How to Manage the Highest Spending Category in Retirement – Be Creative!

Its not unusual to read in the news about studies which predict the next financial disaster ready to hit retirees and seniors.

Recently I read an article about retirement, and how the figures show that spending for seniors decline the most after the age of 65. The interesting (and most useful) piece of information from this graph, is that the amount of money put out for housing stays about the same from when we are age 45 to the end of our days.

What happens if your pension fund goes under, or severely cuts their payouts to you? Or, what if some other torpedo expense hits your savings?

One of the things you can do to take charge is to monitor – and be willing to change – your conventional housing choice.

Paring down to a smaller home, moving to a state that is tax-friendly, moving overseas where cost of living is more manageable, renting out a room, a section of your home or a casita can bring in extra cash should you find yourself needing to supplement a pension that has gone sour.

Considering a roommate, or perhaps joining financial forces with your children to have an “in-law’s unit” built as part of their home so you have a place to live that is close to your family are also alternatives.

Living on a boat, utilizing an RV as your domicile, or choosing your Active Adult Community manufactured home as your chief domicile are also more affordable options than a 4-bedroom, brick-and-mortar home with the maintenance costs, insurance and high property taxes.

There are so many more attractive choices today for housing than ever before.

The most important thing is to have your plan B – and to start thinking about that NOW, instead of waiting for a financial disaster to come and blow you out of the water.

 

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“Change Is Hard,” She Said

It was cool sitting on the shaded veranda.

We were surrounded by a lush garden, and my best friend and I were staring at the Bradshaw mountains of Arizona in the background.

Change is hard,” she said to me.

How many times have I heard this? But I took a few moments to mull it over again.

“I’m not so sure it needs to be…” I gently offered back to her.

I felt that emotional resistance of someone who absolutely holds this belief to be true.

On her face I could see the “Oh, here she goes again” expression that I sometimes get.

To this, I responded, “Look. I know ‘everyone’ believes that. ‘Everyone’ thinks change is hard because they’ve been told it’s hard. They’ve been taught that it’s hard…

“Unbearable, even.”

The wrinkle in her brow told me she wasn’t yet convinced. Over and over, life experience has shown her how hellish it has been to make changes. She has always said that she didn’t “do” change very well.

I leaned in a little closer to her and pointed to her garden.

“Do you see those plants?

“The butterfly bushes, the trees, the roses… the vegetables you have in your raised beds?”

I could hear her say mentally to herself “So?”

“They are changing.

“Every. Moment.

“Every second.

“They are growing, thriving, … just BURSTING with life.”

I paused for dramatic effect.

With an open hand I gestured to her manicured paradise and then asked “Does this look like a hell-hole to you? Do you hear screaming, cursing, and gnashing of teeth because these plants hate change?”

Bird feeders hung from the rose trellis, and together we watched a few wild rabbits munching on the seed that had fallen. Humming birds zipped through this idyllic scene and the silent butterflies landed on her specialized plants to attract them.

“I think Life is Movement,” I almost whispered.

Warming to my topic, I went on.

“Some people call it ‘Change’ and can barely spit out the word because it takes them away from a comfortable routine and they are afraid of what might come next. But actually…

“LIFE MOVES.

“Try not moving for a day or two. Don’t drink water, pass your bowels, blink or even leave your bed.

“I think THAT would be hard…

A few more moments passed.

“This garden that you enjoy every day is the perfect example that movement and change are good. It’s easy, natural, and necessary. Otherwise we’d be dead!

“I think that we have been taught that change is hard. We’ve been taught to hate it. Why not call it movement instead and just go with it?

My dear friend just sort of blinked, staring out into her amazingly full… abundant… back yard.

“Yeah, sometimes I just beg for these plants to grow. I want to see what they’ll look like when they’re a little taller or when they bloom.”

“I bet!” I agreed.

“And do you ever hear them cussing you out?”

She gave me a crooked smile.

“They’re just doing what nature does – grow, expand, bloom… drop a dead leaf…  – Every. Single. Moment.

“I think that’s what Life is supposed to be like for us,” I sighed.

