Riot Earp's Journal

[Riot Earp]

Time does not permit me to detail the countless idiotic financial and lifestyle decisions that I have made over the years. Suffice it to say that "ERE" for me is little more than a pipe dream. If I drop the two E's in "ERE," I am left with the middle 'R,' and this is probably the best I can hope for at this point. If I can retire at all, and feed and clothe and shelter myself until I die, I will be more than content.

I didn't "wake up" until December of 2013. At that point, I started making some fairly radical changes. But I am very far behind ...

I am 54 years old.

I am a contrarian investor. I have two investment accounts. They are invested in undervalued hard assets. I've lived through three stock market collapses and won't be caught in the next one. Real estate does not interest me at this time.

Bucket "A" (Retirement): $86,400 USD
Bucket "B" (Emergency): $4480 USD

I have $3719.62 USD worth of credit card debt.

I lease a car and pay $146.70 USD, monthly, for it.

I pay $615.00 USD, monthly, for rent.

My goals for 2016 are:
1. Pay off the lone credit card while simultaneously increasing both investment accounts on a monthly basis.
2. Start a third account, perhaps in a different asset class.
3. Reduce food expenses. This has been a pretty major leak in my budget. "Beware of little expenses. A small leak will sink a great ship." ―Benjamin Franklin
4. Live on a fixed amount of cash each week, instead of swiping the debit card, and try to save a few dollars each day. Whatever I save during the week goes toward paying off the debt.
5. Develop a taste for lentil soup.
6. Wait at least a week after my 30-day smartphone plan expires, before renewing it. This will save me some decent money over time. I am single and can live without a phone for a week or so.
7. Reduce electricity costs in my apartment. Turn on my air conditioner's power saver mode during the summer.
8. Reduce unnecessary travel; conserve fuel.

I lived on roughly 60% of my income in 2014 and 2015. I saved/invested 30% and gave 10% away. Once the credit card is paid off, I plan to increase my savings rate to 35-40%.

Well, that's it in a nutshell. I am trying to remain positive and not wallow in regret. I can't change my past mistakes ― my wasteful, hyper-consumption lifestyle choices ― but I can focus on my progress, maintain some self-discipline, and (perhaps) achieve some form of retirement that does not involve a camper van and Ramen noodles.

I hope to post monthly updates.

Regards,
Earp

[IlliniDave]

So it sounds like you started to get things turned around when you were about 51-52ish. For me the big aha moment came in December of 2011, age 47.5, although it was some time before I found ERE, and I did begin righting the ship in 2009 once all the fallout from my divorce was behind me.

You are right to put the past behind you, it no longer exists except as some electro-chemical arrangement in your brain. All we can do is do our best from where we stand right now.

As another late starter I can say that I got my biggest boost from attacking the lifestyle expenses and driving them down as much as I'm comfortable with and putting the rest into the war chest (just simple stock and bond investing for me). The nice thing was the simpler and less cluttered my life became, the more happy/content I became. I've still got a ways to go--clutter removal is a permanent item on my to-do list.

[tommytebco]

"When I knew better, I did better"
Don't beat yourself up for the past. Onward and upward. You have a great start!!

[George the original one]

> I lease a car and pay $146.70 USD, monthly, for it.

As car leases go, that is inexpensive and you're probably paying 70% of that amount again for vehicle insurance. How do you plan on dealing with it when the lease expires?

[Chad]

I lived on roughly 60% of my income in 2014 and 2015. I saved/invested 30% and gave 10% away. Once the credit card is paid off, I plan to increase my savings rate to 35-40%.

First, as others have said, the past is the past. Don't beat yourself up too much.

Secondly, stop the 10% to charity. At this point, you need to be able to take care of yourself first and right now you can't. Better to save the money for yourself and not have to rely on someone else's charity in the future. If you do it right, you can probably go back to giving some money away at some point. I know this sounds harsh, but you don't have any room for error at this point. You do not have another 20 years of work to make up for them.

[Forskaren]

One way is to stop giving to charity now, but instead write about donation in your will.

[Gilberto de Piento]

Wait at least a week after my 30-day smartphone plan expires, before renewing it. This will save me some decent money over time. I am single and can live without a phone for a week or so.

You might be able to save money by switching plans. I like republic a lot and google fi sounds like it might be good.

