Today I want to talk about my parents. They are currently in Taipei, traveling all over Asia, enjoying the retired life.
My mom and I can spend hours talking about finances, budgets, retirement…all things related to money and wealth. I’ve always said that if I had inherited my mom’s exact brain, with my ambition, I could have ruled the world. She’s a genius when it comes to numbers, whereas I’ve had to work really hard to develop my analytical skills.
Before they went on vacation, we were talking about money as we usually do. And I was bemoaning the rat race of living in San Francisco. I will save that post for another day. I waxed on about how getting ahead in life was all about the big wins: significant raises, large bonuses, side businesses to provide additional income, and real estate investments.
She laughed and shook her head. She completely disagreed. She listed examples of people who have great jobs and appear wealthy, yet are nowhere near retirement. My parents, in contrast, are squarely middle class. My dad was in the navy, worked for the post office, and retired a while ago. My mom is an accountant who is now retired at age 66. She could have retired sooner, but liked her job so she kept at it. Another thing about my mom is that she could have climbed the corporate ladder, but refused. Even though she was a working mom, family came first. She didn’t want the burden of long hours or the stress of managing people and instead was always home at a reasonable hour to be with me and my sister.
Considering my parents’ poor immigrant background, their massive savings as they enjoy retirement together is extremely impressive. So how did they do it? If you ask my mom, she says it’s simple. They rarely ate out. Both my parents packed their lunch for work every day. I don’t think they’ve ever set foot inside a Starbucks. They never paid full price for anything. They’re not flashy people so they weren’t spending money on stupid stuff like fancy clothes or cars. They scrimped so that we could go on vacation, get braces, have piano lessons, and go to private Catholic school from first grade through senior year of high school. And even though they never made a ton of money, they consistently give to a handful of charities.
As I see my parents tagged in Facebook photos, tracking them from Tokyo to Taipei, then on to Hong Kong, Vietnam, and Singapore, I am filled with pride at how deserving they are of these memories and experiences. But also I wanted to point out that anyone can do it. You don’t have to be an entrepreneur or someone with a high-paying job or win the lottery to retire and enjoy your twilight years. My parents did it. Dean and I are determined to do it too. And of course, we’d love for all of you to join us. Let’s cruise around the world together!
Destination? Retirement.
Stefanie @ The Broke and Beautiful Life
Love this. It’s great to see the payoff of those years of simplicity.
I think the other common misconception is this idea that not burning through money in your young years is some kind of huge sacrifice. The fact is, life can be plenty rich without all the unnecessary spending.
Catherine
stefanie, so true. if we focus on the basics, we can truly live rich lives. honestly, i’d sell my engagement ring and rolex in a heart beat, if it weren’t for the fact that they were given to me. for me, it’s all about memories and experiences. i’d trade what i could if it meant i could travel with family and friends.
Janine Huldie
My mom was very similar to your mom and ended up staying home instead of working full time on Wall Street after she had me. She scrimped and saved, too and thankfully now she and my dad are also pretty comfortably retired. So, I can only hope and pray someday to have a similar when I get there.
Catherine
janine, that is an awesome story. our parents sacrifice so much so that we can have everything. i’m glad to hear that they’re comfortably retired as well. they deserve it! we will follow in their footsteps. i have faith!
cece @Pink Sunshine
Uggh! I wish I were there yesterday but I understand I have to put my time in. I feel the same about my parents. My mom retired from the post office this year. They are in Costa Rica right now. I feel so happy for them that they get to enjoy this time together and hope my day comes to do the same. Also, isn’t it nice that you aren’t going to have to worry about your parents? I like knowing that they are financially secure.
Catherine
yes i’m so glad our parents are financially secure, cece. they deserve it. i also tell them not to save anything for me. i don’t want an inheritance. it’s their money. they earned it. they deserve to spend every last penny. also, i think we can all retire earlier if we just left the united states and lived as expats abroad. i am researching that!
Patrick Weeman
Going to sound weird, but I am like your parents.
I have had the same middle-class job for almost two decades and I haven’t cared about getting ahead, making money, etc. I have been able to buy a house and have started putting my kids through college.
I have saved for retirement but I have been lucky because I have a state retirement which here in California is pretty good. People think that I have little or no ambition because my goal is not always trying to reach the brass ring but be happy. I have a saying that is “Don’t Mess With Happy.”
I can “retire” at 55 with about 70% of my salary and then I can go sub in a school district. Teaching credentials help that one. Work x amount of days to supplement my income and pursue my interests with the rest of time. I learned a long time ago from a man who worked at a menial job (even though he was flush with cash) starting at age 70 until he was 80 that it is good to have a structure and interact with people on a regular basis.
And I can still cruise.
Catherine
yes! don’t ever mess with happy patrick! patrick, retiring at 55. you’re my hero! i would certainly ‘retire’ early even if i had to do something on the side, as long as i loved doing that. i can totally work in a bookstore or be a cash register at trader joe’s. having a reason to get up in the morning and interacting with people would make my day 🙂
Dana
It’s no surprise that your mom has such a good financial head on her shoulders – I knew you got it from somewhere! While our standard of living has improved over the years, it hasn’t increased at the same rate of my husband’s salary. We want to enjoy retirement, so we’re living less-than-large now. Eye on the prize, and retirement is the prize!