We soaked in the bliss of the warm breeze rustling through the leaves. The fountain bubbled water, and we watched cloud art float by.

Sipping on her iced tea, my dearest companion said “ ‘Life is Movement.’

The feeling is different when I look at it that way.

“I just hope I remember.”

Smiling softly and crunching on an ice cube I suggested (to the both of us), “We’ll have your garden here to remind us just in case.”

At that moment, the back door flew open.

Wanna play cards?” her husband asked enthusiastically. Meanwhile, Noodles, her 8-pound rescue pup jumped up on her lap and started licking her face.

My girlfriend and I looked at each other knowingly.

“Life is movement,” she said confidently.

“Yup, it shure is,” I said as I grabbed Noodles and nuzzled into her soft fur.

 

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Dumb Things Financial Experts Say, Part I

Do you ever cringe when you read some of what financial advisers say in interviews or online?

Here’s a quote that we can dispute. It’s from Michael Kresh, president of MD Kresh Financial Services and author of You Can Afford to Retire.

Kresh said the average person cannot afford to retire before his/her forties.

“The only people who can retire that young are the people who have hit it big really young,” Kresh said. “You’re looking at somebody who’s effectively hit the business jackpot or lottery.”

It’s also difficult to retire young if you have children. Kresh argues that children can set your retirement savings plan back as much as 10 years, partly because of the increase in higher education costs.

I would have to hand it to Kresh that retirement before 40 can present challenges in ways some have not thought about. Questions like “Now that I’ve quit the job I hate, what do I do? I didn’t expect to land HERE…” or “I didn’t think about all those job perks I got (traveling first class, health care included in my salary, my title and status, co-worker events that filled my social life…)” Some have even mentioned to us that since they have left their jobs, they have gotten depressed! Too much time on their hands!

Yikes.

But we dispute that one has to hit the business jackpot or that it’s SO. MUCH. MORE. DIFFICULT. to retire if you have children.

Our own story proves that being focused, not being big consumers, tracking spending and cutting down on personal infrastructure can be a highway to FIRE.

We’d also recommend that you take a look at our interview with Jillian Johnsrud. She and her husband retired early and are raising 5 children.

So don’t let those financial “experts” define your life for you. Choose your own future.

For more interviews of Captivating Characters and other Early Retirees, click here

 

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Are We Being Misleading about FIRE?

Q&A with a Reader

Hello,

Saw the article on MSN about both of you– Congrats on your success. ….. I am sure you are getting tons of emails….

What the article doesn’t mention is how much money you started off with?  I have seen some articles that say $500,000………We are obviously not all stock brokers and successful restaurant owners….

I think it is a bit misleading excluding that information.

My guess is you had well into 6 figures, if not more, to take off and do this…..I am not trying to be confrontational and I know that info is private, but people need the “whole story” or else its of little value….. at least to me….

I think it would take over a million in today’s dollars to do what you are doing…. Not a reality for the majority of the population….

Thanks for any feedback….

Scott

Hi Scott,

Thanks for taking the time to write. We appreciate it.

Catey Hill from MarketWatch didn’t ask us what amount of money we had when we retired in 1991 – but there are other stories that state we had $500k.  Yes, in today’s dollars that would probably be a million or so.

That being said, the FIRE lifestyle or the FIRE choice isn’t for the majority of the population.

It would probably be safe to say that most people would rather live a conventional life, fitting in with their peers, have a job, a pension, own a home, have a pet, maybe have kids, live in the same neighborhood for a decade or more…

But that doesn’t mean Early Retirement can’t be done on less, or with an income less than $100k a year to save up for Financial Independence.

The internet is full of FIRE-ees who have done this (Jillian Johnsrud with her family of 5 kids, Mr. Money Mustache, and countless others). Take a look online for personal financial bloggers or on Twitter for the same. I think you would be surprised.

Everyone is different. We all make choices and have different priorities. Life has never been a one-size-fits-all.

You might be interested in our article How to Create a Pension for the Average Joe. And take a look at our Retirement Issues Page for more articles on this topic.

