Retirees Spend 80% of Their Income in These 5 Areas | How Do You Compare?
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- Опубликовано: 16 июн 2024
- This video highlights the five major categories where retirees spend 80% of their income. The data is broken down by average dollar amount and percentage for easy comparison.
The video also gives 23 proven and easy ways to reduce spending in these categories, while at the same time maintaining approximately the same quality of life in retirement.
DATA
Bureau of Labor Statistics Survet of Consumer Finance, September 2022
www.bls.gov/cex/
Private Label Manufacturers Association
plma.com/
00:00 Introduction
03:52 Category 1
04:39 Category 2
05:17 The Single Most Important Thing to Know About Groceries
06:44 Why a Grocery List Alone Won't Work
12:20 Category 3
15:41 How to Pre-Plan for Emergency Room Visits
16:53 Category 4
22:34 Category 5
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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.
The best way to save money on food is zero tolerance for processed "food" and zero tolerance for restaurant "food." This will save you tons of money on your medical expenses too.
For sure!
Even through their working lives, most people don't realize how much money they spend going out to eat. Bringing your own lunch to work can save you thousands of after-tax dollars per year. And processed food is indeed more expensive and less nutritious at the same time.
I couldn't agree more!
@@dingfeldersmurfalot4560 My father, a d. mechanic, was often made fun of at his workplace for bringing bagged lunches & thermos. We had a rooming house full of immigrants just like us frm Hungary & it was me from age 9 on when I finally was brought to Canada to make everyone's lunches so that offended me too. He would tell us how the men also made fun that my mother cleaned houses around Toronto & brag that their women shopped...on weekends we worked in our huge backyard garden where a lawn had been...my father went to his other job that he also went to 3 evenings. On Sunday after church he sharpened tools, skates etc in the back shed/garage off the laneway. Every room was a bedroom except the kitchen. Everyone got wealthy together over less than 20 yrs. A bank manager asked me once "how do you immigrants get so wealthy so fast" & when I listed things he thought then said "my grandmother was the immigrant & I remember her doing the same things". The men who used to want to borrow money for the food trucks or several days prior to payday cus the 'lay-a-ways' the wives had were due all wanted to come to the cottage we had built in the Kawarthas on several acres around the end of a lake or to our farms just north of the city where we built houses on weekends once the tenants had all bought apartment buildings or houses of their own to have flats to rent. You have to respect what you earn. Simple as that.
@@dingfeldersmurfalot4560 If one's life goal is to save money on food and eat cold sandwiches, yes, you are correct. Yes, eating out can be expensive, however, most people would like to derive occasional pleasure from life, like eating out with friends/family, taking a vacation, going to a play or concert, etc. Unless in retirement one relies only on SS benefits and has no other source of income, yes, rice and beans might be what's on the menu.
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
Agreed, the role of advisors can only be overlooked, but not denied. I remember in early 2020, during covid-outbreak, my portfolio worth around 300k took a slight fall, apparently due to the pandemic crash, at once I consulted an advisor in order to avoid panic-selling. As of today, my account has yielded big fat yields, and leverages on 7-figure, only cos I delegate my excesses right.
this is huge! mind if I look up the advisr that guides you please? only invest in my 401k through my employer for now, but enthused about diversifying my investments for a prosperous financial future
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Dave Ramsey would say pay off house and all debt.
Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?
Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio.
On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal port-folio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my port-folio this red season. I’ve made over $150k since then
Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sonya lee Mitchell turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
I searched her full name online and found her webpage. I emailed to make an appointment to talk with her; hopefully, she gets back to me.
One thought is to buy the dip and then wait to break even, another thought is: Will buying low during a recession work if I'm retiring in the next 3years, I'm no way near prepared for retirement and I just need strategies to scale up to atleast 2million by the time I'm set to retire
Since the crash, I've been in the red. I’m playing the long term game, so I'm not too worried but Jim Cramer mentioned there are still a lot of great opportunities, though stocks has been down a lot. I also heard news of a guy that made $250k from about $110k since the crash and I would really look to know how to go about this.
There are actually a lot of ways to make high yields in a crisis, but such trades are best done under the supervision of Financial advisor.
Thats true, I've been getting assisted by a FA for almost a year now, I started out with less than $200K and I'm just $19,000 short of half a million in profit.
@@kenanporubsky2122 Impressive can you share more info?
@@martingiavarini Big Credits to ''Catherine Morrison Evans'' she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Catherine has been a good guide through the year.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs.
who is your adviser?
thanks for recommending i find her
I agree!! The current generation are too interested in what big music group can they afford to see next.
That’s all they talk about, what concerts they’re going to or what high-priced brand name item of clothing they’ve recently purchased, or what country they’re going to travel to next. They don’t care about putting money away in their 401k because they think they have plenty of time to think about that later in life.
1. 6% Entertainment
2. 12% Food (Use a list, You throw out > 1/3 of the food you buy; buy less, go more frequently; buy the store brand)
3. 13% Healthcare (Advantage, generic drugs, inpatient/outpatient costs)
4. 14% Transportation ( Car payment, insurance, fuel, use Gas Buddy)
5. 36% Housing (Mortgage, maintenance, utilities, insurance, location, 55+, HOA, taxes,
@CB BC 👍
Thanks, why does he make a 26mins video for these 5 basic items? It could be under 1min.
thank you. I couldn't take it anymore, droning on and on
@@williamlyons3947
A new America?
The phrase "Build Back Better" came from the World Economic Forum, not Biden.
A new America?
