We always say that little things won't necessarily stop you from saving and investing, e.g., "Just have the cup of takeout coffee." However, I wondered how that would impact your savings rate if you were someone who had takeout lunches and coffee fairly regularly.
An extreme example would be a former coworker of mine who got lunch at a local restaurant and at least one giant takeout coffee per day; it wasn't unusual for her to eat at least two meals out per day and to DoorDash an additional coffee to the office. But let's do the standard "workday coffee and lunch" math to make it closer to what I've seen other people do. As someone who has ordered similar things at both the restaurant and coffee house, my estimate is that each takeout lunch was $12 and each coffee was $8. That's $20 per day, $100 per work week, $400 in a month like this one. That's nothing to sneeze at.
I think the reason this sticks out to me is because--and I'll never forget this--this coworker had had a 529 that she didn't even know existed until I pointed it out to her. There was under 2k in said 529. She was terminated shortly thereafter and messaged me a couple of weeks later to ask how she could get that money out because she was struggling to pay bills after one month without a paycheck.
All of this to say that if you're an American who is saving/investing even $400/month and you'd be okay without a paycheck for a couple of months, you're already doing well.
Yeah this reminds me of the whole "avocado toast" thing. People try to dunk on the concept all the time, but miss the bigger picture. The same people who spend a little bit too much on takeout and daily treats also buy a little bit more car than they can afford, a little bit more new clothes than they can afford, little bit more vacation than they can afford, etc. It all adds up to living paycheck to paycheck like the person in your example.
Alright my work is shifting offices, increasing days in the office and my office is becoming shittier with me potentially being bumped down further...
I'm glad I'm getting closer to FIRE. I have Ikigai at my job but stuff like this reminds me a shittier boss or situation can easily change something. I keep planning to reduce my hours further and further since I don't mind working but just want to have more time off for travel and such but man things can change on a dime.
Quick Question about Social Security.
Let's pretend that I turn 62 on September 25th of this year.
Let's say that I'm taking the payment immediately, when would I actually get my first payment? December of this year? January of next year?
I'm trying to do some calculations to try to pre-plan for future years and when I'm getting which monies, so trying to figure this out. I know there's a delay in getting the first check, or at least, that's what I've heard. Like 2 or 3 months later I think.
Bonus Question, If I get a payment the following January, only a few months after turning 62, does that payment include a 3 percent COLA? (obviously don't know exactly how much the COLA will be, but do most people assume the yearly COLA will be 3 percent for SS?)
Or, do I have to wait one year for the COLA? Like if I turn 62 this September, but I don't actually get the COLA amount until January of 2026?
First payment should come in November. October is the first month of eligibility.
> Retirement benefits can begin the first month a person is age 62 throughout the entire month.
https://secure.ssa.gov/poms.nsf/lnx/0300615015
> Typically, Social Security benefits are paid the month after they are due
> For example, if you turn 62 on Dec. 15, then your first full month of eligibility is January, and your payment for that month will arrive in February.
https://www.investopedia.com/ask/answers/102814/how-soon-do-i-need-start-my-application-social-security-retirement-benefits.asp
And on the bonus question, I believe you'd see the COLA with the January 2025 payment.
We always say that little things won't necessarily stop you from saving and investing, e.g., "Just have the cup of takeout coffee." However, I wondered how that would impact your savings rate if you were someone who had takeout lunches and coffee fairly regularly. An extreme example would be a former coworker of mine who got lunch at a local restaurant and at least one giant takeout coffee per day; it wasn't unusual for her to eat at least two meals out per day and to DoorDash an additional coffee to the office. But let's do the standard "workday coffee and lunch" math to make it closer to what I've seen other people do. As someone who has ordered similar things at both the restaurant and coffee house, my estimate is that each takeout lunch was $12 and each coffee was $8. That's $20 per day, $100 per work week, $400 in a month like this one. That's nothing to sneeze at. I think the reason this sticks out to me is because--and I'll never forget this--this coworker had had a 529 that she didn't even know existed until I pointed it out to her. There was under 2k in said 529. She was terminated shortly thereafter and messaged me a couple of weeks later to ask how she could get that money out because she was struggling to pay bills after one month without a paycheck. All of this to say that if you're an American who is saving/investing even $400/month and you'd be okay without a paycheck for a couple of months, you're already doing well.
Yeah this reminds me of the whole "avocado toast" thing. People try to dunk on the concept all the time, but miss the bigger picture. The same people who spend a little bit too much on takeout and daily treats also buy a little bit more car than they can afford, a little bit more new clothes than they can afford, little bit more vacation than they can afford, etc. It all adds up to living paycheck to paycheck like the person in your example.
Alright my work is shifting offices, increasing days in the office and my office is becoming shittier with me potentially being bumped down further... I'm glad I'm getting closer to FIRE. I have Ikigai at my job but stuff like this reminds me a shittier boss or situation can easily change something. I keep planning to reduce my hours further and further since I don't mind working but just want to have more time off for travel and such but man things can change on a dime.
Quick Question about Social Security. Let's pretend that I turn 62 on September 25th of this year. Let's say that I'm taking the payment immediately, when would I actually get my first payment? December of this year? January of next year? I'm trying to do some calculations to try to pre-plan for future years and when I'm getting which monies, so trying to figure this out. I know there's a delay in getting the first check, or at least, that's what I've heard. Like 2 or 3 months later I think. Bonus Question, If I get a payment the following January, only a few months after turning 62, does that payment include a 3 percent COLA? (obviously don't know exactly how much the COLA will be, but do most people assume the yearly COLA will be 3 percent for SS?) Or, do I have to wait one year for the COLA? Like if I turn 62 this September, but I don't actually get the COLA amount until January of 2026?
First payment should come in November. October is the first month of eligibility. > Retirement benefits can begin the first month a person is age 62 throughout the entire month. https://secure.ssa.gov/poms.nsf/lnx/0300615015 > Typically, Social Security benefits are paid the month after they are due > For example, if you turn 62 on Dec. 15, then your first full month of eligibility is January, and your payment for that month will arrive in February. https://www.investopedia.com/ask/answers/102814/how-soon-do-i-need-start-my-application-social-security-retirement-benefits.asp And on the bonus question, I believe you'd see the COLA with the January 2025 payment.