Early Retirement – What does it mean to you?

I think many people fall into two groups when they think of an “early retirement lifestyle”.

One group thinks that since you’re not going to save for the same amount of time as everyone else (30-40+ years), you’re likely going to retire with very little. If you retire with very little, you’re going to live a very meager existence so you don’t burn through all of your savings quickly.

The other group may think it’s possible to save enough to have a nice retirement in a shorter time period, but that means you’re going to have to live an incredibly frugal life now. Personally, I think living frugally is what allows you to have margin in your life for the things you want, even if that thing you may want is early retirement.

I don’t believe that saving for early retirement needs to be either of the extremes above. Life is short, and anything can happen between now and early retirement, so you need to be able to enjoy life now as well as in the future. An important balance needs to be struck so chaos doesn’t rule.

Many of the topics I’ve written about up to this point have been about how to save money on a variety of things such as internet, cell phones, and even a trip to Disney World. If you’ve followed any of the advice, you’ve hopefully got some extra financial margin in your life. If you haven’t decided what to do with it yet maybe now is the time to go on this journey with me.

Perhaps you’re in a place where you really can’t imagine working for the next 20, 30, or 40 years and you question whether you’ll have enough to actually retire in the end. If that’s the case, than exploring this topic may help you realize you can make plan and live it out for a better future.

There may be some of you who aren’t in either of those two categories, and if that’s the case, that’s okay too. Let me know in the comments below what kinds of questions or skepticism you have. I’ve read stories in the past of people “retiring” by the age of 30 and figured that their situation was different from mine and that’s why they were able to pull it off. I’m 33 now, so I’ve already passed the age that some of these people were able to retire by. It’s never too late to step on the gas pedal and accelerate full speed into the future that we want. No one is going to do it for us!

Photo by Tax Credits

Simple trick to pay down debt slightly faster

We’ve got one last debt to pay off… our mortgage. We’ve made pretty good progress, but I wish it were paid off yesterday. A while ago I came up with a plan to pay it off slightly faster than we were, but without messing up our budget or putting us in a crunch.

I ran by my wife the idea of increasing our mortgage $2/month every month. It doesn’t sound like much, but $2 is enough that over the remaining payments, it can start to add up. It’s also small enough, that we don’t really have to find something to cut out each month to make it work. We just slowly keep putting a tad bit more on there. One month it’s $2 extra, then $4, $6, $8 – you get the point.

Every month I put it into the amortization calculator (because I’m that guy) to figure out the type of impact that extra $2/month has. So far, it has dropped an extra payment off at the end of the mortgage almost ever time if we were to stop adding anything more and just keep going at the new amount forever.

It pretty much follows the rule that if you do a small change over a long period, it has the potential to make a big impact. In this case, the impact is on our mortgage.

You could use this technique with any debt payoff, building savings, or investing. Are there any techniques you’ve found to pay off your mortgage faster? Let me know in the comments below. I’d definitely be interested in hearing about them.

Photo by GotCredit

There Are Only So Many Pieces of the Pie

I’m sure we all hate paying taxes, but to me, income taxes bother me the most.

With property taxes, you can choose to live somewhere more modest to lower your tax burden. With sales taxes, you can choose to buy a cheaper option, or not to make a purchase at all.

While it may not sound exciting to live in a smaller place or not buy something, with an income tax the only way of lowering what you pay in taxes is to make less money, and to me, that seems worse.

Let’s look at our income as a pie divided into 100 pieces (or 100%). Right off the top, more than 6 pieces of pie goes to Social Security. More slices go to pay your state and federal income tax. You may also have a city or school district income tax taking some slices of the pie.

Those pieces of the pie are gone and you can’t get them back. So when a new income tax appears on the ballot or is proposed, even as small is at may seem, I look at it as a slice of pie that can’t be used to feed something else like retirement, college savings, or replacing a vehicle.

The bad thing is that even if the pie gets bigger (like you make more money), the number of slices doesn’t increase. You can’t get a slice back after it’s gone.

So, if you go out and make more money you’ll never get a full pie back. No matter how hard you try, all you’ll be able to do it increase the size of the pie that you’ve got left. As more pieces of the pie are taken away, the increase in the remaining pieces seems like less and less.

This is just my interpretation of income taxes and one way of viewing them. How do you view them? What comes to mind when a new income tax is proposed?

Photo by 401(K) 2013

New post schedule

I’ve been trying really hard to write a post on Planning to Save every Thursday for you.

