Boatswain2PA Posted June 28, 2021 Share Posted June 28, 2021 There are posts here about the highest paid, managing student loans, etc. But how do one BEST measure financial success? Two ways. First is by net worth. Take the value of everything you own, and subtract what you owe. Your holdings of cash + todays market value of investments/real estate/etc minus every debt you have is your total net worth. If you dont have an idea of what this is....you should. Nerds will have a spreadsheet (I do). Second way is how you would weather a storm. Global pandemic (those never happen, right?), job loss, injury, death, job market collapse, death of spouse, government stops paying for healthcare, hyperinflation, etc. Would you still be successful if the unexpected happens? Thoughts? Quote Link to comment Share on other sites More sharing options...
Mayamom Posted June 28, 2021 Share Posted June 28, 2021 My advice. Get out of debt. If I don't have cash I don't buy it. Try to pay off your home. I did many years ago. Best decision. 1 2 Quote Link to comment Share on other sites More sharing options...
Moderator ventana Posted June 28, 2021 Moderator Share Posted June 28, 2021 1-spend less then you make 2-max out contributions to retirements that get matched (free money) 3-start a ROTH as young as possible and put max amount in 4-avoid car loans 5-in the market - you do not need a fancy investment advisor - you need low expense wide based index funds 6- marry someone with similar ideas I have followed this and will retire at 60 with plenty of money an no worries 1 2 Quote Link to comment Share on other sites More sharing options...
GetMeOuttaThisMess Posted June 28, 2021 Share Posted June 28, 2021 (edited) 4 hours ago, Mayamom said: My advice. Get out of debt. If I don't have cash I don't buy it. Try to pay off your home. I did many years ago. Best decision. Yep, yep, and YEP! For you "young uns" who won't have a defined pension plan in most circumstances I feel for you trying to save enough to retire at some point. Pensions and Social Security (not the same as SSI I've discovered) will be our primary retirement income at 65/63 respectively in 3 years. Savings will float us through then and I'll have a pre-determined safety valve of $300+K sitting in reserve (used to be $200K but a family inheritance allowed it to be bumped up). I keep looking at downsizing now that I'm no longer tied to DFW specifically but I haven't found anything in a 2/2 1200-1300 sq ft size that I like. Edited June 28, 2021 by GetMeOuttaThisMess Quote Link to comment Share on other sites More sharing options...
Moderator EMEDPA Posted June 28, 2021 Moderator Share Posted June 28, 2021 In my early 50s I have a few 401Ks and a pension from my first job. I do have someone else manage my retirement portfolio who understands my priorities. Should have the house paid off soon. we have been in the same small house for over 20 years and paid less than 200k for it. Money for kids college is set aside, so no loans there. We should be ok. I have never gone in for big ticket purchases like a boat, RV, ATVs, media room, etc. I did get a mini cooper 2 years ago, but bought it used as a certified preowned. I do drive a lot so wanted to be comfortable and have AWD. Quote Link to comment Share on other sites More sharing options...
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