ING - Latte, New Shoes, or Early Retirement?

Inspired by an article I read in Kiplinger's about a couple that retired when they were 38. Did they strike it rich? Were they in extremely lucrative careers? Did they make a lot of money on their house? No, the wife in the story said it boiled down to this basic principle: "Every time I would look at a new pair of shoes or want a latte, I would think, 'Is this really important?' and no, it wasn't. This couple only saved $500,000 before retiring 16 years ago and manage to spend just $24,000 per year, travel the world, and enjoy life.

I just can't get this image out of my head. To put it in perspective, I've planned for my husband and I to sock away $25,000 per year to eventually save $10 million to protect us in retirement 40 years from now. Now the key here is planned (doesn't mean we always meet that goal, but we do get close). We are saving more money each year than this couple is spending! And before you think we're well off to be saving that much, think again. My husband is a teacher and I run a small publishing company, neither extremely lucrative, we just save first and try to figure out how to pay the bills after that.

With all that being said, we're still trying to save for our son's college, which in 16 years will probably cost $100,000 per year or something insane like that. We also try to put some away monthly for christmas and vacation. One of the easiest ways to do this is through ING's automatic saving plans. Because ING is an online only bank (don't worry they are based in the real world here in MN) they can offer higher interest rates. The other advantage is there are no ATM's, checks, or debit cards linked directly to your account. So when that urge to splurge hits, you'll cool your heels for 3 - 5 business days and hopefully make the right choice.

Ps. DISCLOSURE: Yes, as you can see by the banner right below, I am an affiliate of ING. However, I only promote services that I myself use and find 150% up to par in terms of use and customer service.

Click here to start saving with ING DIRECT!


Anonymous said…
Hi Kat,
I love this Post -- insightful and very thought-provoking. I also appreciate how you surface one of life's bigger Yin-Yang issues -- enjoy today versus save/plan/etc. for tomorrow. Here's a line I love to use when discussing this phenomenon, one I picked up in a group years ago: "If you live your life with one foot in the past and one foot in the future, the best you can hope for is to piss on the present."
Carpe diem,
Unknown said…
Thanks Bill. It is so hard to keep that balance. But I guess, it is worth it.

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