However, I’ve begun to realize that by doing that, I’m actually ignoring my other blog, Man Seeking Purpose. I really feel like I have a lot to contribute to that blog and sometimes I feel like I’m running dry for things to write on this blog.

So, starting this week, I’m going to be switching back and forth between Man Seeking Purpose and Planning to Save every other week.

If you don’t like this plan, let me know in the comments below.

In the meantime, please consider subscribing to both blogs. It’s the best way to be notified when new posts come out, and I promise not to spam you! See you next week!

Photo by photosteve101

(Survey) What are you struggling with financially?


I want to keep the content on Planning to Save relevant to you the readers. In order to do that, I need your anonymous feedback.

What are you struggling with financially? What do you wish you knew more about? Now is your opportunity to make a direct impact on the topics covered on this blog. Please take a minute (and hopefully it doesn’t take longer than that), to fill out the two question survey.

If it doesn’t load up correctly, you can open the survey by clicking here.

Featured Image courtesy of Stuart Miles / FreeDigitalPhotos.net

IT’S HERE: Am I the Only One Who Hates My Job


After months of learning and writing, my eBook has finally arrived!

Who is this eBook for? It would be easy to say for everyone, but that’s not really true though. It is primarily focused on the struggle that many experience in their job and career. I’ve pulled from my own personal experiences as well as what I’ve learned from others. I’ve also provided information and resources that got me through some of the toughest work experiences I had.

Why talk about it here? Well, shameless promotion for one. Another reason is saving money is really only one side of the equation. The other side involves making money. I personally believe that you’ll be more successful in your career if you enjoy what you’re doing. While you can make a ton of money, the time you spend doing it seems like an empty vacuum if you hate it.

If any of that appeals to you, you feel like you’re in a job you hate, or you’re just interested in getting a peek into a portion of my life, you’re in luck. For a special introductory period, I’ve lowered the price of the eBook to $0.99 for one week. Check it out below!

Money saving tip of the week: For those who have Amazon Prime and a Kindle, you can download the eBook for free through the Amazon Lending Library!

Kids = Cash

Couch Kid

Sure, you already know that kids cost money to raise. Too much money sometimes. Have you ever considered turning the tables and raising some cash at your kids’ expense?

Check out the ideas below.

  • Tax Deductions – Kids are definitely a tax deduction and if you’re not taking the deduction already, you’re crazy! It doesn’t even put a dent in what you spend on them in a year.
  • Babysitting – When they’re old enough, you can have them babysit and make some money. They may not give it to you, but at least it’s money in their pocket that they shouldn’t be asking you for.
  • Rent them out – Neighbor’s lawn needs mowed? Friend’s weeds need pulled? Send your kid over and have them do it. Then you can make a back room deal with your friend for them to pay you directly. Just tell your kid they’re doing a service project.
  • Craigslist – If all else fails, sell them on Craigslist. Sure, I could have said Amazon or eBay, but I’m pretty sure they’ve got strict rules against that kind of thing. Craigslist is more of a free for all type of thing anyhow. You might get enough interest before your classified ad is reported. Remember, younger kids have the cuteness factor, but older kids can be put to work. Be sure to stress that in your post.

The most important thing to remember this April 1st is to be creative. Kids have creative ways of sucking our wallets dry, so you might as well be creative in how you fill it back up. Be sure to leave your creative ideas in the comments below.

Featured Image courtesy of Ambro / FreeDigitalPhotos.net

COMING SOON: Am I the Only One… Who Hates My Job?


Some of you may not realize that this site along with a sister site, Man Seeking Purpose, were created during a confusing and troubling time in my career. I felt like everything else in my life was going well, but what I wanted to be doing for my life’s work was a mystery.

After doing a lot of soul-searching, I discovered that I wasn’t the only one who felt the way I did.  Those I knew who didn’t feel fulfilled or were troubled with their jobs all seemed to have varying degrees of unhappiness and were unhappy in different ways. There was one common theme among them. It was the sense of loneliness and hopelessness. They felt like they didn’t know what to do with their lives or that things would never change and they just had to accept it.

I decided to compile the range of emotions I experienced in my different positions, including the most difficult moments, add in what I knew others have experienced and create an e-book. Not only did I want to express how I’ve felt through my career, but I wanted to write something that others could relate to and hopefully help them through a similar difficult time in their career.

Keep your eyes open in the coming months. There is some final editing to be done before it hits the electronic shelves!

