How to Retire in Spite of Yourself

When I was a mere tadpole of 38, a call came to my desk summoning me to Human Resources. Adrenalin pounded as I showed up, expecting to be fired but the news was good -- crucial, in fact, because a counselor explained the 401K savings program and I went for it. At that point, I could hardly afford to live, much less save, but still signed up for automatic deductions from my pay. That was one of the pivotal decisions of my life. Were it not for the 401K program, I would still be working today.

Most of you have heard or read sound advice on the astronomical nest eggs necessary to retire, the proper planning, consulting an expert financial planner, etc., but a lot of people are like me. For most of my career, my financial house was not only in disorder but an outright mess. Still, I was able to retire thanks to the 401K and five other smart moves.

I Bought a Home

It wasn't easy and it's not fancy -- a three and a half room condo in a nice but not expensive area where I feel safe, have friends, am conveniently located to shopping, can walk almost everywhere, and public transportation abounds which is good because ...

I Don't Drive

In my town, public transportation is discounted or free for senior citizens. Senior shuttle service is provided at a nominal cost. A few times a year I take a cab or a neighbor gives me a ride but usually I can get wherever on my own. Not owning a car almost doubles the amount of money I can spend on myself.

I Got Organized

Before I retired, I got a home equity loan which paid off my mortgage and cleared off other debt. (Another smart move -- signing up for automatic bi-monthly repayments. Never being late for a payment has reduced the interest rate every year.) Sure, I have to finish repaying the loan but the interest is tax deductible, the payments are easily affordable, and I don't get calls from Collection Departments anymore.

I Bought a Computer

What would I do without my computer which is a vital link to the Internet and a gold mine of opportunities to either save money or earn more.

I Order Prescriptions by mail.

Thanks to ordering 90-day supplies of prescriptions from an insurance company's mail order service, I was able to save $240 a month on just one type of medication.

THE BOTTOM LINE:

Even though I didn't plan sufficiently ahead or do all the right things, today I don't have to worry about calls from Human Resources or report to a job at all. With a modicum of budgeting and a simple lifestyle, I am able to live well on the more than $2,000 a month I get for doing mostly what I want to do. There are ways I can augment that income if I want but I don't miss wearing high heels, coping with office politics, or riding crowded commuter trains and I'm grateful that I was finally able to retire, in spite of myself.