to get my match. At least MMM helped me not to fear the stock market and that I could revamp by budget for the best use of my money. Good luck with your finance journey!

merlin7676

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Re: Any other late starters here?
« Reply #9 on: March 07, 2016, 08:30:16 AM »
I will be 40 in 2 months and got seriously started just over a year ago. Husband is 43 and is getting better although he's not where I am (yet).
I've always been frugal and not materialistic but man I wish someone had sat me down in my 20's (or earlier) and explained money and debt to me.  Hell I wish I had even come to learn about it 5 years ago...would have made much difference.
But better late than never and even now I think I'm ahead of the majority of people my age.  All my debt will be paid off in May as well as moving to reduce housing cost. So I can kick my savings/investing into overdrive.  Having only net worth of 62K I'm seriously behind where I want to be but being debt free and growing my stash here on out is an amazing feeling. So I won't be able to retire early by much but ideally in 15 years (age 55) if all goes well.

Northwestie

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Re: Any other late starters here?
« Reply #10 on: March 07, 2016, 08:48:46 AM »
Yea, didn't really get started until mid-30s.  Really - took some low paying jobs to get foot in door of competitive field that's not overly lucrative = but awesome.  Then concentrated on climbing for a few years - certainly a low cost life style but didn't help me more towards retirement.

But- as the above posts seem to echo - you can do it with some focus.  We now own the house and have a decent stash.  My best advice - spend less, save more.  Best wishes.

PhrugalPhan

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Re: Any other late starters here?
« Reply #11 on: March 07, 2016, 08:49:00 AM »
Another late starter here.  Thankfully I kept mostly out of debt, just never saved much (ex was big reason why).  Got serious at about 38 y.o.,  and at 53 I now have ~25 years of expenses saved (ignoring medical insurance :( ) with a paid house and future pension that will be more than social security.   Will continue working until GF retires in 3 years.  After that not sure if I will work another 3 years to get pension started immediately or quit & wait until 65 for pension - time will tell.

dreams_and_discoveries

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Re: Any other late starters here?
« Reply #12 on: March 07, 2016, 08:50:21 AM »
I feel like a late starter too - although I've always been reasonably sensible with money, never carrying consumer debt, only student loans and a mortgage. I only started in the last year or so (aged around 34) realising I could retire early and making plans to do that.

Hoping to FIRE at 40 if all goes well, and I've found the focus has started to make my spending much more mindful - I'm happy to spend money on things that bring me value or joy, and am comfortable challenging other spending with a view to cutting it.


TRBeck

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Re: Any other late starters here?
« Reply #13 on: March 07, 2016, 08:55:01 AM »
Started at 35 with debt of ~$25K, and two years and change later, things are going swimmingly. We paid off the debt in short order, surveyed the things we were doing right (we had always had a very small amount of money on autopayments to a couple of mutual funds and education funds for our kids), and started building on what foundation there was. We have cut our cost of living tremendously, and we will be FI in about 10-12 years. Theoretically, I will also have a pension available if I work 17 more years, which is still RE but not way early. Nevertheless, given where and when we started, I'm very happy with our position. There's more we can do to optimize, too. And if I work until my pension kicks in, I'll have a nice financial cushion to ride out my remaining years. Starting late doesn't mean you can't retire early, and it means your retirement will be much easier and more comfortable than if you never figured this out.

onehair

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Re: Any other late starters here?
« Reply #14 on: March 07, 2016, 09:09:27 AM »
Me!! Me!! Age 44 I always followed MMM but only became a forum member and got serious about it last year.  Since joining and listening I am watching my savings grow and also my investments.  My net worth is exactly $20234 it was $18000 and some change.  I have paid off two loans and am working on the remaining two now.  Even though it it isn't a loan I count my tax bill as an ongoing liability just to keep track of it. 