@@skippylippy547 Don't engage with the troll. He is lost, and will never be convinced of his folly.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000
Mind if I ask you to recommend this particular coach you using their service?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?
Given the prevailing market conditions and the potential risks associated with the current economy, I would recommend refraining from investing in stocks for now. Instead, it would be prudent to consider retaining a portion of your assets in gold. Alternatively, seeking advice from a financial advisor could provide valuable guidance in this matter.
@@richardhudson1243 true, A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far
@@richardhudson1243 Gold? You mean Silver. And just leave it in stable value or money market until at least one investment bucket turns positive for a month or three. I have been waiting over 18 months and none of the 27 buckets in my 401k has shown an uptick for any length of time. Gold is 2k an ounce. Silver is 25 bucks an ounce. It is a major pain to hold metals though and then walk back in with a suitcase of metal to trade in... if you ever do. Most of that gold gets inherited by your children.
Diversify
@@darnellcapriccioso Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
The thought of retirement makes me a little worried. My apologies to everyone who have retired during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for. it's kinda difficult for people who are retired.
@Mark Lofgren please tell me how to use this recession to make gains! Grew my reserve of $121k to over $513k btw DEC. 2011 and AUG 2012 but the market is diff now..
I just started few months back, my grandson helps me but I'm going for long term, I'm still trying to figure it out honestly.. Which advisor do you work with?
@Mark Lofgren Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume..
Gracias mark, I really appreciate the help and I'll do my due diligence and contact her right away.. thanks @mark lofgren
Why do you feel this is a bad time to retire?
I’d be retiring or working less in 5 years, and considering this financial recession, I’m curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $250K per year but nothing to show for it yet.
Do you have a 401k? you should contribute to your retirement diligently, or better still look into financial planning
Very true, I find myself lucky enough exposed to money management at an early age. Worked full time when I was 19, purchased first home at 28, fast forward time... I'm 50 now, got laid off March 2020 amidst lockdown, a blessing in disguise. At once, I consulted an advisor to stay afloat and with subsequent investments, I'm only 15% short of $1m as of today.
this is huge! would love to grow my reserve regardless of the economy situation, my 401k has lost everything accrued since early 2019, at this point, i'm in need of guidance, can you point me?
I’ve shuffled through a few experts in the past, but settled with ‘LOREN LENA WALKER’. The strategy they use is recession-proof, more specifically profit-oriented, and most likely, you'd find her basic info on the net, she's a renowned advisor.
thanks for info! curiously copied and pasted her full name on my browser, spotted her page easily, she actually looks very distinguished
I'm nearing retirement in three years, and despite having solid companies in my portfolio, my profits have stagnated in this uncertain market. Are there any calculated profit opportunities in this recession?
Generating substantial profits, particularly in a bear market, involves employing intricate strategies that are best executed by seasoned market experts.
I agree. Despite early setbacks and losses in the market, I re-entered in February 2021 with guidance from a recommended investment advisor. Fast forward two years, and I've gained over $720k in profits.
Wow, that's impressive! Could you provide more details?
@Jason9o669 Certainly! Everything unfolded under 2 years following Stacey Lee Decker’s guidance. I began with just under $150,000 and now I'm only about $45,000 away from reaching a-million dollars.
She seems highly educated and informed. I looked up her name on Google and found her website. Thanks for sharing.
I planned. My condo is mortgage-free--just HOA (maintenance), utilities, property taxes. My car is 37yr old in good condition, city bus goes right by my home, I walk 1 1/2 block to stores (grocery, drug, dollar, hardware). Health Insurance is paid as part of my retirement. I learned about store brands when I was a kid (parents together had six kids). I live frugally, but well, without worry.
You be smart.
HOA fees are always rising. It's better to avoid them
I love ❤️ your style! I'm right there with you, although renting;(
HOA is communism. You have no choice to pay up or get foreclosed. And special fees always come up all at once ...not good unless you believe that you want to be micromanaged and ruled over. Or simply a sheep 🐑😂
@@8675-__yes. I am concerned about the fees rising, it can be as bad as rent increases.i do wonder if single home maintenence is comparable to association fees.
I've been retired for several years now: no debt and very comfortably off. Your food tips certainly resonate with me. My local shopping centre is only 10 minutes' walk away, so I shop every couple of days for fresh fruit and vegetables. This drastically reduces the amount of food waste.
I couldnt agree more, buy what you need for a couple of days and stock up on staples every ccouple of months
Try the carnivore diet, aside from stacks of health bebefits (many that your would never expect) and being so simple is next to no waste. I've been eating this way just over 3mths now and will never go back to eating plants.
@@Baabaabelle I eat plenty of meat. But I like vegetables and salads too. I'm quite happy being an omnivore.
An excellent method, especially for fruit/veggies. The only thing more expensive than buying is having it spoil. Food is packaged/sold to make it more expensive to be single. I often buy in bulk, on sale. ex: Skinless chicken breast at $1/lb vs $5. Holidays are often the time to buy. $6/lb for hamburger, I pass, maybe stock up around the 4th @ $1.50. I'll BBQ lots of patties, reheated later for tasty burgers, frozen raw for later cooking. My pressure cooker prepares 14 quarts of pulled chicken/pork, stew, soup, etc. Obviously I can't eat an entire ham, etc but Ziploc sandwich bags hold a meal or two and protect well in the freezer. Any type of bread freezes well, always on hand, always fresh tasting. $1.50/loaf at the bread store and bulk bagels/tortillas can be a savings. Besides, it's nice on a rainy September day, to enjoy a bit of BBQ w/o all the mess, have a nice ham sandwich or breakfast side in March. One for the table, one for the freezer was often our holiday prep.
