Saving $ 10 a day - Can't Retire on that.
View this post on Hive: Saving $ 10 a day - Can't Retire on that.
5 years ago in #investing by abitcoinskeptic (73)
$34.13
- Past Payouts $34.13, 0.00 TRX
- - Author $25.92, 0.00 TRX
- - Curators $8.21, 0.00 TRX
It's really hard to just live on savings as you said...inflation sucks. And, the worst part is, it happens everywhere, so there's no escape lmao.
I guess my friend will be interested in these calculations, he had been thinking about retirement even if he's at the same age as me (brb sharing it to him). On the other hand, I have little to no idea about money except for "just save what you don't need to spend", but reading the calculations on it still feels fascinating.
I don't understand it all either. I try to learn more and more every time. Most people love spending their money or thinking how to make more. But thinking how to use it best or keep it is also important.
lol wow I wish. I think that model works but there's so many variables... like most people that I know simply can't do away with 10%... at 30k a year that goes a long way (kids in school, kids in sports, much needed vacation) . And then my experience with the middle class and below is such that literally no one has any money in any type of fund whatsoever... except for a mortgage 😂 😅
lol my family still thinks that my broker is some sort of scam... and crypto? My family friends would just laugh me out of the house... there's really a huge disconnect actually.
If you can't save $10 a day long term, why not start with $3! There are so many expenses. Frankly paying off the mortgage is a good one because eventually, you will finish, then you can start saving for retirement and even consider selling and downsizing later. I live somewhere with goood transportation into work and I pay a premium for this. I won't need it if I stop working and I can use the difference to suppliment my income.
Relying just on personal savings is difficult and requires a high income and a tight budget. Luckily we have work pensions and the government. A poor retirement would be relying solely on the government or charity, it's like riding a unicycle. Having a private pension plan puts you on a bicycle. Add Personal savings to your pensions makes retirement like riding a stable tricycle. Elderly often have difficulty standing on just two feet!
With a long enough time horizon, $10 per day is more than enough if you have a decent private pension, a government pension and a low cost of shelter. Government pension plans cover maybe 20% to 30% of your needs. Private, work-related pension plans can cover up to 60% of your needs (or 70% if you work for some governments). Saving 50 dollars a day for retirement is unrealistic unless you have great income or already own mortgage free property.
$ 10 a day is a wonderful start and depending on other investments and pensions it may very well be enough especially if you save for more than 25 years, say starting at 20 years old instead of 40.
I like using the example of $ 50 because this will make certain you are well off in retirement even without a private retirement package.
In Korea the government likes telling the pension plan what to do and this is scary because frankly its performance is poor.
Posted using Partiko Android
Maybe if you made 10$ a day extra with a supplemental income? Maybe you invest in something that will inflate in value 3x? 10x?
Eventually I will be at 10$ a day posting on steem and it will be worth 3$ ($7.77?). Steem is part of my. Retirement which is why I power up every penny I earn here
Ah who is kidding who, I can’t see powering down. Too much fun here.
Posted using Partiko iOS
If you can make $10 a day in passive income when you retire that is great. Websites and blogs, or good stocks paying dividends are great. Owning some rental properties is even better. I know a few people who make good passive income that involves very little work.
I really hope Steem does well, too. If it lasts 25 years and doesn't devalue too much we will all be really well off, especially those of us just reinvesting our 50% liquid. If the price goes up to $5 or something we will be laughing. I don't see this model dying either, but I am watching the development of other platforms like Voice, etc to see if I should double-dip so to speak.
I'm earning more than $10 a day playing Prospectors. Maybe I'll retire early.
If that game lasts 25 years, you probably will have one hell of a retirement story. Hope your investment goes well.
Posted using Partiko Android
@abitcoinskeptic - LOL at latching onto a government worker for your retirement plan. I was able to retire at 58 after 30 years with the US Postal Service - you make a good point!
Government jobs are great. I have quite a few family members and friends who've worked in them.
Years ago when I worked serving in a restaurant, I got a party of people from the Local National Human Resouces Office Branch (basically it's unemployment insurance). They made it clear they wanted to split the check and I was the only one who decided to go for it because it's a pain in the ass to split 20. Needless to say it was a hell of a lot of work, I was slow and made several screw ups. Were they upset? Not at all, they were having a great time and I don't think I ever met kinder and more understanding people. It would be an absolute pleasure to work at that place, I'm sure.
Saving at ALL is made virtually impossible with the cost of living these days... sadly!
Yeah, it's really hard to save enough. For people who can't do 10, I would suggest doing 3! Having 100 a month when you are too old to work is awesome.
clear resteem.
The sad part is that nature or history does not average. Huge discontinuities, boom and busts dominate the landscape. When there is hyperinflation you even lose everything. Its like winning the lottery but die a day after. I wonder how likely it was, if you put the 10 dollars over 25years into venture capital? If you hit a future bubble, 10$ can make you a millionaire even if all the others are fails.
I agree. In the 1980s mortgages and bank loans were above what consumer credit cards are at today.
I've never been in a situation with hyper inflation, but that is why diversifying in global funds and among other things like crypto land stocks and precious metals is a good strategy.
Posted using Partiko Android
Interesting analysis. $10 a day is definitely not enough in the U.S., imo.
The average person should learn how to buy an index like the S&P500 that pays dividends and learn to live off of those dividends. They should also diversify into things like crypto (with tiny amounts of their overall portfolio).
Asking the average person to do this though is like asking a boxer to solve math equations while being in the middle of a championship fight... no available attention
I'm 51 years old, make less than $3000 a year income (havent had a job since 2001) and can live fine in the US. The key is who you know and what skills you have that others want. This has worked for me though I would not recommend it to others.
Wow, so you can survive off $10 a day in the US! That's really good. I think in a rural area if you own a couple of acres of land, it may be possible, especially if you have a well-built house a good wood furnace and some off-grid electricity. The only worry is the lack of insurance or when you need to do big things.
$10 isn't enough unless you have a private pension fund from your company. Usually, in the US this means government, union or fortune 500 company.
Money is so important and everyone definitely needs to discuss it and learn more about it cause it ain't going nowhere. I think crypto is interesting and block chains have a ton of applications for traditional finance and investments.
It is definitely tough to discuss investing and such with average people. It drives me nuts that we have mandatory classes in high school discussing social science, geography, history and civics/politics, but not personal finance.
Hello,
Interesting theory, it's definitely never a bad idea to tuck away some cash... To be honest, I believe the best way to beat the inflation rates is to put $10 per day in crypto, this stuff is around to stay.
-pf
About $10 a day in crypto is what I've been doing for awhile. It has been so far so good.
Definitely more exciting than paying off a mortgage or putting money into a 401k, rrsp or whatever your country calls retirement savings funds,but no su substitute.
Posted using Partiko Android