A major payoff to practising frugality

joyfulguyJune 20, 2009

is early retirement.

And, should one be the victim of downsizing on the part of his/her employer ...

... some financial cushion to allow some breathing space while looking for alternative employment.

Or, maybe, being able to choose early retirement ...

... or partial retirement, with some minor employment sought in order to partially fund that retirement, in case it was somewhat less than fully covered till the anticipated date of one's departure from this dimension of life.

The intention being, if one doesn't consider subsidizing one's offspring, or supporting some worthwhile charitable enterprises ...

... to spend one's last dollar on the last day of one's life (with burial provisions provided for, of course).

And ... the Income Tax people, of course: one wouldn't want to leave them crying in their beer, feeling deprived, now, would one?

ole joyful ... 25 years a personal financial advisor, now feeling sad that so few arrange for 3 - 6 months' income available as a financial cushion, in case of layoff, etc.

P.S. Actually ... there are two potential payoffs, here - the first being a cushion to tide one over till one might be able to find alternative employment, and the second being a fund available that might enable one to choose retirement (or partial such) earlier than one had anticipated.

It sure is pleasant to have some choices, some freedom of movement, some wiggle room.

Good wishes for making money your servant (a good one) rather than your (terrible) master.

If I can't manage to float financially if either two - or even one - paycheque(s) aren't available, without almost sweating blood, it seems to me that I have no financial freedom at all.

I appreciate the political and social freedom that I enjoy in this part of the world ... and the opportunity that most of us have had earlier, though less so in recent times, to arrange for a measure of financial freedom for ourselves, as well.

o j

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budster

It's all in the planning....early retirement means early planning even before you are at your peak earning potential. Start now.....it pays off in the long run. Budster

    Bookmark   June 21, 2009 at 6:37PM
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ilene_in_neok

I retired at 61, a year ago last March. I'm here to say retirement is WONDERFUL! A lot of people that I have worked with in the past are older than me and still working. They say they cannot afford to retire. I feel really sad for them and I'd love to ask them why but I haven't the nerve. Can they truly not afford to retire because they have debts, or is it that they are unwilling to lower their lifestyle standards, stop taking expensive vacations, blowing money on expensive clothes, cars and entertainment? This is just me, but I'd so much rather have the freedom that retirement affords than to have all the trappings of wealth and prestige. --Ilene

    Bookmark   June 23, 2009 at 4:06PM
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stargazzer

I'm living my major payoff and loving it.

    Bookmark   June 24, 2009 at 10:04AM
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