Lot of people told me that paying mine off was not good. Well I paid it in full got repair and savings account for house. Vehicles paid for as well. I am 62 plan to retire at 67 or FRA. Congrats
Happy Birthday Erin!!! We are both 67 years old, the house is paid off, and we are blessed with a simple life! However, this is good advice about eating out. That extra cost really impacts your budget!
"Happy Birthday Erin!!! We are both 67 years old, " saw this and thought - no way! she barely looks her age and now this guy thinks she is 67years old?? then i read it again lol
Happy birthday Erin! As a military retiree, I only eat out when traveling to visit family. There's nothing that brings me more joy than to treat my children and grandchildren to a great meal. 😊
I actually guessed correctly, I have seen other articles saying to quit eating out after retirement. I completely agree with Erin's analysis of this issue. It is true that eating out is an expensive pleasure, but why did I save all those years and delay retirement if not to do the things I enjoy? As Erin points out, I found I reduced my eating out expenses after retirement simply because I have fewer opportunities to do so. If someone is in financial hardship they should certainly quit eating out. If you enjoy going to a restaurant a few times a month, you should keep doing so! Also, Happy Birthday! I hope you're going to a great restaurant to celebrate😀
It isn't the cost of eating out that scares me, it's the health reasons. When you get older, all your other numbers go up: cholesterol, lipids, blood sugar, blood pressure, waist line, etc. That tends to limit where you can go.
I woke up to the tragic drawbacks of our debt-based financial system during the last financial crash. Through discipline, determination and Julianne Iwersen Niemann my financial advisor, I was able to retire recently in my early '50s with a bit of land in the Williamson act on the California coast and an investment portfolio that can sustain my daily living. I try to spread the word and encourage many people I meet it is possible to achieve the goal of independence. Living below your means can be enormously rewarding!
@@alanwong8307 Exactly! I started “clean” during the pandemic. This eliminates 95% of restaurant food. I avoid breads, inflammatory oils, non-organic meat and vegetables. Only eat wild caught salmon and cage free pasture raised eggs at home. The oils with which restaurants cook with are low quality oils such as canola, peanut, soy, vegetable, and margarine. All highly inflammatory.
Exactly!! I said the same thing. You spend all those years budgeting and saving wisely only to deny yourself one of life's greatest pleasures (in my opinion) of eating out!? I don't think so. You can't definitely limit the amount of times to eat out monthly, but all those years of planning wisely had to be worth the sacrifice in the end.
Happy Bday, Erin. 🥳🥳🥳 No mortgage is the best way to go. Well, more specifically, no debt is the best way to go. One should not be carrying debt going into retirement (even though many people do).
Happy Birthday Erin! I agree that in most cases the mortgage should be paid off, and ours is. As far as eating out...our problem is that we often order 2 martinis (each) when eating out, in addition to sharing wine with the table if we're out with friends. If we could just "eat out" instead of also "drinking out" we'd save a lot of money.
As Ramit would say, don't play small. The bottom line is to know your numbers and what your rich life is. There is no one size fits all category to cut costs for retirement. Happy Birthday Erin!
I completely agree with Erin's analysis on this. While eating out has certainly gotten more expensive, so have groceries and car payments and pretty much everything else. But even when my wife and I were starting out in the late '70s the mortgage was always the big hitter in the monthly expenses. Usually followed by car payments. Food whether groceries or eating out once in a while (or some combination of both) was never anywhere near as much. Today my older son carries a mortgage payment around $2000 per month and a car payment of almost $1000 a month. Thinking cutting out a $50 trip to a restaurant will make a huge difference in his ability to save for someday just seems silly! I've never liked Suzy Orman or her advice. She reminds me of managers I worked for in my corporate career. I knew several who would pole vault over a $100 bill to grab that nickel on the other side, all the while bragging about their financial expertise! Oh and before I forget Happy Birthday Erin!
Funny about your Suzy Orman comments. I think she’s great for those just starting out, but the reason why people save and do the right things financially is so they can live their later years in relative comfort and not have to feel guilty if they decide to go out to eat or take a nice vacation.
I think it’s a balance. We eat out, but not super often. Yesterday we had breakfast at a local place we wanted to support, for instance. And it’s nice once in a while not to have to clean up the kitchen after you eat. In general though, I believe in living fairly frugally both so that I can take care of myself and retirement and so that I can do the things I really love like traveling. I’ll be retiring in about five years, and I’m waiting until my full retirement age because I enjoy my career and also enjoy the income. Being frugal let me to be completely debt-free. Until a year ago, that is, when I took out a refinance on my home to help get my son into a home of his own. And I’m deeply grateful that choices I’ve made allowed me to do that. It will be paid off in a couple of years, however, so I’ll be well out of debt again before retirement hits. Leaving a little below means absolutely the key.