And just to mention, in our world travels, we have met many people living on their Social Security income. Countries such as Mexico, Guatemala, Thailand, Vietnam, Laos, Ecuador, and Panama offer a good quality of life for less money.

It just depends on what you might want to do.

The hardest thing isn’t living the FIRE lifestyle, I think it’s the decision to live the FIRE lifestyle. It will definitely separate you from your peers, and some people don’t like that.

Everything in life has a trade-off. You just have to ask yourself if you want to make that negotiation with yourself. Then commit to it.

Wishing you the best.

Feel free to write any time.

Akaisha and Billy

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Keep Your Mind Sharp Even When You’re Retired

Thank you for visiting the RetireEarlyLifestyle Blog!

This post is no longer live, but if you want to know more about financial independence, world travel and medical tourism, please visit our website.

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

Thank you!

 

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Things You Should Know Before You Go to Maui

 

 

Thank you for visiting the RetireEarlyLifestyle Blog!

This post is no longer live, but if you want to know more about financial independence, world travel and medical tourism, please visit our website.

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

Thank you!

 

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How to Enjoy Yourself to the Fullest when in San Tiago, Chile

Danish Wadhwa

Chile is a fantastic South American nation that has plenty of beautiful places to visit. This country is the top-notch place for adventure tourism in the world. The report revealed that Chile received over 6.4 million tourists in 2017 and it is expected to increase each year. Below is the figure that shows the flow of tourists in Chile.

Image Source: Trading Economics

 

If you are traveling to Chile, it is almost sure that you will put your foot in Santiago, which is the capital and also the largest city in the country. There are plenty of things that you can do in Chile, but some of those are the ones that you cannot afford to miss.

It is evident that you will not be knowing much about the country when you visit the nation for the first time, which is the reason why I have written this article to make your tour as enjoyable as possible. You can quickly get American Airlines tickets to San Tiago, Chile so that traveling won’t be much of a problem. Consider booking your next flight from Faremart.com, a robust travel booking platform providing satisfactory services to all its clients and users, making their journey a memorable one.

Missing out on these seven things will make you regret later

It is not possible to do all items when you visit a specific city in a country, especially when you are in short of time and you want to complete as many items as possible in a limited time. I could have mentioned more than seven items on this list, but I decided to put seven coolest things to do, keeping many things in mind.

Here are seven things that you must do in San Tiago when you give it a visit:

Walk or take a bike to roam around the city

I know that you would want to visit around a few areas of Santiago after getting a good rest at the hotel after you reach the town. There are plenty of places that you can visit as there are apps that can guide you on where to go. You can check out Central Barrios by walking around the site and enjoying the surroundings around the place.

Explore and take some photos at Foto-Ruta and hop onto Turistik as well on a bus. If you want to roam around on a bike, it is a great choice as well. You can rent a bike for a day and wander around places starting from Viticura, where you will get a bike sharing service.

Image Source: Wiz Tours

Outdoor adventure if you are looking for some exciting activities

Cerro San Cristobal has something for both who loves challenges or who only want a quiet walk. There is a hiking trail for people who want a road path for exploring the area. You can observe spectacular views of the city when you hike up Cerro San Cristobal, Recoleta.

Besides Cerro San Cristobal, you also have options to go out for hiking in areas like Parque Natural Aguas de Ramon and Glaciar del Morado. Keep in mind that you are not only limited to hiking here. At Parque de Montana Farellones also features trampolines, rock climbing, rope courses, and so on. If you opt for going to a beach, do more challenging stuff like a kayak, scuba dive, and more.

Sanhattan/El Golf

Get to Tobalaba/El Golf and check out Santiago’s modern financial center. You will be amazed by the structure after checking out its impressive sculptures. There is a sequence of painted horses along with painted benches to rest and enjoy the view.

Check out the Costanera Center mall along the way and observe the Costanera Torre, which is the tallest building in South America for now. After roaming around and doing some observation, you can head to restaurants and enjoy a delicious meal. You can find a lot of restaurants in this area.