Frugal Convert

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Re: Any other late starters here?
« Reply #15 on: March 07, 2016, 01:10:44 PM »
I'm 41 with a wife and two kids.  I discovered this forum late last spring and love reading it.  Like a lot of folks chiming in I made a ton of bad financial decisions in my 20's and 30's but have quickly recovered.  I wish I could get my wife to get serious as well but she's slowly coming along.  I would recommend hanging around and also reading the articles lots of great financial advice.  I would also recommend not  getting discouraged if things don't progress as quickly as you would like, each of us have our own journey.

Vixine

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Re: Any other late starters here?
« Reply #16 on: March 07, 2016, 01:52:33 PM »
My net worth is WAY in the neg due to student loans and a bit of CC debt. It makes me sick... but I think I spent like 20 years trying to avoid it, and just letting it get worse and worse. That didn't help at all! So it's tough sometimes not to get discouraged.... but I can't compare myself to anyone else. I'm glad I'm on the right track now at least... thanks everyone!

deeshen13

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Re: Any other late starters here?
« Reply #17 on: March 07, 2016, 01:57:34 PM »
Vixine, bop on over to the "Ask a Mustachian" if you get a chance.  There's a thread there titled "how to dig out of a big hole" or something similar.  It is a "late starter" couple who are making some awesome changes in real time.  Might provide you encouragement to see how others are tackling similar issues.  Also, you can post a case study on that sub-forum if you need to.  Good luck.

EDIT: http://forum.mrmoneymustache.com/ask-a-mustachian/newbie-how-to-dig-out-of-the-giant-hole-we-are-in/

dreams_and_discoveries

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Re: Any other late starters here?
« Reply #18 on: March 07, 2016, 02:01:15 PM »
My net worth is WAY in the neg due to student loans and a bit of CC debt. It makes me sick... but I think I spent like 20 years trying to avoid it, and just letting it get worse and worse. That didn't help at all! So it's tough sometimes not to get discouraged.... but I can't compare myself to anyone else. I'm glad I'm on the right track now at least... thanks everyone!

Hi Vixine - it's great to see the range of responses above - compared to MMM we're all late starters - but what really matters is the future, and what we are going to do next.

I'm very much an individualist, and believe what's right for one is not necessarily right for another - I certainly avoid comparing myself to the uber frugal or those with massive net worths and perfect life partners.

Papa Mustache

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Re: Any other late starters here?
« Reply #19 on: March 07, 2016, 02:28:06 PM »
You will be surprised how fast you can make progress once you start taking small steps and putting your dollars to work for you. 

Good luck with your new financial outlook!

THAT! We got serious about debt once we got our careers on track and the debt just evaporated. Student loans? Just zapped one, will pay off the other in a few more months. Might pay off the mortgage in two more years.  LCOL area. No payments on cars, cable TV, etc.

Sure wish we'd been as serious about this 20 years ago... Doubt we'll retire very early - maybe 60=ish - but we'll be comfortable.

Next project: diet. Eating better. Eat good but can do better. Need to lose weight. Just spied a thread about that topic. ;)

Thanks MMM forum and friend "W" for the insight.
« Last Edit: March 07, 2016, 02:33:25 PM by Jethrosnose »

Rosy

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Re: Any other late starters here?
« Reply #20 on: March 07, 2016, 04:09:33 PM »
My net worth is WAY in the neg due to student loans and a bit of CC debt. It makes me sick... but I think I spent like 20 years trying to avoid it, and just letting it get worse and worse. That didn't help at all! So it's tough sometimes not to get discouraged.... but I can't compare myself to anyone else. I'm glad I'm on the right track now at least... thanks everyone!

Vixine, welcome to the forum. You'll fit right in, there are plenty of late starters with big negative SL balances around here. You'll be surprised at the shift in your perception once you look around the forum and begin to realize, that yes, you can do it.
Pick the SL that is smallest or the one that has the highest interest rate and just start - that's all you have to do - start.take.your.first.step.now:)

Maybe you will qualify for forgiveness or maybe you can negotiate a better interest rate or refinance your student loan. You sound like your credit card debt is under control - keep it that way - pay if off each month and start killing that SL.
Good Luck.

