I placed a phone call to my investment advisor that comes standard with having a USAA account. It kind of makes me feel more important than I really am; I feel like its a good conversation starter at some fictional Bruce Wayne hosted dinner party.
“HAHAHA! Yes Ms. Lane My financial advisor and I were on this Yacht right outside of Gotham”….. OH Never mind.
I left this particular conversation feeling a bit dejected. According to Michael, I would have to start saving virtually every single dollar of our 110k household income for the next 30 plus years in order to retire at 65 with my same income and also account for something he calls inflation (something I interpreted to be what happens to balloons, balls, and bicycle tires).
As I verbally stated to Michael how great of an idea it was to put my money into 401Ks, IRA Roths, Life Insurance policies for protection of assets, and other money safe houses. On the inside I was yelling in my old school gangsta voice that I often talk to my wife out loud in to let her know I mean business, “This is Re- Got Damn – Diculous”! There is no F-ing way that I am going to live like a pauper for the next 30 years only to retire and continue to live even more like a pauper for the next 10 years with hopes of not becoming a Wal-Mart Greeter to pay for my medication until I get my mansion in the sky that better DAMN well come with 40 virgins and a mule too! That’s B.S., and such an unfulfilling way to live; not to mention the financial lessons I would be teaching my children.
THERE HAS TO BE A BETTER WAY!
“There are 2 ways to become wealthy; earn more money or require less S#*T!”
Such profound words I’m sure came from a Socrates like philosopher who doubled as an aide to the King’s Table or something. Once I heard this I immediately thought requiring less S#*T is way easier than making more money. Besides I had this sneaky suspicion that making more money would directly impact my wealth unless I required less S#*T anyway. I am pretty sure that making a million dollars per year and paying out 1.1 million dollars is the same as making 20k and spending 20,500 every year just with style!
The hardest part about coming to this realization was taking a hard and honest look at my own families financial footprint. After a real brief conversation with my wife and 5 minutes of number crunching we realized we had made approximately 108k from income sources. Of that 108k we had a little over $2800 saved in 401k. Trust me I know, pull your lips back together and stop frowning at me! We spent 105k and saved 3k minus the $1000 loan we took out to pay for Christmas presents for our family! Hey it disgusts me too so let’s move on.
That day I realized something that would shape our decisions in the upcoming months. At one point in time a 24 year old Mr. BPOZ!, 4 children, and his wife could barely pay our $900 per month rent, no discretionary income, and barely had enough for the extravagant luxuries like the $8.99 bottle of E & J Brandy for our occasional date night. However, those times were the least stressful, funnest, most rewarding times in our young parenting lives. Now our lives are filled with expensive trips, Air Jordan tennis shoes, lots of square feet, and 4 kids who think money falls from the heavens; to no fault of their own. I did teach them this reality, but our relationships as a family are suffering.
The notion that if I just made more money, I would be happier couldn’t be further from truth once you get past the enough to pay your $900 rent and opt to not buy the 50/50 meat to fat ratio hamburger tube then life is good! Everything else is in excess!
So take a look at your financial footprint and see where you can trim the fat!
Here is My Plan!
- Purchase my current home and turn it into a rental property. Move into my Father’s rental home saving me about $800 per month
- Use the $800 per month and pay my car off in 10 months saving me an additional $345 per month
- Use the $1145 and pay off my wife’s car in 10 months saving me an additional $450 per month
- Reduce Car insurance to Liability Insurance saving me $100 per month
- Pay off tricky cell phone leases saving me about $90
- CANCEL CABLE…. I mean who still has cable any way ($190 in savings)
Accomplished in 3 years would save me a total of $1975 every month. After some brief calculations of moving into a smaller home and reducing frivolous spending such as eating out, Amazon purchases, and the consistent yes to puppy-eyed children can easily be an additional $1200
Grand Total: $3175
WHAT WOULD YOU DO WITH AN EXTRA $3175?