Image Source: Santiago Tourist

Cementerio General de Santiago

It might seem strange for you to see this one on the list as the cemetery is a place that you often want to avoid. However, this cemetery in Santiago is worth the visit, and you will regret your decision later if you ignore it.

Cementerio General de Santiago is a burial place of two historical figures of Chile, and they are Dictator Augusto Pinochet and Libertador Bernardo O’Higgins. The president’s tomb is in the height range of 2-3 stories, which is pretty unique.

You will fall in love with this place if you have any interest in Recoleta Cemetery, Buenos Aires.

Image Source: Wikimedia

Barrio Lastarria

Lastarria, a tiny oasis in Santiago Centro, is a fantastic place to hang out at night or to check out on a variety of restaurants. Bocanariz is a place to visit if you want to taste some great local wines of the city. You will love the range of wine choices that the restaurant will offer when you visit it.

There is also a place for coffee lovers at Colmado Coffee and Bakery. In weekend time, you will find street vendors demonstrating their arts. In case you are craving for a museum, you can visit the MAVI Museo de Artes Visuales, which is a museum for enjoying visual arts. You will have a wonderful time visiting this place by eating delicious foods, drinks, and beautiful crafts.

Try Helado, seafood, and other local foods

Finally, it is time for some tasty meals. At first, you can start with something light like Helado, which is delicious ice cream. While looking for ice cream, you should check out for Helados Artesanales, which is a best quality ice cream around.

You will see many locals enjoying ice creams of various flavors. There is also an option of Helados de Fruta, and it is for those who want low calories ice cream. Emporio  La Rosa is one of the best ice creams that you will ever taste, and it is the most prefered ice cream in the town.

When you are in Santiago, you also cannot miss out on trying classic Chilean seafood. You can try out tasty ceviche/cebiche. Also, check out Chilleian sushi, and you will often get cream cheese with it.

Palacio de La Moneda

It is a presidential palace, and its location is in Santiago Centro. Its original purpose was to build it as Chilean mint. To visit this palace, you need to schedule your visit in advance.

Finally, try enjoying foods like local. Try classic cuisine like pastel de choclo, which is like shepherd’s pie, meat with a mix of vegetables and cornmeal topping. There is grilled beef, a classic Chilean drink, and more.

Image Source: Pixabay

Chilean artists have designed their sculptures, and it is superb. There is a guard ceremony at, and you can observe it.

If you want to check out arts and know about the culture, you can head to the Centro Cultural Palacio de La Moneda.

The Takeaway

Only traveling to a new place will not be much of memory if you do not do activities that are popular in the town. Instead of fun, you may regret it later because it may not be possible to visit that same nation next time.

Now that you have read this article, you will be able to enjoy your trip to the fullest. Surely, you will miss out some things here and there, but I’ve covered all the significant things that one should do in San Tiago. If there are more things that you want to add, do let us know!

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How to choose the best female and male digital watch

Thank you for visiting the RetireEarlyLifestyle Blog!

This post is no longer live, but if you want to know more about financial independence, world travel and medical tourism, please visit our website.

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

Thank you!

 

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What if all US health care costs were transparent?

Jeanne Pinder

This is a woman after my own heart.

I wrote a post a while back asking how your life would change if you utilized the words “What If…?” In a positive manner?

The answers to our conundrums are often in the questions we ask, so Jeanne Pinder asked “What if all US Health Care Costs were transparent?

At first, doctors, billing offices and insurance companies balked at their audacity to ask such questions, and Jeanne mentions how she felt like she was breaking the law with wanting to know the prices of procedures and medicines. Some people hung up on her, others told her that their lawyers wouldn’t let them reveal their true pricing.

But Pinder’s company persevered. And the experience became liberating.

She found answers and data.

WOW!

This is where she went with her answer. It’s a must-see video. Click on the photo to watch.

 

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Will Medicare Cover Me Outside the USA?

Thank you for visiting the RetireEarlyLifestyle Blog!

This post is no longer live, but if you want to know more about financial independence, world travel and medical tourism, please visit our website.

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

Thank you!

 

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