Smart guy!
I've just retired recently and I must say I found this video informative and great to review. These psychological concepts are much more useful for individuals attempting to avoid mistakes than I realized when I was first introduced to them. This is probably why Warren Buffett talks so much about temperament being crucial to his investing success.
Developing a solid financial portfolio is more difficult, therefore I suggest you seek expert assistance. The ideas you receive after that can be tailored to your long-term goals and financial desires.
@Stanley Edwin The issue is this! Most often, those with little to no experience in the stock market attempt to buy on their own. It previously occurred to me, but I learned from it and contacted "KAITLIN ROSE STERNBERG" a finance expert with offices in the US, and everything changed. I earned $370k so far in the first quarter of this year.
@thelastunicorn1987 Exactly the point! quickly do a web check where you can connect with her, and do your research with her full names mentioned..
@@roseroland1998o
@@harrietlancaster44o
That’s what I plan on doing, staying outside the U.S for six months out of the year then come home for football season and holidays. I also rent one of my bedrooms out for passive income that actually pays 70% of my bills and he watches the house while I’m gone and he has an absentee landlord for six months. Best of both worlds.
Stuck paying ever increasing Rents. Used to go up 3% a year. Now it’s up 25% and climbing. Greedy corporations renting. Yeah, had a house and got divorced. No one ever told me rents could go up so high each year. Should be illegal. Not any other lower cost options other than selling everything and renting a room….which is not a life. I just have to hope rents calm down.
I was raised on a farm and we home canned our food to eat during the winter. I'm retired and still do home canning. I buy meats on sale and pressure can to be shelf stable for years. Roast beef from chuck roast on sale I end up with a pint jar of delicious beef and broth ready to eat for about $1.25. That's a full meal. Thicken the broth and then I have gravy.
Now that I'm retired I'm not traveling nearly as much as I thought I would. I watch movies and shows on RUclips.
I can all most smell the the great food from here
Saves money for sure
I live in an rv park on a beautiful beach in Northern Baja. My rent is $385 and includes electricity. My monthly grocery budget is $250. I'm 20 minutes from Mexico's "wine country," and there's plenty of hiking and camping nearby. Also a lot of fun to be had in Ensenada, Rosarito and Tijuana. I LOVE my life here. Restaurants, groceries and healthcare are generally 1/3 - 1/2 the price compared to the US.
Good for you! Enjoy your life! 😀
Dang. I thought I lived cheaply but you've got me beat.
Suggestion: hang your tools on a peg board in your basement/garage. You'll be able to immediately see what tools you own and will be less likely to buy duplicates/triplicates. Don't use a toolbox...tools get "lost" in there
I have doubles on a fair number of tool. Did residential remodeling and might find out we needed a specific tool, can’t carry everything, too far to head home to get the tool, cheaper to buy a new tool.
Home is paid for. No debts at all. We sometimes don’t start our 5 year old truck for days at a time. We take a lot of walks for exercise. Keep our deep freeze full of vacuum sealed portions of meat. We spend about half the year lounging in the pool and hot tub. Probably biggest luxury we have is travel to see the kids and grandkids. Life is good.
Agree. But how do we get around the property taxes? Besides moving.
@@dougB4454 I know what you mean. That’s a tough one. My niece lives in California and the small house she owns out in the country costs her over $5,000 a year in property taxes. My wife and I have a small 24 acre farm where we raised our children. When they were grown we bought a very nice house in town where we could walk wherever we wanted to go. 3 bedroom, 2 full baths , billiard room, library, pool , hot tub . Fenced yard for the puppies. Our total tax bill for both properties is $1,100 per year. So it really does depend on where you live. I don’t know if I will ever do anything with the farm but I am loath to get rid of it. Too many memories. But now we are only 25 miles from the Gulf of Mexico and the beach takes up all of our spare time.
Property taxes can be low depending on the property size and location.
Do you travel? Go to Europe?
@@joetatoesniff9525don’t have much interest in Europe. I’m on a five month road trip right now. Been hiking, and visiting my kids and grandkids. My niece is getting married this weekend so I’m heading to that next. Gonna keep going until I get tired of it then head home.
Always enjoy your informative content. Getting home repairs, updating old appliances and roofing done in the years approaching retirement is a sound strategy
I've lived in Europe for my entire working life (recently retired). When I lived in the US, people tended to shop once a week or even more seldom (possibly coming from our pioneer history, when you had to travel miles into a town and stock up on things like flour, sugar, molasses, etc.). There seems to be a notion of 'doing the weekly shopping,' in the US, and our fridges and freezers as well as cabinet space in our kitchens reflect the fact (and reinforce the habit) of buying huge amounts all in one go. Add to that the stores where you have to buy 12 packages of something and can't just buy what you need for today or the next couple of days.
In Europe, people have smaller homes, smaller kitchens, less storage space and smaller fridges. A 'half fridge' is pretty much the standard fridge for all but the largest families, and I only know one family that has a separate freezer (it's a 'half freezer'). People shop daily or every couple of days. They want to buy fresh bread today to eat today; they want to buy fresh vegetables and fruit to eat today and possibly tomorrow (for example, for Sunday, when many don't shop and when in some countries shops are closed). So since you are only buying enough for today's meals, with leftovers taken to work for tomorrow's lunch, there is much less waste built into the way of life.
