Those of us Old Enough… perhaps, remember the Popeye of our youth!
Spinach… Yech! Give us Wimpy! At least back then! Today? Give me spinach!
“I will gladly pay you Tuesday for a hamburger today!”
Probably the most meaningful line I remember from those Saturday morning shows. It’s stuck with me, and for the life of me, I’m not sure why.
It seems Wimpy was always looking for something today, and willing to pay for it next Tuesday. I’m not sure why Tuesday, but his concept of satisfying the need today and paying for it down the road is probably how many of us learned to treat credit.
Dave Ramsey and others teach to wait until the money is in hand until you buy something – but all the commercials for Christmas shoppers seem to encourage spending on credit and paying for it next year.
The Problem?
The problem is real for many who overspend or do not take into account the true cost of an item. Spend too much, or buy it with unmanaged credit, then that item becomes a great future indebtedness that is not easily paid off.
We have seen this come true in many cases. Think about it. Overspend on an item, even when on sale, and you must factor in the cost of interest, penalties and diminished value. Only then do you get an accurate picture of the cost of the item, right? Yes!
I heard an advertisement yesterday to refinance your house, take out your equity (even all of it!), and pay off those higher-interest loans. If you do not change your habits, well, you’ll be back in the same boat again in a few years!
I bought my Dodge Ram 1-ton pickup new, August 2003. It was the most expensive vehicle I had purchased to date. But I knew the quality of the truck and the Cummins diesel. My intention was for this to be my last vehicle to purchase. 16 years later? It’s long paid off, and I’ve spent less than $2,500.00 in miscellaneous repairs. With over 330,000 miles, it can easily last 1 million miles. As long as I need a truck, this is my last one to buy!
Spiritual Thought
Why do we think credit and buying extravagantly are necessary? Are we not content with a more simple life? We have prime examples of those who have learned to live with less, and still accumulate more than enough money to last them into the future.
In the early days of the Exodus from Egypt, God taught his people to make extra food today for the Sabbath, because they were not allowed to work on the Sabbath. No work… No food…
Then he said to them,
“This is what the LORD has said:
‘Tomorrow is a Sabbath rest, a holy Sabbath to the LORD.
Bake what you will bake today, and boil what you will boil;
and lay up for yourselves all that remains, to be kept until morning.’ ”
(Exodus 16:23 NKJV)
This makes me think about holy times and preparing for those moments with extra labor right now. Pick on it as you may while you are young, but when you get to my years you think more about retirement. Will there be enough to survive on? What changes will I have to make in my lifestyle in order to afford a reduced income? Gasp! Will I have to give up Starbucks?
Solomon, of course…
Solomon writes about preparing now for slower times!
Go to the ant, you sluggard!
Consider her ways and be wise,
Which, having no captain, Overseer or ruler,
Provides her supplies in the summer,
And gathers her food in the harvest.
(Proverbs 6:6-8 NKJV)
Work hard while you are able. Save as much as you think you will need in later life. Invest it wisely. Once you are no longer able to generate the income you will have what you need to survive on.
Think It Through
One of my aunt’s told me something a few years ago that I cannot shake off.
“Don’t retire too soon. Work as long as you can. Your income will stay the same, but prices will always increase.”
When I bought my Pickup, diesel was about $1.65 per gallon. I’ve since paid around $5.00 per gallon. If I squeeze the pennies and shop the right place, I can now get it for around $3 per gallon. (2019 prices) During these past 16+ years I’ve put nearly 340,000 miles on my truck… I wonder what the total fuel cost was? Most of the time I got around 22mpg.
Let’s see. Math brain at work. That’s around 15,000 gallons of fuel. Let’s say the average fuel price was $3.50 per gallon… That’s nearly $56,000 in fuel costs!
Whoa! Let’s recheck that….
350,000 / 22mpg = 15,909 (and some change)
x 3.50 = 55,681.00 (and some change)…
How will that calculate when I retire? My driving habits will change little as most of these miles were spend doing important things! My importance will not change with retirement, at least for a few years!
Wait. I can convert to a hybrid or battery car! But wait! Electricity will probably skyrocket just when I think I’ve reached my safe years!
I better think this through some more!
On top of all of this, you have to think about your living costs (house, utilities, food, entertainment), medical costs (that’s a scary place to go), and incidentals like clothing, books, school, grandkids…
If my aunt was correct, my income will not change much, yet expenses will continue to go through the proverbial roof! I need a side gig!
These are stressful thoughts as you age and wonder if you are truly prepared to retire!
How About You?
How about you? When I began a job the year I got married, Human Resources told me my retirement year would be 2020… WAIT! That’s next year! Quick. Look over my shoulder. What have I done with my resources? Was I as wise as the ant? Who coached me to where I am today? Did I ask for advice? Who was I willing to listen to?
There is no time like the present to consider where you are!
- If you are young, you better start now… It’s never too late to make a start. You may have to work harder, longer, and scrimp even more to prepare for the future.
- Older? It’s never too late to jump on the bandwagon and work smarter so that you can be somewhat better prepared.
- In between? Please. Open your eyes. Time moves swiftly! Before you know it you will say, “Wait! Retirement?”
Regardless of who you are, and where you are in your walk of life, you must start thinking about next Tuesday. Now. It’ll get here faster than you can blink!