Also, look in the subforums - ask a Mustachian and case studies will quickly show you we are all at completely different stages, but we are choosing a new lifestyle to exercise full control of our money.

Classical_Liberal

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Re: Any other late starters here?
« Reply #21 on: March 07, 2016, 05:23:37 PM »
I'm 39 pushing 40.  Found this site a little over 2 years ago after a career change and 48K in student debt (from said career change).  I was discouraged at first too, seeing all these people in their 20's and early 30's being WAAAAY ahead of me. Starting job in new career paid about 45K and has gone up quite a bit since then, but even on an average wage it was absolutely amazing how quickly things progressed.  My net worth has gone from negative 45K to positive 35K in 26 months.  I've been debt free for about 4 months now, expenses are half of 2 years ago, I'm happier, and in better health.  As Nike said back in our day, "Just do it!" You can probably do much better.  I was slow to change and can still see about 500 a month I could trim from my budget, but my laziness has thus far prevented it. 

Best Wishes!

thunderball

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Re: Any other late starters here?
« Reply #22 on: March 08, 2016, 10:25:48 AM »
Chalk me up as a late starter, at 47.  After doing ALL the wrong things with spending, saving, houses, etc. in my 20s and 30s, (and yes, my early 40s!), I've spent the last few years rebuilding.  Along the way I've discovered all that stuff I wanted in my youth is no longer important.  I've also become much more conservative with money.

The switch in mindset really is amazing.  Now we're fortunate to save 25-30% and I'm looking for ways to boost that.  (It is slightly challenging due to where we live - housing is prohibitively expensive but we'd like to switch from renting).

In another month or so I hope to contribute to another "milestone" thread.  Very happy to have found the MMM community!

pachnik

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Re: Any other late starters here?
« Reply #23 on: March 08, 2016, 10:35:13 AM »
I'm also a late starter.  I found this site about 3 years ago when I was 48.

I am so glad that I checked it out and joined up.  My finances were okay when I got here.  But since starting out, I've been saving 35-40% of my income and will be able to retire at least 6 years ahead of schedule.  And I can't honestly say that I miss the money that goes into my retirement fund.  Sadly, before I got here, I was frittering away a third of my income.  :(   I am much happier now too since I know I am doing better financially. 

So even if people find this place too late to be able to retire early, I don't believe there is any downside to getting here later in life.

MVal

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Re: Any other late starters here?
« Reply #24 on: March 08, 2016, 10:46:38 AM »
Sometimes I feel late reading the forums even though I only started the path to FIRE at 30. Better late than never and definitely better than average! I thought I was doing pretty good in my 20s: read some basic finance books, paid off student loans, no debt, bought good used car with cash, took public transportation, put 20% down payment to home, had a pension and was putting minimal amount in 403k to get my match. At least MMM helped me not to fear the stock market and that I could revamp by budget for the best use of my money. Good luck with your finance journey!

Yes, I thought I was a late bloomer too as I'm 33 and have only really been doing this for a little under 2 years. I'm out of debt and building my 401K and other savings, but it still feels slow. However, when I feel discouraged by the seemingly slow progress, I have to put it in perspective compared to my goals just a few years ago. Three or four years ago I had a little goal of quitting my job when my 401K reached $10K. That was a rather arbitrary goal when I thought $10K was a significant amount of retirement savings. Now thanks to MMM, I'm still at the same job and my 401K is about $30K and I have an 8-month "emergency" fund and fully funded Roth IRA, with no end in sight. My new goal is to maybe think about switching careers when my net worth reaches $100K. I'd definitely like to do something else with my work life, but I haven't lined up anything yet that would be as profitable as what I'm currently doing. At least with $100K built up, I feel like that would have some momentum behind it that would continue to build if my income took a hit for a while.