As a person living alone, having no car, and needing to schlep home my groceries, I can't really buy more than I need for a day or two. Going to the store (green-grocer, deli, bakery, etc.) is part of my almost-daily round of activities, and I almost never throw away any food. If I do throw away food it's because I bought something like a head of broccoli and then got lazy and didn't cook it over a couple of days and eat all of it. Or I bought a bag of salad greens and then decided to fast and half the greens were nasty by the time I broke my fast. But food waste naturally goes down to a minimum if you are buying fresh daily. Of course, doing your shopping daily means that you see elderly people out on their daily shopping rounds all the time, and since it's Europe, this usually means they are walking and taking public transport, so they are more active than American elderly who might be sitting at home all week and then driving to the store for a huge shop - which can feel like an overwhelming task to the sedentary. Shopping every day is a social interaction, a physical interaction and an intellectual exercise that keeps the elderly (and everyone else) connected to their neighborhood community.
Once I moved out of my neighborhood of 23 years and lived 2 years in another neighborhood. When I moved back to my original neighborhood and went to the shops and post office and services I had frequented before, to my amazement, the clerks greeted me with, 'Hello! We haven't seen you here in a while! Where have you been!' I got the same reaction from various dog-walkers and people who walked to and from public transport on their way to work or church and had got used to seeing me walk by on my daily rounds.
The elderly should not underestimate the value of going to their local shops - on foot or by public transport, or even in their cars, but going to various shops - as a way to keep connected with a community of people who will notice if they don't show up.
The benefits of getting out into the community for daily shopping goes far beyond reducing lost money through waste of food because you bought too much and couldn't consume it in time.
We shop regularly for groceries in the U.S. as we always need perishables -- milk, eggs, protein, fruit and veggies. I believe Europeans also like to eat fresh veggies, though fresh fruits are not as abundant there as here (I'm thinking Scandinavia.)
An excellent point and it varies widely with different families and houses in the US. (Modern homes might have little storage, less likely a pantry area.) In most areas the local small markets have disappeared, if you don't count 7-11s and service stations, so it's a drive. Shopping is more of a chore, like taking out the garbage; get in, weave thru half a mile of aisles, update your phone ap to save 39 cents on olives, then often long lines. People are sometimes shocked and occasionally offended when someone says hi. Elderly people are more likely to shop regularly and interact since we have more time, and shoppers in high-end shops take more time. Others have more pressing things and just want to get it out of the way. As for stocking up, yes and it's designed that way. Buy 2 get 2 free, meats on sale you buy 8-12 pounds, items at a discount if you buy 6, and similar is common. Half price on potato chips are a bargain, but do I need a year's supply of chips all at once? (3.25 pounds of chips?) On the other hand, this is why America's BIG refrigerators (and often a separate freezer in the garage) are popular. Modern fridges will keep items fresh for a long time, many items (not veggies) for 6 weeks.
@FigaroHey, You speak of Europe as if it a single country. It is not the custom of every country that the citizens shop every day. People may go to markets or the bakery in some countries but not all. Where i'm from it was seen as the mark of a bad manager to go shopping everyday. Shopping habits change through the years, but still a lot of folk dont have time for shopping several time's a week let alone everyday. So dont assume that what folk do where you live is indicative of how the rest of Europe operates. I live within 10mins walk of 5 major supermarkets, local bakery 6 mins. Go to the bakery every 7 -10 days, buy my bread, cut & freeze it. Supermarket could be 3 times 1 week or i might not shop for 2 weeks. Life is too short for daily shopping.
@@lynnettemurphy8243agree!!!
We hosted foreign exchange students for many years the, especially the Europeans, we stunned at the distances we would travel to go food shopping., to school or anywhere. We live in Texas where it is not uncommon to drive 150 miles to meet someone for lunch and drive 150 miles back home within a normal work day.
A CPA talking about coupons etc, is impressive to me. Thank you! 🙋♀️💸
I get clothes from the thrift shop and no one is the wiser.
There is some really nice stuff there
Same!
I get clothes from the thrift store and brag about how little I pay, so everyone knows about it.
Been doing this for years.
Many of the clothes I have been complimented on have come from thrift stores. Most of the time I simply say thank you.
Regarding groceries as well, making meals ahead of time in bulk and freezing portion sizes is handy too.
This advice goes beyond retirees. Thank you.
The biggest expense in my parents' household is medical expenses, including prescription drugs. A medical doctor told me that living longer in bad health isn't great. He recommended that people avoid added sugar as much as possible to save themselves from chronic diseases later in life.
Excellent suggestion. I would add to that to cut out processed foods. Eat whole foods, low in carbs.
Good and unique doctor😊
I always feel that this is a place I can turn to for solid advice when I need it.
From what I can tell, one big ticket item was left out of the "top five" expenses in retirement; income taxes, which is my second highest percentage at 18%.
I’m not retired. I’m a teacher and I’ve been able to reduce my grocery bill by ordering online. I’m not wandering through the aisles picking up things I don’t need. I simply make my list online, pay, then drive to pick it up. No fuss no muss and I’m spending less at the store. It’s an obvious solution but it’s helped me since the pandemic.
Good for you! They make it so tempting to buy things you don’t need.
I do the same thing. I haven’t been in a grocery stores in a year at least.
Same, I hate grocery shopping in the store. I can't believe Walmart still does not charge extra for pickup orders. So convenient!
I make a weekly menu and my list is for buying what I need for meals , to restock what's run out or running low and to stock up my long term pantry. Saves me a lot of money.
