We were with some friends and we were talking about finances. One friend happened to mention that we were fortunate to be "comfortable." I didn't say anything really to respond, but it sort of made me wonder, is it all about luck or did I perhaps have a little bit to do with it?
I am not going to say I don't spend money. I do. But, I try to bargain hunt. I grew up relatively poor. Not dirt poor, but there wasn't very little for extras and most of the stuff I had was bought used. I saw my parents age and even though they worked hard their whole lives, they never really got "comfortable." My dad was always trying to figure out a way to make more money. He worked a full time job as well as doing jobs on the side. My mom helped run a used furniture store they had for awhile and then did garage sales and quilted. I knew once I had a full time job, I needed to figure out something for retirement because I didn't want to work until I dropped if I didn't have to.
I listened to a couple of people I worked with. Before I got hired as a teacher, I worked full time and picked up extra work when I could. I started a small IRA. They said the idea was to start saving young so the money had a chance to build.
When I was hired as a teacher, I went to church with a financial adviser and so I asked to meet with him. He was starting out like I was. I told him someone had said something about a retirement account where you pay low taxes when you retire. He explained it was a 403b and how it worked. It took out pretax dollars and then when you retire and drew it out, you paid less taxes because you should supposedly make less. Let me tell you, making what little I made at the time, taking out $50 a pay period was hard.
Fortunately I did not have school loans because I had some scholarships and worked throughout college and paid everything off before I graduated. Someone asked me how I did that and I explained that my college time, although a good time in my life, was not one where I spent a lot of money. I didn't go out partying on the weekends. I rarely ate out because if you lived on campus, you were required to pay board which was a food service plan. Spring break was spent at home. My folks helped out with buying clothes and shoes (mostly from garage sales), and snacks from Aldi. I ate more peanut butter and saltines for snacks and when I ran out of peanut butter, just saltines. I didn't have a fridge so I drank water in a glass from the fountain. Usually it was cool and I really lived it up when I got some iced tea mix. During the winter I had a little "hot pot" which was a small electric kettle and I had hot tea and hot chocolate. Am I sorry for not living it up -- not really.
Anyway, as DH and I got money ahead, the financial adviser (same wonderful guy!) directed us to other retirement options like a Roth IRA. I still have that small IRA I started years ago and it is still kind of small because the Roth is a far better vehicle for us now.
As I said, I spend money. But, I try to plan my purchases. I shop sales. Heck, I shop thrift stores, flea markets, and garage sales! We save for things. We recently put on a new roof. Actually we paid to have it put on. No home equity loan here...we have been saving for the past couple of years. DH went and got the money out of the credit union account and put it in our checking account and we paid for it when it was finished. We save for Christmas and we save for vacations.
Am I fortunate? Yes, I believe I have been blessed. I guess when he implied I had been "lucky" I kind of bristled at this...I worked hard and as an educator, realized I would make more salary if I had more education so I earned a master's as well as hours beyond my master's. This increased my pay. But, I didn't inherit tons of money. I worked and saved and DH worked and saved. So yes we are fortunate, but I also think we used our brains to help ourselves. Do you think I was wrong to bristle at this friend's implication?
Fortunate, Lucky, or Smart?
June 3rd, 2016 at 07:55 pm
June 3rd, 2016 at 08:15 pm 1464984910
June 3rd, 2016 at 11:06 pm 1464995201
June 3rd, 2016 at 11:44 pm 1464997485
You were smart! You made the most of what you had and didn't take it for granted.
June 3rd, 2016 at 11:54 pm 1464998053
June 4th, 2016 at 12:45 am 1465001146
Believe it or not, MOST people do know that luck had nothing to do with it. It is just a figure of speech that should not be taken literally.
June 4th, 2016 at 03:52 am 1465012347
June 4th, 2016 at 02:19 pm 1465049940
June 4th, 2016 at 05:34 pm 1465061662
June 5th, 2016 at 12:36 am 1465087012
June 6th, 2016 at 03:02 am 1465182139
June 8th, 2016 at 04:46 am 1465361210