OmahaSteph

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Re: Any other late starters here?
« Reply #25 on: March 08, 2016, 11:24:50 AM »
Yep, late starter at 36 with a modest income, no savings, but not too much debt. I'm still paying it off so it's slow going, but I can already see improvements and the peace of mind is PRICELESS.

MVal

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Re: Any other late starters here?
« Reply #26 on: March 08, 2016, 11:57:42 AM »
I consider myself a late starter(33ish when I joined - 35yo now) but I have made some significant changes in my expending and financial future.  Before I would buy/waste $$ and not think about it. Now I triple check where everything is going and what I'm getting in return.

My plan is to retire by 55yo(would like it to be 52yo). Not the earliest but better than average and the people that I work with who have absolutely no plan of it.

Change your mental attitude towards expending/saving and you will unchain yourself from the consumerism mentality. Best of luck and stick around ;)

Same boat, although I'm hoping to be able to quit regular full time work by 40-ish and then perhaps supplement with part-time work I would enjoy more. This 40 hours a week thing is for the birds!

warmastoast

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Re: Any other late starters here?
« Reply #27 on: March 08, 2016, 12:12:30 PM »
Yes, also a late starter.. about to get divorced, no debt apart from a manageable mortgage which will go when the kids leave home and I downsize.    Not quite sure how much I will get from the retirement funds so my focus now is on building savings to ensure a decent emergency fund,  then investments.  Working freelance and I've managed to reduce outgoings enormously which means I now have 1 month buffer and I'm back using YNAB (I think Imust have been one of the earliest users years back).
Feeling happier and more in control of my future than I've  done for many, many years.  Looking forward to getting to know you all.

Classical_Liberal

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Re: Any other late starters here?
« Reply #28 on: March 08, 2016, 01:45:18 PM »
Yep, late starter at 36 with a modest income, no savings, but not too much debt. I'm still paying it off so it's slow going, but I can already see improvements and the peace of mind is PRICELESS.

Assuming the location in your user name is correct, you can just soak up some good vibes from proximity to the Oracle himself.  Then maybe transfer some of that mojo to this thread to get us good returns for catch up!

Spud

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Re: Any other late starters here?
« Reply #29 on: March 08, 2016, 02:46:53 PM »
I would class myself as a late starter. I found this site when I was already 31 and I'm 33 now. I'm about to move house upsizing, and we're thinking about starting a family. I'm glad that I've bumped into MMM.com this side of fatherhood.

I will try and retire by 60. Not really that early, but I will be a LOT better off than all my friends who are very much living for the moment and rolling around in debt. Fortunately my wife is fully mustachian and together we have hatched a plan to pay the house off in about 15-18 years whilst still stuffing everything we possibly can into our index funds. We have done our calculations based on neither of us ever getting another pay rise. If we did then we would avoid lifestyle inflation completely (I find consumer culture abhorrent) and invest the newly gained excess.

I envy anyone who comes across MMM/ERE/Frugalwoods when they're aged 25 or under. That was MMM's biggest advantage. Not his salary, and possibly not even the fact that Mrs MM was on frugal, but the fact that he knew about this stuff so early in life.

I'm so happy I've learned what I've learned in the past 2 years or so from the online FIRE community. It's completely changed my life and my outlook on life, but has done so very subtly.

Before discovering this site I was minimalist, always debt free, never had a credit card until 2009 (only got it to start building a little bit of a credit rating) and had a 30%-40% savings rate which I guess isn't too bad. The big problem was that I had no investments so the reasonable savings I had were doing nothing for me. They were merely sitting there gaining a pitiful level of interest that was barely worth talking about.

Having found the FIRE community I'm now even more minimalist, have a 65% savings rate and have Vanguard index funds working hard in the background. Still debt free apart from the mortgage and the wife's student loan.

Envious of a lot of the people here, but then I just look around me at the people at work and in my social circle and I smile. Sometimes I feel bad about being smug, but it's not the kind of thing I could shout about.