I’m 58 and self employed , 7 rentals all paid for and our house mortgage free for last 15 years - I started preparing 30 years ago and ready for all government incompetence. My wife works in healthcare and retiring this year due to management pressures .
Good advice to people who are feeling the pain 🙋🏼♂️👍🏻🏴.
I freeze the extra bread and foods. I only buy monthly, except for good sales and produce. The more you go, the more temptation there is to buy extra.
Same here. I started going once a month about 6 months ago. I keep a running list all month and only spend a max dollar amount. I often cook 2 or 3 servings of something and freeze the extra for other meals. It’s a great deterrent for just browsing around and throwing tons of stuff in your cart cause it “looks good”.
I have worked for years doing federal surveys, including those Bureau of Labor Statistics ones you base this on. It is totally cool to see my life's work come back to help me. But also to know it helps lots and lots of others. That's made it worth it to get out of bed and go to work all these years.... My retirement is coming up in a few weeks. Your info has been greatly helpful. Thanks.
Amazing! This segment was spot on and touched on quite a few areas I have been thinking of. THANK you
Especially great video! Thanks a million, Geoff.
I always have a list when I go grocery shopping; if there's one thing I hate, it's being listless.
We make a list on our whiteboard and take a picture of it before we go to the store.
@@johnscott2746Same!
😂😂😂
Cute🥰
I wasn't financially free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing!Very inspiring! I love this
@Chris Young Her name is Laura Marie Keilman. Look her up online, she is quite popular in the united states and she is a certified financial adviser in order to put you through the procedures of achieving your dream portfolio.
@Chris Young look her up on the internet and leave her a message she's quite popular for her services as she was recently featured on cnn. She can work with anyone irrespective of where your located.
@Chris Young I do the same thing, I do not have big money on bank account. With the right property in market and sales advisor, we will be on right track. Right now 3 estate done with loans which I turn to plantation and earn money from it, 2 more to go.
Financial stocks are crashing due to debt. That info was true up until 2022. So your info is not true
These are spam chat bots recommending that woman’s account. I’ve seen it in other sites (not investment related). Note how all the posts show up at the same time and are SO HELPFUL (big flag, no trolls? Really?).
Fantastic!! We appreciate all the support you provide on your channel
This is the single most useful retirement video I have ever seen.
I dollar cost average with my 401k contributions and buy dips and "good deals" with my leftover cash. This strategy has made me a millionaire. I'm at the point now where I will have FU money in 6 years simply by saving cash. My "risk" is not taking a "risk" with my cash and waiting out for an opportunity. If no opportunity arises in 6 years, I still win. F it!
You have to plan carefully to be debt-free before you retire: In Great Britain you MUST pay off your mortgage before you retire, so they buy a small(er) house they can afford. Very wise. Push it to pay off student loans, stop buying unnecessary things, including clothes. Buy quality that lasts. I did all this and it's worth the effort. It is priceless to live debt-free.
I can confirm that was the case in 2011 when the Bank Manger reduced the term on my mortgage application by one year to ensure it would be paid off before I am 65.
However, the latest "scam" which I see adverts for all the time is "Equity release". Cash in on the value of your house to go on a cruise, buy a new kitchen, and new car, and then find you can't downsize because the equity release company owns most of the house.
@@MrDuncl Yes, we have the same loans here and they rob the loantakers. I have saved first and bought later, have avoided buying for buying's sake and I have learnt to be content with what I buy. Consumerism is all about needing and discontentment.
Advice starts at 3:45 Thanks for sharing this advice. Very useful!
I retired early this year and have been tracking my spends in detail for the last 3 years, never thought to break out the spends as percentages, this can tell the story and help in my analysis as well.
Good points, a few comments:
A couple in retirement probably has about a fixed cost of 340 medicare, ~300+ supplement, 80 drug, and 50 dental...so there isn't much to do about $800- 900 fixed monthly, unless you go the Part C way (denials and copays) and get it to around $400 (ok if you don't use the Part C system extensively).
Entertainment and auto costs are linked together so inflation is ravaging this expense (wage and price spiral), but I agree on the entertainment is more controllable.
I don't think retirees are wasting food, so I'm perplexed about this item (I agree and follow your suggests on food shopping)
It is important to whittle down the housing (as much as you can) to just property tax and utilities. I would not expect much support on the property tax, unless you're close to poverty. Yes, you can sell your house and move overseas.
All in all, I think people should focus on generating income to offset these largely fixed costs.
I think your video, will just frustrate retirees. Yes, you can and need to limit your expenses...but there is a lot of fixed costs not variable costs in retirement. Variable costs can be controlled, fixed costs are very difficult to change.
No offense intended, and I do like your videos...but I'm thinking this one is a bit tone deaf
Amazingly, my retirement expenditures average out to about the same, except no mortgage as I downsized from a single family home to a condo by the sea, which I paid cash for.
One of the best money advice i ever heard. Thank You!
Great video Geoff!! I’m still a few years away from retirement but gratefully debt free! Keep your fabulous videos coming!!
What you are saying about private brands and other brands is true. I studied this in my Buyer Behavior class at university. I even gave my sister ( who buys at Whole Foods ) a fruit taste test. She guessed lower priced as the Whole Foods label.
This administration is putting many families in difficult situations. A lot of people are financially struggling to live, put a roof over their head and put food on the table. Things are getting worse these days, if you don't find means of multiplying your money you might wake up a day to realise you didn't plan well for yourself and family.
