Budgeting your money to retire in 10 to 20 years
- Good choices verses bad choices, let’s do the math (add your own examples)
- Smoking ~ $5,000 each year! [5yrs = 25,000; 10 yrs = 50,000]
- Drinking one or two drinks ~ $500 each year [5yrs = $2,500; 10 yrs = $5,000]
- Getting drunk (mortal sin) ~ $5,000 each year min. [5yrs = $25,000; 10 yrs = $50,000]
- One night at the bar ~ $100, once a week = $5,200/yr [5yrs = $26,000; 10 yrs = $52,000]
- Eating out once a week ($20) ~ $1,000 each year [5yrs = $5,000; 10 yrs = $10,000]
- Eating out once a month ($40) ~ $500 each year [5yrs = $2,500; 10yrs = $5,000]
- Buying lunch/dinner each day ($3) = $1,000 each year [5yrs = 5,000; 10 yrs = 10,000]
- Starbucks coffee 5 days a week = $1750 each year [5yrs = $8,750; 10 yrs = $17,500]
- Traffic offenses/legal offenses = $100 to $10,000 each offense, or worse
- Buying stuff you could live without ~ the rest of your money [or worse if you use credit]!!!
- Owning a car (car, insurance, taxes each year, gas, repairs ~ $2,000/year minimum[5yrs = $10,000; 10 yrs = $20,000]
- Nicer car with warranty ~ $6,000 each year minimum [5yrs = $30,000; 10 yrs = $60,000]
- Cable TV ~ $1,200 each year [5yrs = $6,000; 10 yrs = $12,000]
- One Smartphone + plan + insurance ~ $1,000 each year [5yrs = 5,000; 10 yrs = 10,000]
- Internet ~ $700 each year Plus the cost of computers [5yrs = 3,500; 10 yrs = $7,000]
- Vacation ~ generally $1,000 to $5,000 each year [5 yrs = $5/25,000; 10 yrs = $10/50,000]
- Miscellaneous $5/ day (what do you spend) ~ $1,800/ year [5 yrs = $9,000; 10 yrs = $18 K)
- I made One Million dollars (in 15 years), where did it go???
- Stuff, stuff, stuff… a SLAVE to society – stop making everyone else rich!
- Personal examples – cars, coffee, credit cards, house upgrades, riding lawn mower
- Activity: Pick out the areas that you spend money on and calculate your savings/loss
- My 6 (internet, smartphone, 2 cars, eating out, 2 drinks, coffee) = $28,000/yr; $140,000/5yrs; $280,000 in just 10 years!!!
- Budget – Excel spreadsheet for month/year with 5 and 10 year projections/calculations
- Handout for group – Budget comparison
- Activity: One on One – fill out personal budget on premade Excel spreadsheet
- Manipulate the numbers to see savings/loss
Notes:
Idle hands are the devils handiwork – keep busy and GROW stronger as a person.
Take care of what you have – that saves money/makes money down the road.
Always look 5 and 10 years ahead.
A dollar saved is a dollar earned.
GOALS:
- Own your home (no house payment)
- Own at least one more property that makes rental income
- Health Insurance, transportation