AvisJinx

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Re: Any other late starters here?
« Reply #30 on: March 08, 2016, 03:27:52 PM »
I actually started started in my 20's, but found myself starting all over again at 45 after taking care of my elderly mother who had Alzheimer's. You just never know what life will throw at you. 

zinethstache

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Re: Any other late starters here?
« Reply #31 on: March 08, 2016, 04:03:22 PM »
I started at 43. We started at the point where DH had been retired a year. We had no debt and had the down payment for rental 1 in hand. I found MMM while reading about real estate. We now own 3 multi's and my FIRE date is set at Jan 2017.

We are listing our primary residence in April. We've purchased our RV setup (paid cash) and plan to buy our last rental property this year. This property has to be setup for a place for us to live in when we return. We want single story, our other multis are all multiple stories. We've been FI since Feb 2015. We are just finishing up all of our exit plans prior to my REing.


LindseyC

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Re: Any other late starters here?
« Reply #32 on: March 08, 2016, 04:42:55 PM »
I'm a late starter at 38. I have a modest income around 45k gross and for the past three years I have been very sick and took a huge hit in that income, losing at least a third each year. I'm doing better now and in 2016 I will pay of my debt accrued from illness, 2017 I will pay off my car three years before scheduled (5 year loan) and also get my emergency fund pumped up. Once I hit 40 I should be saving for retirement.

Being sick was a huge hit, but it also was what got me focused on being frugal and rethinking my life goals.

On my assets side, I do own my own house with a modest mortgage. I have a relatively new (used) car and I have paid off all my student loans and finished a lot of major work in my house which was a foreclosure, so a lot of stuff will not need to be replaced for decades.

My goal is not necessarily to retire early (60-63) but to pay off my house early, save automatically about 30% of my income and live a frugal but happy existence. I challenge myself regularly to be more frugal and simplify my life, without being stingy or miserly.

I really like my job and where I work, I could easily make more money if I commuted to a major city but that would drastically effect my quality of life. I also had a successful side business before I was sick, so eventually I see myself going back to that and probably sticking with it even in retirement as I loved it. I actually don't mind the idea of working in retirement part time, assuming I am the boss and working in my terms.

Dicey

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Re: Any other late starters here?
« Reply #33 on: March 09, 2016, 07:39:53 AM »
Hi LC,
I'm glad to hear that your health is improving. It looks like you hate debt as much as I do. I'm happily FIRE, but 54 wasn't all that early. I did not marry until very late in life, so I like to encourage other single women in their quest.

I'm not positive, but it sounds like you don't have a lot of savings yet. The most crucial aspect of investing is time. Since you're playing catch-up, time is scarce. The sooner you start saving and investing, the better off you will be. I'd politely suggest that if the interest rate is low, you rethink your plans to pay off the car loan early. Instead, make your payments as scheduled, putting the excess into your own savings. While you're building up this savings, it can serve as your EF. Once you've accrued the payoff amount, you can decide whether to kill the loan with a single payment or continue to increase your savings, while making steady payments.

Debt is not always bad. It is also a tool for creating wealth. If you want to boost your retirement savings, start NOW, don't wait until the car is paid off. It's not the standard line, but thinking a little differently could make a substantial difference in your net worth, which is the real goal.

JoRocka

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Re: Any other late starters here?
« Reply #34 on: March 09, 2016, 07:56:42 AM »
Late compared to people who started in college- I'm 32 and climbing out of a depression/retail therapy fueled spending habit.

It's tough- but I Have a great job- and a fabulous CFO (my fiance) and other than our wedding- we are on a great path to be financially independent.   But it's slow. I feel really behind when I hear people talking about early retirement at like 40.  I kind of can't even- I'll be happy if I'm debt free by 35 LOL

RedmondStash

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Re: Any other late starters here?
« Reply #35 on: March 09, 2016, 08:41:54 AM »
Late starter? I suppose. Spouse & I are 50s and 60s now. We had the "spend less than you earn, don't buy things you can't afford, and don't pay interest on anything besides a mortgage" mindset long before I found MMM's site, and were already building a solid nest egg. But the site and forum have helped us whittle down unnecessary expenses and ditch a financial planner whose guidance led to our underperforming the market significantly.