I agree with you and I believe that Professionals are currently dominating the market since they have access to both the necessary strategy for making money in this industry.
I invested 10k in Robin hood and 401k about a year ago and it steadily went down, now my portfolio is down to $800. I don't know what to do and i am in between jobs
@@face2lune Understanding your financial needs and making effective decisions is very essential. If I could advise you, you should seek the help of a financial advisor. For the record, working with one has been the best for my finances.
I’m Glad i stumbled on this. Please, if its not too much of a hassle for you, can you drop the details of the expertise that assisted you and how to get in touch….
@@face2lune I get guidance from *Susan Tori Davis* Most likely, the internet should have her basic info..
Thanks for sharing this information. You put a lot of effort in your presentation 👏 💯 👌 🙌
Also, when buying a car, pay cash. Money, I set aside for the car was earning about 8%. That is opposed to paying 2% on the auto loan. It also helps when negotiating price as you don't care about the financing. You settle on a price and write a check. The salesmen know that you have the power to walk out and see the next dealer and will work with you to close the sale.
auto dealers hate cash deals... they make a commission on writing the loan too...
8% ? Are you sure ?
I have a simple method to reduce food waste and maintain quality. I usually go to the grocery twice a week (avoiding peak times) and use a shopping basket rather than a shopping cart. I stay on the perimeter--produce, meat and dairy sections, unless I specifically need an item outside those sections. Once the basket is full, I'm done. It reduces the time I spend in the store and checkout is quicker. Once every 2-3 months, I use a shopping cart and stock up on non-perishables and semi-perishables.
Great info! Thank you! Only thing I would double check on. Allowing someone to drive your car that isn’t covered on the insurance policy does NOT automatically cover them in case of an accident.
Learned first hand helping an elderly friend. While stopped at a stop sign.
A pickup truck towing a utility trailer side swiped the left rear end.
Long story short, I paid over $1800. For the repairs to her SUV bc she couldn’t afford it.
Ins would not cover me as driver.
I never drive anyone else’s vehicles anymore.
This was fascinating. Thank you!
Very helpful and I enjoyed the longer video!
Debt free should be “everyone’s” main goal. Sacrifice now and enjoy a stress free retirement later. Just imagine owing your house outright…….. It’s a life changer people……. If it was easy, well, you know the rest of that statement. Enjoy the day 😊
that's what i did.
I paid off my house last year. It's a great feeling. It would be perfect, it the property taxes were not so high. At a certain age it's cut for elderly.... but I'm not there yet.
Easier said than done with prices doubling due to inflation. 😶
If one is willing to delay gratification, it is easy. Others don't see the sacrifices -- no cable, seldom eating out, living below one's means, big vacations every year's -- while it's happening.
@@travisadams4470 , yes! It is liberating.
Just found your channel, enjoying the content. Sage analysis for any age group and implementing these options earlier could change the course of our lives. I only rented a car for many years, CA offered tax breaks for carpooling which I also did for years. Many cities have ride sharing, really look for programs. Home sharing such as Golden Nest. I have lived outside the US for 30+ years, research pros/cons and visit for three months before you invest, move there. I see many move and then need to move back.
Well Done... Great thorough Checklist for the Retiree. Thanks!
So great! Very informative- thank you so much.
I learned from a retiree long time ago that secret to retiring is paying off your house as soon as possible. He paid off his house in his late 30's and retired at 50.
I retired from an agricultural company. We grew fruits and vegetables all over the world. We packed lettuce for every major retailer and every major foodservice company. Those products were packed from the same field, by the same harvesters. One harvest crew might be packing 5 different name brands. Many customers required us to pack things in their label.
We own a company in Montana that grows and processes bison. About 75% of that product is packed in private labels.
We are healthy so we chose an Obamacare plan with a high deductible. Our payment is $173 a month, much cheaper than our work insurance.
@beachwalker if i couldn't afford to have a $13k deductible I wouldn't have signed up for a high deductible plan. Rather than pay $700 a month for low or no deductible, I am banking on not needing much medical help. Of I wind up needing surgery or emergency room care, I'll have to pay up to a maximum of $13k. That's $1,100 a month or $900 more than I'm paying for my plan. We are healthy right now so it's worth the risk.
Everyone is different. I had low deductibles when I had kids.
Your videos are so good. So glad I found them!
I’m giving you a thumbs up because I think you deserve it and many people can benefit from this video.😊
Thank you Sir. We were able to put a check mark next to each category as already being practiced in our household. Never hurts to have some affirmation though.
It’s hard to believe that people actually throw out 30% of every bit of food that they buy. I doubt I throw out even 1%. I look at food as if it were dollars because it really is. Would you ball up your dollars and toss them in the garbage? It’s too hard to come by to waste.
Buying very little meat saves money. Heath care costs. Keeps the house cleaner. Better environment. I buy a few cans of fish in a month. That’s it. Beans are cheap and tasty. These foods keep too.
If you grow your own you are a lot less likely to toss it away
During Covid, I got in the bad habit of buying too much food for fear they would run out if something . Then I had to throw stuff out.
I pretty much eat ONLY meat, eggs, fish and a bit of dairy ( carnivore diet) and have done for 3 years. I buy a half cow every year and store it in the freezer. I eat everything I buy (except some fat - I can’t use all the fat). I only eat 1-2 meals / day. When I ate veggies and fruit I was constantly throwing out food that went bad in the fridge before I could get around to eating it. I save a lot of money eating this way and I use that money to help pay for my fitness sessions at the gym.
