Posts tagged ‘personal-finance’
We have just finished the annual ‘season of shopping’. What follows are some shopping memories, a time when you only bought what you could afford.
LIFE ON A SHOESTRING
Some time ago I heard a report which stated that the average person carries about eight thousand dollars in debt. I am sure that that amount has increased since then. I have only a couple credit cards and try to keep my debt under control. I also use my credit cards as seldom as possible for they can be easily compromised. But on hearing this broadcast, my mind wandered back to my youth, a time when people not so much lived without but lived with what they could afford.
For most of my youth credit cards did not even exist. They started flourishing in the 60’s so, when I was young, they were not even an option. My parents didn’t even have a checking account. When there was a bill that needed to be paid we went to the drugstore and got a money order. Money orders were the only way we sent money through the mail.
In my neighborhood, credit was not as much a way of life as it is today. People lived on what they could afford. With the exception of houses and cars, you bought what you could pay for then and there. I must admit just writing about life without credit seems so foreign and unreal. Buying just what you can afford seems like such an odd concept, yet that is the way it once was.
The way a person received their pay was also different in my youth. Friday afternoons, my dad was home from working at the tannery for hours, but he had to return Friday afternoons to get his pay. I would sometimes take a ride with him; you could smell his place of employment long before you could see it – Ocean Leather – gaining this name because it was the only tannery at that time that could tan shark skins. We would drive around to the loading dock where drums of chemicals stood, the soil, stained shades of purple and green was soil to be an OSHA nightmare. So, into the building we would go, past large rooms where various stages of tanning was taking place, and into the office. Here my dad was handed a brown envelope with bills and change and that was his pay. That’s the way people were paid back then; you actually held your pay in your hand. It was not electronically sent to your bank from which you electronically paid your bills. You were able to hold what you earned, actually see it.
Friday was also allowance day for me, as it is now for my children. For completing my choirs, I received fifty cents a week, and when I could really control my spending – not wanting another model or book – I turned those quarters into a dollar bill, real folding money, which I would immediately take to the cellar and hide. In some respects, I never did get over the hiding fetish. I still have hordes of Kennedy quarters and half dollars along with a plastic bag stashed away for the new state quarters being minted. To this day a quarter to me is still real money. Although my kids make fun of my concept of value, with a quarter in my pocket I’m okay. How things have changed, and how I remain the same.
January 3, 2026 at 2:55 pm
ANOTHER RETIREMENT OBSERVATION
I have reported, in the past, that ads saying they can tell you how much money you will need upon retirement to maintain your lifestyle, in my opinion, are scams. I feel the most important question which needs to be answered is how long you will live. The only people unfortunate to be able to answer this question with relative accuracy are those with a terminal illness.
Not long ago I heard statistics which gave me pause. It concerned salaries. I thought salaries are an important consideration needed in planning retirement. How long you will be retired and the changes in salaries and the price of goods are also important in determining how much money you will need, and I don’t see how anyone can accurately make those predictions, of course coupled with lifestyle.
I look at my own experience with starting salaries and length of retirement.
When I graduated from college in 1969 if you could find a job paying $10,000 a year you were lucky.
Not long ago I heard a report on salaries required by 17–28-year-olds seeking employment. One thing I found interesting is that it used to be during an interview salary was never mentioned until maybe the end. Now it appears that one requirement of the job posting is to list the salary along with the job description. Also, consider that the salary wanted by this age group, for many, is probably what they want to be paid for their first job.
Some applicants in this age group required a salary of $50,000-$100,000 to consider applying for the job. Twenty-five percent of this age group required a salary of $100,000-$250,000 to consider applying. Granted the salary considered great at $10,000 was 56 years ago. But some could be retired for 30 years or more. I’ve been retired for 17 years and can’t believe the increase in salaries and consumer prices since I’ve been retired.
Therefore, I think for anyone to advise you, upon retirement, how to have a financially worry-free retirement they would have to be able to predict the impossible.
First, and most important, is to determine how long you are going to live. That goes hand in hand with the salary you were making when you retired and at what rate salaries will increase during the rest of your retirement. And finally, the rate at which the price of goods will increase taking time and inflation into consideration. The answers to all these questions, I feel, would provide you with a worry-free retirement. But who, with any honesty, can provide the answers to all these questions?
June 19, 2025 at 5:20 pm
THOUGHTS ON RETIREMENT
I’m going to step away from the subjects usually contained in my posts and focus on the subject of retirement.
It has recently been reported that many folks are not saving enough for their retirement. The fact that 47% of working people cannot put aside $1000 for an unexpected bill. How can people save for retirement when they have so little cash available?
There are numerous ads for various schemes guaranteeing you a percentage of profit from your investments no matter what happens to the stock market. They guarantee you a safe and secure retirement.
I’ve been retired for fifteen years, and, in my opinion, all these guarantees are BS. The only individuals who are assured of having a safe and secure retirement are those who have enough money so that no matter what happens to the economy and the stock market their future is safe.
In my mind there is one important question, the most important question, which must be answered before you discuss the quality of your retirement. How long are you going to live after you retire? For the longer you live, the less the money you have saved is worth.
I look at the cost of living now and compare it to fifteen years ago. I look at current salaries and compare them to my salary fifteen years ago. Fifteen years ago, my family’s income provided a comfortable life. That same salary today might pose a struggle.
Some of the retirement plans offered guarantee that you can maintain your lifestyle you had before retirement into your retirement. That guarantee, I feel, depends upon two factors. What is the lifestyle you plan to maintain and how long you live once retire?
In reality, as all things in life, there are no guarantees.
December 12, 2023 at 10:11 pm
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