Even if the RE part may not apply to us, the FI part will. Even that puts us ahead of so many people in this country. I worry for many of my friends, and even sometimes think about trying to save extra for the ones who are like family who have nothing saved for their futures.

FIRE me

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Re: Any other late starters here?
« Reply #36 on: March 09, 2016, 10:04:58 AM »
Hey all,
Just joined the forums, just discovered MMM ... I have been through some transition (divorce, career change) and just got my you-know-what together regarding my finances a few months ago. Unfortunately, starting a little late. I'm 40 and I'm a single mom, and I've got a load of student loan and other debt because of poor decisions in the past. Nothing I can't handle now that I'm really putting my mind to it, but it's obnoxious. So, I'll probably not be able to retire early, but I'm going to do everything I can to get this debt taken care of and set up a good nest egg going for myself.
Any others in the same boat... late to the party, but taking care of business? I'd love to hear some of those stories!
:)

There are lots of people older than their 30's here. 12 years ago when I was 46 I got serious about paying off my debt ($20,000) and then saving.

I'm FI now and I'll retire next January at age 59. Not as young as I'd like to be, but I'm still young enough to enjoy it.

smedleyb

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Re: Any other late starters here?
« Reply #37 on: March 09, 2016, 10:26:17 AM »
Late starter?  Perhaps the moniker "born again"is more apt in my case.  Never had debt outside of house, banked 50-60% of income for 7-8 years, but marriage, kids, and consumerist inertia soon whittled that number down to 15-25% over the next 7 years, hitting a nadir of 15% several years ago right when I was turning 40.  It was around that time I realized I was chasing my tail financially which compelled me to turn things around.  Part of that process was embracing MMM's philosophy of money, life, and happiness, which put the "turn-around" on steroids.  Now I'm back to saving 40-45% of my income which is much better but still not optimal given my FIRE aspirations.   And while my asset base may be sufficient to support a rigorously Mustachian lifestyle, it's currently not sufficient to support my family's lifestyle.  Moving to a low tax state and using the ample equity in our home to pay cash for another fine house chops 40% off my slashable expenses.  But it's that other 60% of excess spending -- nice, new clothes for the wife and kids, several fancy vacations a year, and the cost of two older but paid-paid off luxury vehicles, among other indulgences -- which is proving to be a much tougher nut to crack (and creating a slight push-back from my beloved spouse).  The modest goal this year is to whittle down that 60% category by at least 20%, and that's easily doable even after an unforeseen and totally avoidable $2500 car expense slapped me across the face two months ago (good friends don't let moron friends drive their minimally insured vehicles to the store).  Just trying to do better, always.     


Dicey

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Re: Any other late starters here?
« Reply #38 on: March 09, 2016, 10:36:52 AM »
The modest goal this year is to whittle down that 60% category by at least 20%, and that's easily doable even after an unforeseen and totally avoidable $2500 car expense slapped me across the face two months ago (good friends don't let moron friends drive their minimally insured vehicles to the store).   
Smedley, this "frugal weirdo" family will help you get to your goal with ease. Along with MMM, of course.

http://www.frugalwoods.com/

smedleyb

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Re: Any other late starters here?
« Reply #39 on: March 09, 2016, 10:42:34 AM »
Diane C, always one of my favorites. :)

Great link.  Thank you. 

LindseyC

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Re: Any other late starters here?
« Reply #40 on: March 09, 2016, 10:52:41 AM »
Hi LC,
I'm glad to hear that your health is improving. It looks like you hate debt as much as I do. I'm happily FIRE, but 54 wasn't all that early. I did not marry until very late in life, so I like to encourage other single women in their quest.