I try to avoid tossing food but sometimes things just get old before I can eat them. Now I buy smaller containers, which doesn't actually save me much money but I feel a bit less wasteful.
Thank you Geoff!! I am soaking up all the information I can from your videos!! Love them all! 💕 making it not so scary to do this! Educated is the best way to do it!! Whatever age you choose! 😊
Thank you for this video. Found it very helpful.
Thank Geoff I already do everything you've mentioned in this video. It's nice reassurance for me to know I'm on track!
Well done Terry
This video has lots to offer. Nice job on making it!
Thanks KM!
Thanks Geoff! Good information for my retirement December 30!
This is so helpful! Thanks!
With regard to groceries and, as a result, reducing waste (of food and money), something that we do is plan our menus about five weeks out. The first time was a challenge because we had to plan all five weeks. We now update our weekly menus every weekend so that there is always a rolling five-week menu in place. This allows us to know exactly what we need from the store and when to buy it. Also, it makes it easier to eat more healthy and varied meals (getting out of the dietary rut that we were in was a primary driver when we started this). We also stick to our menu plan. We prepare simpler meals during the work week, rarely go out to dinner (and when we do, it is in the plan and for a special occasion), and don't order take out. What little food waste that we do have goes into the composter for our garden. It does help that my wife and I both know how to cook and enjoy doing so (often with a glass of wine in hand--but only after the prep work, e.g., chopping, has been done). Also, we bring our lunch to work (eating better for less). As an additional benefit, we have both lost weight such that we are now back to about what we weighed when we got married--forty years ago. On a different note, although still "fuel-related", Gas Buddy has been awesome! We have reduced gasoline costs by a good 20%. Keep up the great work, Geoff!
You are so organized with food! I love the idea of the 5 week rolling menu! Thanks for sharing your system!
That's a great idea. I'd think maintaining the schedule would be easier once established. My parents did much the same, but a weekly menu... pretty much the same food on a given day, with occasional changes around special events. (Had to eat up all the holiday leftovers.)
Shop at Costco and buy the Kirkland brand. It is rumored that Kirkland is really brand name items repackaged.
My second thing is my chest freezer. When things go on sale, at Costco, stock up and freeze them. I use a vacuum sealer.
We shop at Sam's Club a lot. I also have a Sam's plus account which gives you free shipping on stuff online that may not be in the store. They do have cheaper eyeglasses there too. I was thinking of getting a Costco membership too for the fuel savings and the Kirkland brand of meat which I heard is good. We do have a food vacuum sealer too.
@@jdenino6022 the rib eyes at Costco are second to non, but they are expensive now. The gas prices are debatable depending on the city and store location. It's obviously because of the crazy California taxes. Ever since retiring, I cancelled my vision insurance because of Costco's low cost exam and glasses. If you can find a "commercial" type Costco, their prices are even better, but you do have to buy in larger portion sizes.
Enjoy your videos. I always learn something. For the most part, we are doing everything you have recommended as far as cost savings. The tip about taking a list with me to the store is golden. I usually make the list in my memo section on my phone, or I've been known to write the list on a piece of paper then take a picture of it to have in my phone. No more lost lists. I do fine, as long as I don't deviate from the list. The morning before I go grocery shopping I get online and check the store specials and try to utilize as many of those for cost savings as possible. Your discussion about the in-store brands is fairly accurate but there are store brands that are NOT the same quality as name brands. It all depends on how picky you are. For example I buy organic brands of ketchup only because it does not contain corn syrup and I prefer it's taste. The cost is not much more than regular ketchup and it's worth it to me. I've had great luck with the Target, Homeland, and Kroger store brands, not so much with the Walmart Good Value.
You are so correct about people not knowing or understanding their health insurance benefits. I worked in the medical industry for decades and was always shocked at how little so many people knew about their benefits. I will say that it can still be a crap shoot with some insurers. It depends on when, who and how the claim is processed. Some claims are time-sensitive and must be submitted within a certain time period. If you haven't heart from your provider or your insurance for a while after services are rendered, I recommend checking into it. Make sure those claims were submitted and received. Fortunately insurance companies are being required to be more transparent about how a claim will be processed, but the first thing you hear when verifying benefits is "This is not a guarantee of coverage." Well that's just fantastic.
I will continue to watch and learn from your videos, and I tell my kids and friends about your channel. Keep up the good work.
Get a food saver; a vacuum sealer and get your bags for it at Costco when they are on sale. I am single and buy items in bulk to get a great deal. I also force myself to break up the items into single servings and freeze most of them, even the fresh items last days longer.
Thanks Mr Schmidt, first since we retired 5-years ago and post covid we are traveling like crazy. You never know when your health will go so we are traveling. So far Egypt was the best and I highly recomend it going with a tour group (dont do it yourself). Once I retired our income increase by 50% through pension and SS. I no longer contributed to 401K (maxed out every year) and all the misc taxes have stopped. Have the best car of my life and world travel. My key was starting to save early in your working carrier
Congratulations!!
Nothing wrong with store brand,no name brands.Whole foods is not necessarily better.People are so into status symbols it's self destructive financially.Also I have often found new items in charity shops and consignment and it helps others and the environment as well as my bank balance 😀
I grow as many vegetables and fruit as I can to help my budget. It gives me purpose and activity with a big dose of enjoyment.
Garage sales too and fun meet new people
We always called whole foods , whole paycheck. Highest store around
@@jameskelly9243I went into that store last week to check it out. Unbelievably high prices!
Thank you. Great presentation!
Thank you Geoff. Great content.
