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Many of you know I was poor all my life. I desperately needed to save for retirement, but I had absolutely nothing saved. Fortunately, my new job offered a retirement plan. I started late, so saving for retirement is important to me, especially because I live alone – and likely to die alone.
2020 has been a scary and unstable year. I was hit hard financially (long story skipped). Things are now looking semi-normal. So, I assessed my financial situation and made the needed adjustments for 2020. My plan is extreme. But I am going for it.
It’s September now. For the next 4 months (the rest of the year) I will receive 8 paychecks. For that 8 paychecks, I am investing 50% to 401K. This will put me back on my retirement track. After investing 50%, I will take home 33% of my paychecks. This is extreme. It looks like this.
This is an unrealistic reduction of take-home pay. But I had to try this. I will make a game out of it. I will make it a personal challenge. It doesn’t matter how I do it. I will survive the next 4 months with less cash. This is for my retirement. I imagine myself 30-40 years older, possibly immobile, and still living alone. I am giving him my money. Hence paying me first.
I am lucky that I’m healthy and have a steady income. There are millions of us without income and/or cannot pay rent. I know how it is to be poor. But this pandemic is different. It’s scary to imagine what’s happening to them.
For now, I will survive the next 4 months. I shall take it day by day. I will cut down on everything. There will be no more Sunday coffee and no more online shopping. My Costco shopping will look sad for the next 4 months.
Today is September 10, 2020. So, 10 days down – 113 more days to go.
Please take care. I will talk to you soon.
5 thoughts on “Extreme Saving – Paying myself first”
I’ve thought about doing a little experiment myself where it comes to challenging myself financially. The accounting side of my enjoying analyzing my household expenses, it gives me a chance to better plan for my short-term and long-term goals. I’ve been toying with the idea of eating out of my pantry and entire refrigerator and replenishing with clean and healthy foods. I’m wanting to transition to a better and healthier eating habits before this year is out. I look forward to hearing about your 4 month goal.
Thank you. Yes, I will update you.
If we voluntarily create a challenge to improve ourselves, we are already at advantage (compared to doing it because my family members told me to). Good for us.
Your idea sounds fresh and positive.
Good luck! I have had times in life where things were really lean and also tried to make it a game on how much I could save when buying things. You can do it!
Thank you, thank you.
Property tax is the biggest expense that’s coming up (Nov. 1). Then I’ll be half way there.