Learn from other people's mistakes

[anon-e-mouse]

One major motivator for me to become mustachian was watching my mother's empire crumble with the housing bubble a few years ago.
She was heavily invested into real estate and her (now former) husband caused the collapse in their marriage and their retirement.
They lost 6 houses.....
Both of them now struggle to get by.

I just read about a similar situation where a couple failed to plan and now they're in retirement living off of the system, rather than enjoying life.
http://finance.yahoo.com/news/couples-budget-shows-retirees-live-162607137.html
It seems that we're supposed to be proud of these people for living on a small budget?  They're seconds away from complete disaster.

I will NOT end up like this.
I will continue making retirement plans and be prepared.

[Kaspian]

Even when I was little I hated the platitudes, "You have to make your own mistakes," or "You learn from your own mistakes".  I always figured why wouldn't you primarily learn from the mistakes of others and then work to avoid those?  Hell, there's libraries out there full of grand mistakes.  Before you venture into something unknown, give it a quick check online or on YouTube to see how others might have fucked it up.  Do you think the guys in the WWII tranches "learned from their own mistakes"?  Hell, no.  "Jimmy just blew his ass up stepping on a muthafuckin' landmine over there...  But I'll give it a go anyway 'cause I really have to make my own mistakes."

[MoCoMatt]

Why on earth are the people in that article spending $100 a month on charity? $6600 in credit card debt and they are giving to charity?

[WildJager]

Why on earth are the people in that article spending $100 a month on charity? $6600 in credit card debt and they are giving to charity?

Religion.  My dad's parents used to give a substantial amount to their church, even when they couldn't afford to feed and clothe their children.  Because that's what God expects, according to the church.  "You should be thankful of all your blessings, and give to those less fortunate."

I don't value that philosophy.  The brainwashing is strong though, and that becomes a higher priority for the devout than their personal well-being. 

[Rezdent]

How does that saying go?  "If you can't be a good example you could at least be a horrible warning" or something like that?
I just don't have enough time left on earth to make all the mistakes myself (but I do make a lot).  Thank goodness others are sharing theirs.

[Retired To Win]

Sad to say, it was from my Dad that I learned what NOT to do financially.  Always kept himself overextended.  Never saved.  Depended a lot on buying things to think himself happy.

Not sure how I turned out the exact opposite.  I'm just happy I did.

[MsPeacock]

I have seen this in my own family or with friends. They only had 20k saved for retirement??? It is clear that there have been medical problems, and their son is disabled, so there are obvious challenges for them. And, their medical costs are very high (at one point paying $1500 a month for COBRA - that just should never happen to anyone).

But - we all know/expect/hope to retire at some point. Many people *have* to retire because they physically can't work any longer at some age - so plan and save for it. 20k savings for retirement isn't going to cut it. Retirement can be seen and expected from a long ways off (like, 40 years off, if you work from age 20 to 60) - so it should not come as a financial surprise.

[bzzzt]

But - we all know/expect/hope to retire at some point. Many people *have* to retire because they physically can't work any longer at some age - so plan and save for it. 20k savings for retirement isn't going to cut it. Retirement can be seen and expected from a long ways off (like, 40 years off, if you work from age 20 to 60) - so it should not come as a financial surprise.

This. I work construction and it's not kind to your body over the length of your career. I've seen way too many guys get into their 50s and their bodies just won't keep up with the abuse anymore but most didn't plan to quit working until 62 ("early" retirement with pension payments). The best hope for most is Social Security Permanent Disability until the pension kicks in.

It's tough trying to "carry" a guy with a double knee replacement and a bad back and let him get to retirement age, so my plan is to be financially ready to pull the pin before that. That way, if I still want to work, I can wait until a job comes along that I won't have to try to run to keep up with the younger guys.

I'm only 31 but I already have arthritis in my back and have one knee that needs to be 'scoped plus another that's not too far behind it. Trading years of usefulness of a part of my body for a paycheck, and I usually enjoy it. Some of us just aren't right in the head.

[libertarian4321]

Religion.  My dad's parents used to give a substantial amount to their church, even when they couldn't afford to feed and clothe their children.  Because that's what God expects, according to the church.  "You should be thankful of all your blessings, and give to those less fortunate."

I don't value that philosophy.  The brainwashing is strong though, and that becomes a higher priority for the devout than their personal well-being.

You just summed up religion (all of them- Zeus, Jesus, Allah, the Flying Spaghetti Monster, Buddha, whatever imaginary friend you choose) in a nutshell.

Give til it hurts, peon, then give some more.

The Pope needs to buy (yet another) golden toilet seat.  Praise be to Jesus/Allah/Zeus/The Great Turtle/ (insert God/imaginary friend here).

[jzb11]

My father is a great example.

He was an excellent sales rep and was responsible for helping his company grow tremendously. Once manufacturing started to move to China, the company he worked for started to tank. Eventually the owners son sold the company and my dad was laid off. He found another high paying job in an unrelated field due to some special skills, but the cost was high. He was miserable and had to live overseas in undesirable locations.

Other than that it seems to be a common theme that workers in their 50s/60s have a difficult time finding employment when they're laid off. If I can be FI by the time I am in my 40s, then I'll never have to worry about it.