Bingo, my friend. While you're still working and right before retirement, do all of your repairs, fixing up, etc. In this way you are not spending savings, rather you are using wages, or new money, to pay for these items. Well said!
That's what we did,new appliances, new a/c,roof ,no debts,no stress
@@rebelsixtynine1 I fully retired 10 yrs ago at 59. Everything was paid off and just last year, I had the roof and exterior remodeled. Waiting another year so I can collect my max SS.
One way that I save on my house expenses. We are empty nesters and not interested in down sizing our home yet, but I do put a curtain up across about the 12th stair up on my staircase to the 2nd floor. I have extended a clear plastic shower curtain across the very top using a tension rod - it extends about 5 feet out which then meets up with the curtain and falls to the back side of the curtain. The curtains actually match the ones hanging across my open concept living room so it looks good. To the point, this prevents the heat from rising up there in the winter and it really makes a huge difference. If my out of state children come to visit I can easily move the curtain to let the heat rise (and I turn up the heat upstairs.)
We are very fortunate to have a great Dr. and office staff. We're retired so our insurance is renewable every year. We can call and ask about insurance companies and see which ones pay well without the hassle. They have been a wonderful resource as well as being a wonderful Dr who really cares about us.
Such a wealth of great information. Thank you!
One comment about buying new vs. lightly used cars. I bought a new car about two years ago. Before doing that, I did an NPV analysis over the life of the car. Because the used car maintenance cash flows would occur two years earlier and because the life of the new car would be longer, the new car had a higher NPV. I did not care about depreciation as the car would be fully depreciated prior to when I would be selling it. Everyone is different. NPV might be a good topic for future videos as it really helps when making financial decisions such as this.
Stop buying shiny cars. The end.
Man! I really love this channel!
Spot on love your information and I follow most all of it
Solid advice. A couple refinements:
1) Health Insurance - it isn’t simply knowing the deductibles and co-pays… we’ve often found medical providers mis-code the procedures, often intentionally because they know the code they use kicks the “procedure” outside your coverage! Because insurers negotiate *discounted* standard procedure rates, you’re now on the hook for the provider’s higher “shelf” rate.
In fact, this set of discounted rates is critical selecting the right insurance provider.
2) Auto and Home Insurance. A bit of wisdom I learned from the smartest man I ever knew, my dad… “never insure something you can afford to replace”. That eliminates 95% of extended warranties (both auto and appliance) , which are simply another form of insurance.
But it also means selecting the highest auto/home insurance deductible you can afford. In our case, it usually results in the highest deductible offered by the insurer. This can lead to big savings that add up every year.
Or think about it this way - don’t many of us resist making a claim if we can cover it ourselves… since making that claim is likely to drive our future rate up?
Good points!
@@HolySchmidt Bingo on medical miscoding, and they won’t correct for snything.
Whole Foods, Safeway, Trader Joe's, Costco, military commissaries, and even Walmart have terrific house brands.
Retired and so glad for my pre planning.
Told my former coworkers that my retirement car was going to be a Prius. Bought it before retiring(pre owned). Paid it off during the last year of working and first year of retirement. When gas prices went up it didn’t hurt nearly as much.
Took that payment and added it to my 7% mortgage. House (small house) has been paid off.
The state that I live in gives discounts to retirees on property taxes and I took advantage of that.
Tip about combining car and home insurance bundles also has paid off.
One thing is that instead of monthly payments both bills are paid in full once a year and there is an additional discount for that.
It’s all about knowing the rules and playing the game.
Also for those just starting out to buy a home don’t let them talk you into buying more houses than you can afford.
Best wishes to all who are starting or in the midst of this journey.
Thank you for the info on auditing classes for free!!!!
Being debt free is a choice just like anything we want in life.Get a plan work the plan and focus until you achive it.
@@beachkid1 Nice! My wife is Thai we will move to Thailand for retirment.Both places are easier on the wallet and great weather to enjoy our days.
Your videos are fantastic and I watch all the time. I have a comment on this one, not as criticism but just my experience. First, about couponing; todays technology allows me to receive a weekly email on Wednesday mornings from my favorite grocery store with all the ads and certain specials on things I buy regularly. I go through their app on my phone or laptop and click on the ones I might purchase while I work up my grocery list. Through the app, the discounts are applied automatically at the checkout when I simply enter my phone number. I don't mess with paper coupons or waste time. In addition, I accumulate "points" based on my total bill that I can use for a discount at their gas station located on premises. Yesterday I received a $1 per gallon discount on my gas. Since both of our cars were low on gas, I took along a couple gas cans and filled them too at the discounted price and that was sufficient to fill the other car with cheaper gas when I got home. I know, more trouble than most people would go to but it made me feel good.
Good point about packaged food. I had a relative that worked in the packaging business. We visited their plant once and watched them take a huge bag of oatmeal to the top of a machine. They opened it and filled packages for 3 or 4 brands. Sometimes these brands are all sold in the same store, and people will swear that brand X is much better than brand Y and well worth the higher price.
Great video! Please make more.
YES! Go to the grocery store more frequently!!!! BUT, shop with a list & get only what you need for the next few days!!!!
I get into trouble when I go too often. I grocery shop 1x a week, whenever I run out of milk and eggs.
I goto store more frequently, it works for me -no food waste. We do not waste one third of our food.
Whole Food is called Whole Paycheck.😂
What a great video Geoff
Great information as always ! Thanks
I call Whole Foods ...Whole Paycheck.....Aldi's has some great produce at significantly reduced cost