Catherine
thanks dana. while i got my financial smarts from my mom, i am pretty sure she would have a heart attack if she knew my true spending habits. there are so many areas where we can cut back. for example, we eat out way too much. but i love trying out new restaurants!
AwesomelyOZ
See this is wonderful to see! My mother was not as fortunate and not good with numbers. You’re fortunate to have a mother who taught you that – I had to learn the hard way how to budget and am still working on that. What sort of savings plan would you recommend (not related to ones company/corporate) for saving just emergency funds (preferably one that is deducted automatically from ones pay)? I need to save better but i’m HORRIBLE at it – if I see it I want to spend it! Have a great one Catherine! -Iva
Catherine
hi iva, i need to do the same thing and have money deducted automatically. i don’t do that. as much as i’d like to mimic my mom, she would have a fit if she saw all the areas where i could be saving, but i don’t! as for my savings, i put it with ally.com where it earns i think 0.85%. it’s not a lot, but a lot better than most places. i think you can do a search on bankrate.com to find the best savings rates.
Yvonne Chase
My parents like your parents are sitting on a massive savings and enjoying their retirement years. They never lived off of credit cards and never carried over bills month to month.
I still remember the day my mother talked to my dad about getting an AMEX card. You would’ve thought she asked him to smoke crack. That’s how much my father hates debt. They did eventually get the card and only use it for lavish vacations.
Everything they own including their home and car is completely paid for. They are enjoying their “Golden Years!”
Catherine
crack is whack. yvonne, your story totally made me laugh about your mom asking your dad about an amex card. i use a 2% cash back credit card (citi has a new one) and put all my expenses on it. i’m also strict about paying it off every month. but believe me, there are so many areas where i can cut back more! aren’t we lucky to have had the parents we do?
Britt@MyOwnBalance
First, I love your outfit in the photo and Franco is adorable! He’s so big already!
Second, I just heard that San Fran is the most expensive city in the US, so I feel for you!
Third, I definitely think it is super important to save for retirement and your parents definitely have a good method. I think the key to their success is weeding out things you don’t want or need to spend money on. For example, some of our friends look down on the fact that we don’t have really expensive furniture in our apartment. But, Ikea has worked well for us and since we don’t currently own, we aren’t too worried about spending a few grand on a couch when we could save that money! It’s all about making choices!
Catherine
britt, i am going to write a post soon on how expensive it is to live in SF. i used to think there was no way i could live in NYC, but i do think SF has surpassed NYC! it’s insane. here’s a post that i really enjoyed from a nyc blogger: http://thebrokeandbeautifullife.com/new-york-city-is-as-expensive/
Tamara
Count me in! Of my kids’ six grandparents, it’s interesting to see six very different retirements. My father-in-law was never wealthy, but made tons of smart choices and now travels the world.
Of the six, only my dad was in a corporate job and for some reason, he seems in worse shape than the others!
Catherine
believe me, tamara, i can make better choices when it comes to my finances. for example, dean and i eat out way too much. it’s hard to resist, though, when there are all these great new restaurants popping up in san francisco. i just want to eat my way through the city 🙂 so not smart, though, because there’s the food plus wine plus the tip. i always feel so guilty after a meal!
Michelle @ A Dish of Daily Life
That’s great for your parents! They sound like they have done everything the right way. We haven’t done a good job in this regard. Both of us own our own businesses so we never had corporate jobs that matched anything for retirement. I have been consistent about saving all along, but something always seems to happen…we’ve had some major bills in the last couple of years that we couldn’t have forseen. I feel like I can’t get ahead. But I keep trying. One major mistake though that we made was not saving enough when we were younger. At least the retirement money hasn’t been touched.
Catherine
michelle, it’s definitely a process. my poor mom…she was counting down the days when she wouldn’t have to pay for my braces anymore. sadly, they didn’t come off until senior year of high school and that was only because i begged my orthodontist, pleading that i couldn’t have braces in my senior portrait! we can beat ourselves up because we feel we can’t get ahead, but it really is one day at a time! i am going to write a post soon on our everyday living expenses in SF that is going to make you so glad you don’t live here!
Charlotte
Awwww, I love this… And I love the fact that your parents are enjoying their retirement completely. My parents are a bit like that, too. My mom is German and met my dad in Paris… they didn’t have much but worked very hard to get where they are now. We always lived within our means and my parents instilled that belief in my brother and me. They believed that life could be lived fully in a house that needed repairs and clothes that were maybe a few seasons out of style.
To me, it’s so much more worth it to have a lifetime of memories than a closet full of things. I love that your parents are now able to enjoy this exciting adventure 🙂
Catherine
yes, charlotte! i could care less about material possessions anymore. really it’s all about experiences and memories. have you written a post about how your parents met? sounds like a great story!
Michelle
My mom said, “it’s not how much you make it’s how much you keep”. While we eat our too, I figure we don’t have too many other vices (no Starbucks, used cars, etc). Trying to find a balance to both enjoy and save. All new raises get immediately thrown into investments or savings. Recently had to coach a cousin on switching her 401k so it didn’t look like she was a 60 year old.
Catherine
michelle, your mom and my mom would totally get along! there are so many areas where we can cut. at least i stopped my sugar addiction. yay for no starbucks, used cars and such. we are totally on our way to living the good life 🙂