Save tons on a hotel room


We recently came home from a week-long trip to Walt Disney World and while we like to have a great time and do things up as much as possible, we also like to stay within a reasonable budget so that we don’t mess up any other goals we may have.

This time when we decided to go, we gave some serious thought to flying so we wouldn’t have to take as many days off of work. However, when we started to price out the tickets, it was really hard to justify spending about $1100 versus the approximate $300 to $400 we spent last time on gas, hotels, and food.

In order to keep the trip down and back at a reasonable cost, we had to stay in hotels as cheaply as possible. I’m the type of person who would prefer to stay at a slightly nicer hotel, but I also don’t want to blow our entire vacation budget on a temporary place to sleep.

The answer is to use hotel discount guides. You can find these at welcome centers and rest stops on the highway. They are free and are usually sitting outside in newspaper stands. The guides are arranged by highway and exits in that state so you can find the discounts for all the hotels at one exit in one place.

The discounts are really good and are lower than what you would get with a AAA card. As an example, we stayed at a Comfort Suites on the way down. I just checked their website and if we were to book it through there, we would have paid about $110 a night (AAA rate is $99) with taxes and everything. With the discount guide, we paid a total of $66.

There are usually some stipulations with the discounts, but they aren’t usually deal-breakers. Some examples are that the discount can only be used for a one night stay or that it only applies to certain room types or for a certain number of people. They may let the last one slide though if you ask nicely.

You can use the discount guides for more than just a road trip. Maybe you can impress a family member by paying for their hotel stay overnight as they’re visiting. (They don’t need to know how much you spend.)

Potential Savings: You can probably expect to save 30-40% off of the normal rate.

Let me know when you might use hotel discount guides to save money on a hotel stay in the comments below. If you’ve got any creative ways to save money on vacation leave those below as well.

Featured Image courtesy of sixninepixels / FreeDigitalPhotos.net

Is getting a tax refund a good thing?

Tax refund

We established in an earlier post that a lot of people will be getting a tax refund and it will average around $2800. That’s quite a big chunk of change. But is getting a tax refund a good thing? A lot of people think that if they’re getting a refund that it means they did something right or maybe they are somehow putting it to the government by getting money back. Unfortunately, that’s not really the case.

The money you get back in a refund is YOUR money! It means that throughout the year you’ve paid too much to the government. They’ve been nice enough to hold onto it for you all year and not give you any interest on it so that you can file a bunch of paperwork and get it back. In fact, since the government tends to spend more than they collect, the money they’re giving you back was probably borrowed from China. How’s that for scary?

Why wouldn’t you want to get a tax refund? Like I said before, you’re not getting any interest on that money. Plus, if you’re someone who has a hard time making ends meet each month it could be because you’re paying too much of your money in taxes only to get it back next April. That’s money you could be using to help pay off debt, invest for retirement, or save for college or a new car.

So how do you go about eliminating your tax refund and bringing more of that money home? Follow the steps below.

  1. Look back at the previous year’s refund amount. Do you expect any major changes in your life that might affect your refund one way or another? For example, are you getting married, having a kid, buying a house, etc. If so, you may want to use discretion later on.
  2. Take the anticipated refund amount from the previous year and divide it by the number of paychecks. If you anticipate getting a $1000 refund and are paid biweekly, that comes out to be about $38.
  3. Talk to HR or payroll and adjust your W4 exemptions until your paycheck amount increases by the amount you calculated in step 2. If you want to play it safe you can adjust your exemptions so only half of the amount you calculated is back in your paycheck. One important thing to remember: The exemptions on your W4 do not have to match the number of people in your family. They only tell your payroll department how much to withhold for taxes. I know, blah blah blah.
  4. If you need help calculating the number of exemptions you can go to Paycheck City and enter in your information into the calculator until it’s close to your current paycheck. After that, you can adjust the exemptions and see the difference it will make to your paycheck.

If all of that sounds too difficult and you get a huge tax refund, try increasing your exemptions by just 1 or 2. You’ll likely still get a refund next year, but at least you’ll have reduced it a bit. Then you can increase your exemptions by 1 or 2 the next year until you get your refund down to almost nothing.

Remember, tax refunds aren’t necessarily a good thing. If you get a tax refund this year, celebrate it by spreading your refund out across the entire next year!

Hopefully you’ve found this post helpful. If so, please share it with others. Have any questions, comments, or suggestions? Please post them in the comments below.

Featured Image courtesy of basketman / FreeDigitalPhotos.net