Starting Over At Any Age





Hi Folks

Plenty of folk have to start over again for many and varied reasons and the older they are the harder it is - some just give up and sink into the quicksands of poverty.

The younger we are when we have to start over, the easier it is - time is on our side if we are younger. However, starting over older means we have lots of life experience and can be ruthless about our needs and wants based on real life wisdom.


I just had to add another food photo - we eat very well at our house.


So let's not muck around - here are the best budgets (IMHO) for starting over by age. The percentages quoted are those of our NET income.


If you are starting over in your 20's - here's your budget:

 1. 20% Extra Debt Payments 
 2. 60% All living expenses and commitments 
 3. 10% Emergency Fund
 4. 10% Spend on whatever you want

Once all debt is paid, then revert to this version of the budget

 1. 20% Invest in low cost index ETF's
 2. 60% All living expenses and commitments 
 3. 10% Big spend items
 4. 10% Spend on whatever you want



If you are starting over in your 30's -  here's your budget:

 1. 30% Extra Debt Payments 
 2. 55% All living expenses and commitments 
 3. 7.5% Emergency Fund
 4. 7.5% Spend on whatever you want

Once all debt is paid, then revert to this version of the budget

 1. 30% Invest in low cost index ETF's
 2. 55% All living expenses and commitments 
 3. 7.5% Big spend items
 4. 7.5% Spend on whatever you want



If you are starting over in your 40's  - here's your budget:

 1. 40% Extra Debt Payments 
 2. 50% All living expenses and commitments 
 3. 5% Emergency Fund
 4. 5% Spend on whatever you want

Once all debt is paid, then revert to this version of the budget

 1. 40% Invest in low cost index ETF's
 2. 50% All living expenses and commitments 
 3. 5% Big spend items
 4. 5% Spend on whatever you want



If you are starting over in your 50's or older - here's your budget:

 1. 50% Extra Debt Payments 
 2. 40% All living expenses and commitments 
 3. 5% Emergency Fund
 4. 5% Spend on whatever you want

Once all debt is paid, then revert to this version of the budget

 1. 50% Invest in low cost index ETF's
 2. 40% All living expenses and commitments 
 3. 5% Big spend items
 4. 5% Spend on whatever you want




Roses - a simple delight


Some of us will look at this, snort, roll our eyes and say it is impossible.  It is not impossible.  In fact there are a whole community of folk world-wide living happily and meaningfully on budgets just like these - go find them and be encouraged.

The longer we stay in injury time-out mode, the longer and harder it will be to start over. Release the past without judgement, wish it well, smile, shoulders back and then take action. You're in good company.

Do it now - talk about it later.


Take care folks and stay nice.

Mr HM (Phil)

Comments

  1. Hi Phil,
    You are very helpful and encouraging to folks who need it. I shall look at your figures for 50 years + and see how they pan out.

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    Replies
    1. These figures assume you have no savings of any kind in either banks, stocks or retirement funds. If you have savings, then the figures can be relaxed accordingly.

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  2. After years of a mortgage, car loans, bank loans and overdraughs, and the dreaded credit card, you forgot to mention the joy of being debt free. Retired without any debt is a great feeling, so whilst it is hard through your working life, just think how bad it would be on pensions.

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    Replies
    1. I know right! Having no debt in retirement is so non-negotiable.

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  3. Great advice Phil, Thank you.

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  4. Ha, Well, my back-of-the-envelope figures tell me we have 75% of our income going to living expenses and commitments. This is with no debt, no smart phones, no new cars, no A/C. This also doesn’t include food or any extras. My Summer job helps tremendously, though, small that it is. Being over 50, actually, i’m Now over 60, there are not a lot of job opportunities with good pay. Especially when we live in the middle of a low income area. Of course, that’s why we moved here when my husband was let go and we lost 90% of our income. It’s now up to about 25% of what he used to make. But, like you said, we’ve put our shoulders back and got on with it. It wasn’t easy but we’re better people for having gone through it. But, there’s no way some of us can ‘save’ 50% when it’s just not there in the first place. (And, actually, we ‘save’ about 30% for taxes, insurance and car repairs. That’s included in our fixed expenses.)
    Debbie

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    Replies
    1. Hi Debbie, thanks for commenting so thoroughly. 75% is a good start - just calculating means you are ahead of most folk. Also, well done for having no debt. The focus right now is twofold for you.... 1. Increasing your income little by little (I have found doing jobs that no one else wants to do at your current employment is a good way to be noticed) 2. Continuing to find ways to reduce expenses little by little. Challenge yourself and do not be drawn into the culture of "can't". You have been savvy and resourceful enough to do so well with what you have thus far, which tells me you are resourceful enough to completely re-think some things and shift the reality little by little.

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  5. you may be interested in reading thesimpledollar.com. it contains lots of thrifty ideas.

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