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Based on the feedback I have received on HD over the years mostly directed at my failure to budget or track expenses in detail using spreadsheets, my selection of some high expense investments and to not pay much attention at all to our investments, failure to use financial or retirement planning services, retaining life insurance in retirement, beginning Social Security at FRA while working, buying cars for cash, retiring at age 67(part of my income replacement strategy), paying for our children’s college and maintaining multiple bank accounts … I should be in a financial mess or at least required to a keep a close eye on our lifestyle spending.
Neither is the case, so either we are just lucky or all the worrying, detailed analysis and planning aren’t as important as they appear – at least in every case.
Yes, I have a good pension- the foundation of income in retirement. On the other hand, we were a one income family our entire marriage. I have never stopped saving and investing since my first job at age 18 and I did make foolish and risky financial moves like buying a vacation home with a 9-3/4 % mortgage the year before our oldest child started college.
Is it possible to just be a tad frugal, a prudent spender, a persistent (even if inefficient), investor, not follow conventional ideas on them all and still with success?
While I don’t recommend do as I do, it is possible. KEEP CALM and CARRY ON.
Just goes to show that spending less than you earn is numero Uno. Many arguments can be made about two, three and four. If you invest poorly, the school of hard knocks will gradually steer you in the right direction. It’s just a shame that I could not have found Vanguard in my twenties 🥴
We followed the Dick Quinn method (and didn’t even have to pay him any royalties!). My wife and I decided at the start of our earning lives to save 20% of our income each year in retirement accounts and live off the rest. No financial planning/planner, just hoped/trusted that would be enough. No spreadsheets or budgeting, just being disciplined in spending. Early on we thought we were spending too much but didn’t know where it was going, so we kept track of spending for a few months and discovered we were spending a lot more than we had realized on take-out food, so we cut back on that. Our self-employment income was somewhat irregular so we used a HELOC to smooth it out; somewhat risky but we trusted our ability to earn more $. During the pandemic our income dropped and we just didn’t have enough money to make the full 20% retirement contributions for 2 years, but our retirement accounts had done well to that point so it was ok. We’re planning to 80-90% retire at the end of this year at age 69. At that point I am planning to keep track of our spending for awhile, but for the opposite reason as before: to make sure we’re not spending/giving too little! I’ve witnessed that it can be hard to transition to spending more, especially when you’re drawing down your assets instead of building them (no pensions, only SS will be coming in at age 70).
I am a spreadsheet guy, and like to calculate various scenarios. However, knowing and learning about finances, being disciplined and most of all using a lot of Common Sense, can get you there. It is OK to do it your way, no budget needed. Congrats.
After reading through the comments and
argumentsdiscussions contained therein, I find it a bit strange that the subject contained in the title of this post is questioning the need for either a spreadsheet or planning, yet the main thread of the article is about not needing a budget.I agree – you don’t need a budget. However that has nothing to do with whether or not one should do planning or use a spreadsheet.
Once again, I find myself in strong agreement with the commenters who are calling you out on the points you’re trying to make because they’re based on outdated personal finance assumptions. Pensions are gone for most people. Spreadsheets are free and easy to use. People don’t retire at 65 and take a dirt nap at 70 or 75. Health and longevity greatly change the math on retirement planning. It must be done now.
Give it up, Dick – everyone’s got an opinion (including me). However it seems to me that posting on this blog should be about educating those who are still on their journey to retirement, not a nostalgic look in the rearview mirror about the good old days.