I read recently that our incomes peak when we’re 45 years old. That got me to thinking about retirement.
One way or another, I’ve been preparing for the “long term” ever since my dad told me a long time ago to “pay cash for everything.”
That’s not the way it is for everybody, though. And I’ve actually done some work to come with a solution for folks who might need to do some “catching up”… you can learn more about that right here.
Today, though, in this five-minute video, I talk about how to avoid “lifestyle creep.”
I’ve pretty much stuck with my dad’s advice and lived within my means.
When my income climbed, I resisted the temptation to buy a bigger, “better” house… mine was perfectly fine. In fact, it was nice. So, I paid down my mortgage.
I continued to max out my contributions to my tax-advantaged 401(k) and IRA accounts. I didn’t spend like crazy. I wanted to be free of “The Man” as soon as possible… And I paid off that mortgage in 11 years.
I’ve moved on to my second house.
Decisions I made a long time ago have given me the flexibility to do things like take care of my father. He lives with me now. I did spend a little more than I thought I might. But I did it because we wanted to have certain things that made it easier for my dad to live here.
I continue to live well within my means. If there’s one thing you can do right now to make your future a little brighter, it’s don’t buy s**t you don’t need.