I'm not positive, but it sounds like you don't have a lot of savings yet. The most crucial aspect of investing is time. Since you're playing catch-up, time is scarce. The sooner you start saving and investing, the better off you will be. I'd politely suggest that if the interest rate is low, you rethink your plans to pay off the car loan early. Instead, make your payments as scheduled, putting the excess into your own savings. While you're building up this savings, it can serve as your EF. Once you've accrued the payoff amount, you can decide whether to kill the loan with a single payment or continue to increase your savings, while making steady payments.

Debt is not always bad. It is also a tool for creating wealth. If you want to boost your retirement savings, start NOW, don't wait until the car is paid off. It's not the standard line, but thinking a little differently could make a substantial difference in your net worth, which is the real goal.

Hi Diane,

Thanks for taking the time and giving such a great response. The plan you outlined is kinda what I see myself doing. The initial debt has got to go this year while it is all interest free, which makes the most financial sense.

The car loan I was going to save up for the year and use that savings in progress as my EF and then make a lump final payment at the end of the year which would leave me debt free and still with a modest EF.  Or as you suggested I could just ride the car payments out for the full 5 years and invest my savings in retirement.

I really go back and forth on this just because I don't know how my health will be and what my ability to make side income and full time hours at my regular job will be. Paying off my car would be more a mental bonus then a financial one, if I had a bad month that is one less bill I would need to stress about.  Stress has serious consequences on my health. That's really the only reason I consider not directing all extra money at retirement as soon as year two arrives.

I think I just need to live 2016-2017, save as much as possible and see how I feel. I definitely recognize though that from a compounding perspective you are 100% right.

Thanks again!

dude

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Re: Any other late starters here?
« Reply #41 on: March 09, 2016, 11:21:19 AM »
I started late-ish, at 32, with @ $80,000 in student loan debt, and another $10,000 in credit card debt.  Granted, I was graduating from a very good law school at a historically favorable time for legal employment.  But I started out making less than $40k in a high COL area, and spent more than I earned for a while.  Got serious somewhere around 38 or 39, but was wise enough to be contributing up to the match (and beyond) to my 401k.  Also made the choice (a wise one, in my eyes) out of law school to forego a high private sector salary in favor of the defined benefit plan offered by the federal government.  I'm now three years from FIRE at age 53. Not too bad.

OmahaSteph

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Re: Any other late starters here?
« Reply #42 on: March 09, 2016, 12:46:04 PM »
Yep, late starter at 36 with a modest income, no savings, but not too much debt. I'm still paying it off so it's slow going, but I can already see improvements and the peace of mind is PRICELESS.

Assuming the location in your user name is correct, you can just soak up some good vibes from proximity to the Oracle himself.  Then maybe transfer some of that mojo to this thread to get us good returns for catch up!

RIGHT??? There's a lot of quiet money here in Omaha and more jobs than people to fill them. I've only been here since July, but the Oracle's influence can be felt/seen.

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Re: Any other late starters here?
« Reply #43 on: March 09, 2016, 12:55:07 PM »
Dianne, the FWs are how I ultimately came to find MMM.  Worth a visit for sure!

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Re: Any other late starters here?
« Reply #44 on: March 09, 2016, 01:00:03 PM »
The modest goal this year is to whittle down that 60% category by at least 20%, and that's easily doable even after an unforeseen and totally avoidable $2500 car expense slapped me across the face two months ago (good friends don't let moron friends drive their minimally insured vehicles to the store).   
Smedley, this "frugal weirdo" family will help you get to your goal with ease. Along with MMM, of course.

http://www.frugalwoods.com/

Another nice blog with some basic fiscal advice.  Thanks

NearlyThere

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Re: Any other late starters here?
« Reply #45 on: March 09, 2016, 01:11:08 PM »
Congratulations Vixine on starting your journey.

Don't worry about being a "late" starter, imagine waking up in 20 years and trying to start then.