[Dragline]

Good goals. Yes, regret is kind of useless as it lures us back into the foolish consistencies of our past lives.

[singvestor]

What type of investments did you choose? A contrarian strategy can be quite risky with such a short time horizon to retirement. You also write that you invested in undervalued hard assets. What are these and why do you think they are undervalued?

[Pucheou]

Buzzing around in a camper van sounds like a good way to retire to me!

Just wanted to drop by as we've started journals on the same day. All the best with your journey to FI/retirement. I personally was sleep-walking through life on a financial level until around 2 years ago, so just being aware of concepts like ERE is half the battle won, I think.

I'm not best placed to give advice, but it's good you've identified paying off the credit card as the nº1 priority. You could also add a bit of ground cumin to make the lentil soup more palatable!

[Did]

You write well. Good luck, welcome, and I will follow your progress with interest.

Ps camper vans rock

[Hankaroundtheworld]

It is never too late to change and follow a better route. I like @IlliniDave reaction, by changing yourself, you create a positive feeling, and that has a positive feedback loop to take on even more steps in the right direction. De-cluttering and de-consumerism is also part of a trend worldwide as we are reaching the end of the current wasteful system that humans created, we all need to change, so you are not alone keep on the good spirit

[El Duderino]

you're on the right path now, looking forward to reading those monthly updates to hear about your progress on your 2016 goals.

Another big fan of camper vans and ramen noodles. Bombay Bay Boy Pot Noodles are just soooo good.

[Ydobon]

you're on the right path now, looking forward to reading those monthly updates to hear about your progress on your 2016 goals.

Another big fan of camper vans and ramen noodles. Bombay Bay Boy Pot Noodles are just soooo good.

You always have my utmost respect, but Pot Noodles are the work of the devil!

[El Duderino]

You always have my utmost respect, but Pot Noodles are the work of the devil!

I know, there's probably no nutritional value in them whatsoever, but I will miss them when I leave England.

[inchicago]

Don't be so hard on yourself RiotEarp. I felt like that too late last year/early this year, but at least I'm DOING something NOW, just like you are. Last week, one of my co-workers who is almost 60 told me that she had drained her retirement account a few years ago to send her kid to college. Now, why he can't pay for his own college is a mystery to me, but anyway, she's almost 60, relies on her income only, has a mortgage of $150k, some credit card debt, and has been on the chopping block at work before. So, next time you think you're in a bad way, just remember that there are a lot of people like my co-worker who will never retire on their own free will, because they can't. One day the company will shut the door and where will they be? Unlike her, you have a real chance.

[GandK]

+1 to inchicago. With the exception of Zalo, I think everyone here has wasted one or more decades of their adult life. So you fit right in. All you need is awareness, better goals, and some gumption, and it sounds like you have all three.

Welcome!

[Riot Earp]

> I lease a car and pay $146.70 USD, monthly, for it.

As car leases go, that is inexpensive and you're probably paying 70% of that amount again for vehicle insurance. How do you plan on dealing with it when the lease expires?

Hi. I plan to buy a used car with cash. This is my last leased vehicle. I have a little over two years to save for it.

[Riot Earp]

I lived on roughly 60% of my income in 2014 and 2015. I saved/invested 30% and gave 10% away. Once the credit card is paid off, I plan to increase my savings rate to 35-40%.

First, as others have said, the past is the past. Don't beat yourself up too much.

Secondly, stop the 10% to charity. At this point, you need to be able to take care of yourself first and right now you can't. Better to save the money for yourself and not have to rely on someone else's charity in the future. If you do it right, you can probably go back to giving some money away at some point. I know this sounds harsh, but you don't have any room for error at this point. You do not have another 20 years of work to make up for them.

When I wasn't giving 10% (i.e. tithing), I had many crappy jobs, and some of my possessions were breaking prematurely (expensive eye glasses, engine parts, numerous flat tires, etc.) Less than two months after starting to tithe to a ministry, I got a very unexpected raise at my job, and my hourly wage has been increasing ever since. And things aren't breaking anymore, and no flat tires in several years.

[Riot Earp]

Wait at least a week after my 30-day smartphone plan expires, before renewing it. This will save me some decent money over time. I am single and can live without a phone for a week or so.

You might be able to save money by switching plans. I like republic a lot and google fi sounds like it might be good.

Thank you. I have looked at Republic and might go in that direction.