Monday, March 28, 2016

One of the three parts of our foundation.



Early saving and spending was encouraged by two books.
Master Your Money came out shortly after our youngest was born.
Ron Blue outlined basic principals 
on how to lay out finances.
He seems to be the father of the "baby step" program
that Dave Ramsey grew to a multi million dollar business.
We became an envelope/pay yourself first family.

Later, that same year, we met a financial advisor.
She was newly divorced with a young teen to support.
Smart as a whip, she knew it was important to start NOW.
We invested in Fidelity. 

1989 was the last time we had credit card debt.

The advisor gave us Jane Quinn's Making the Most of Your Money in the early 1990's and told us to read the Financial Times every day. We ended up with the Harold, but the idea was the same. Gain a base of knowledge and accumulate information about companies.

We learned the market and took some chances with cyclical stocks as well as long term investments. 

Years went by. Our broker retired. She was our last real advisor. We became acutely aware that if we were ok with the risk, we were the only ones who really cared about our money. 

We cashed out of our Fidelity to purchase our first house (sixteen years into marriage).  Our comfort level was, " a house paid off is more important than the risk in the system". 

After getting our "children" settled (one did college, the other didn't), we worked on simply building up our own accounts. Lived on one salary and saved the other. Stocks were chosen, bought and sold. Homework, homework, homework. We doubled our accounts and then really looked to see, we were in the position to retire.

Did you follow a similar path? What was the best move you made saving before retirement? The best?

1 comment:

  1. We never "did" debt, outside of student loans(Hubs), home mortgage and 2 cars we financed(one in 1986, one in 1994). We did pay all those debts off early however as we saved and our income grew over the years.
    I may have paid interest on a credit card very early on in our marriage but by the time our kids started coming(1991)I haven't had a credit card balance since.

    We never had a broker or financial advisor since Hubs works in the business and knows a lot about investing. Our bank once had us sit down with their financial investor person to go over our balances/goals back in 2002. After he told us I was stupid to want to pay off our mortgage early we said, "thanks but no thanks" and left. He was only interested in putting $ into his pocket by selling us investments and not giving us good financial advise.

    The best move we made was automatically putting retirement $ away from the beginning of Hubs career before we even saw the paycheck...and then upping that automatic savings amount as his salary grew instead of using it to inflate our lifestyle.
    Stopping the financing of vehicles was smart move #2. Wish we had gotten out of that rut sooner.

    We paid off the current house in 2007, thus becoming totally debt-free and socked away every cent we could into savings for college for 3 kids. After funding college we saved any extra income to accentuate what we are saving for retirement.

    The worst move we made was using what little we made off our our first home using to pay for the crappy car. Though we are pretty finance savvy we aren't car savvy.

    ReplyDelete