Dicey

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Re: Any other late starters here?
« Reply #46 on: March 09, 2016, 06:37:47 PM »
The modest goal this year is to whittle down that 60% category by at least 20%, and that's easily doable even after an unforeseen and totally avoidable $2500 car expense slapped me across the face two months ago (good friends don't let moron friends drive their minimally insured vehicles to the store).   
Smedley, this "frugal weirdo" family will help you get to your goal with ease. Along with MMM, of course.

http://www.frugalwoods.com/

Another nice blog with some basic fiscal advice.  Thanks

You're welcome. As a person with lifelong, relatively hard core frugal habits, I can tell you that what they are doing is far beyond "basic".

Dicey

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Re: Any other late starters here?
« Reply #47 on: March 09, 2016, 06:50:47 PM »
Hi LC,
I'm glad to hear that your health is improving. It looks like you hate debt as much as I do. I'm happily FIRE, but 54 wasn't all that early. I did not marry until very late in life, so I like to encourage other single women in their quest.

I'm not positive, but it sounds like you don't have a lot of savings yet. The most crucial aspect of investing is time. Since you're playing catch-up, time is scarce. The sooner you start saving and investing, the better off you will be. I'd politely suggest that if the interest rate is low, you rethink your plans to pay off the car loan early. Instead, make your payments as scheduled, putting the excess into your own savings. While you're building up this savings, it can serve as your EF. Once you've accrued the payoff amount, you can decide whether to kill the loan with a single payment or continue to increase your savings, while making steady payments.

Debt is not always bad. It is also a tool for creating wealth. If you want to boost your retirement savings, start NOW, don't wait until the car is paid off. It's not the standard line, but thinking a little differently could make a substantial difference in your net worth, which is the real goal.

Hi Diane,

Thanks for taking the time and giving such a great response. The plan you outlined is kinda what I see myself doing. The initial debt has got to go this year while it is all interest free, which makes the most financial sense.

The car loan I was going to save up for the year and use that savings in progress as my EF and then make a lump final payment at the end of the year which would leave me debt free and still with a modest EF.  Or as you suggested I could just ride the car payments out for the full 5 years and invest my savings in retirement.

I really go back and forth on this just because I don't know how my health will be and what my ability to make side income and full time hours at my regular job will be. Paying off my car would be more a mental bonus then a financial one, if I had a bad month that is one less bill I would need to stress about.  Stress has serious consequences on my health. That's really the only reason I consider not directing all extra money at retirement as soon as year two arrives.

I think I just need to live 2016-2017, save as much as possible and see how I feel. I definitely recognize though that from a compounding perspective you are 100% right.

Thanks again!
It is my pleasure, LC. What I didn't state clearly enough (I think) is that once you start seeing savings pile up that represent your future security, you will be reluctant to spend that money. I understand that the car payment represents one.more.bill, but I know from personal experience that if you know you have enough in savings to pay it off completely any time you want, you will have a greater sense of freedom and equilibrium. You will worry less about all of your bills and your security in retirement to boot. Pretty good trade, I'd say. Nothing calms your Inner Bag Lady (IBL) like money in the bank (well, preferably money in investments, but that doesn't have the same ring to it).

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Re: Any other late starters here?
« Reply #48 on: March 09, 2016, 07:13:25 PM »
I'm 42. I think we started about 3 years ago. Looking to be FI in about 5 years.

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Re: Any other late starters here?
« Reply #49 on: March 09, 2016, 09:24:50 PM »
I did all the dumb things you can imagine until 31, made a few steps in the right direction for the next few years, but didn't really kick it into high gear (or get NW much over 0) until 35, almost 36. Just two years later I am amazed at how much my picture has changed. You don't have to be actually FI yet for this stuff to benefit you. The feeling of empowerment from setting and achieving goals and knowing that you have more command of your future than you always thought, can arrive very quickly. For me, not hating life was a near-immediate side effect.