A mortgage is more expensive than eating out every single day of every single month. Going to the grocery store can be quite expensive too. Live within your means is the best advice one can give.
That significantly depends on the mortgage and the eating out. To outdo a $2000 mortgage you'd only need to eat out for $70 a day across the month which isn't hard with the expensive delivery apps and how expensive restaurants have gotten. That doesnt even cover the fact that you're still paying property tax and home insurance even when your loan is paid off so your monthly cost for the house doesn't actually go to 0.
@@LearningFast I think the point is that food and housing are both large costs. Housing has way fewer options to reduce costs, other than trying to get the mortgage paid off. We track our budget pretty well. As a couple eating out real food(not junk food) averages over $50 per meal. Groceries run $250 per week. We budget $1500 per month for food. If we ate out 5 times per week, it would add $1000/month easily. Our mortgage is paid off. Taxes, insurance , and HOA is $1100 per month. A mortgage would add another $1-2k or more. Then there are cars, at minimum figure another $500/mo. Obviously paying off the mortgage is fantastic, but eating out does have a huge negative impact on your budget, with minimal returns. Putting your restaurant budget towards your mortgage is probably the best strategy!
Happy Birthday! My personal choice is paying off my mortgage. As a widow, that's nearly 2k a month hanging over my head and if i mess up, I'm homeless. Nope. But as someone who CAN cook but doesn't like to cook, i can totally agree that eating out, take out and delivery services are killing my budget.
Happy birthday Erin! 🎉 Although eating out can add up, I feel the two most important aspects of bieing able to retire stress-free is no debt and no mortgage.
Happy birthday Erin! I like your approach of tackling the bigger costs rather than obessing about expenses that may not really move the needle. Making your meals all the time can be a hassle and eating out is one of the few fun things in life but of course shouldn't be done all the time. If one can plan themselves financially, then eating out won't make you broke.
Happy Birthday Erin! I don’t mind a mortgage in retirement, especially if it is a low interest rate. Most houses are assets that appreciate and the opportunity cost of selling investments to pay off a mortgage can be worse. Cars in contrast have big depreciation and a big part of most budgets. I think the key is what you said about doing what you enjoy within your budget. That will be different for everyone.
Happy Birthday! Another approach to debt is right-sizing. Maybe a smaller home with a smaller (or no) mortgage. IMO the worst debt trap is automobiles, give me a reliable car that’s paid off.
I still drive a 2004 Subaru Forester and it's a great car that's supposed to be good for over 250,000 miles. Since I'm not even halfway to that number, it'll be my forever car.
Whether or not you pay off your mortgage should have a lot to do with your mortgage interest rate and your discretionary to non discretionary expense ratio. It makes little to no sense to pay off a 3% mortgage when the opportunity benefit of an 8% rate of return in stock investments is taken into account.
Exactly. Wife and I plan to retire in the next few years in our early 60's. We have a 3% fixed rate mortgage. I can't at all justify taking $300k to get rid of that debt when I can invest that $300k long term at a likely higher rate of return. Sure the rate for that $300k will be dragged down 3% compared to the rest of my portfolio, but I'll still have extra in my pocket from it... just a little less. No way would I pay this off. My 3% mortgage is a lucky gift.
Happy Birthday. I just discovered your channel and find it informative and enjoyable. Hate to be the hater but for me, not eating out so much was how I paid off my mortgage really young. Working hard, saving, living frugally and keeping an eye on the prize mean that now, at 65, I'm looking at retirement income somewhere between 50 and 100% MORE than I took during the working years. I'll credit plenty of luck with some of my success in business, a lot of hard working really smart people aren't so fortunate but still: sacrificing a lot early can make for a rosy future... and eating out all you want. Keep up the great videos!
Happy Birthday, Erin! I agree with you that focusing on the bigger expenses can have more impact, but I also see the value in cutting smaller expenses when possible can also have an impact. Thanks!
Happy birthday, Erin! A lot of it depends on your mortgage interest rate that you’re paying on your house. If your mortgage interest rate is very low such as for people who refinanced three or four years ago and got it below 3% then it may not be worthwhile to pay off your house. The money would pay off your house with could be used for investment to make 6-9% interest. With that kind of return, you’ll still be ahead.
I woke up to the tragic drawbacks of our debt-based financial system during the last financial crash. Through discipline, determination and Julianne Iwersen Niemann my financial advisor, I was able to retire recently in my early '50s with a bit of land in the Williamson act on the California coast and an investment portfolio that can sustain my daily living. I try to spread the word and encourage many people I meet it is possible to achieve the goal of independence. Living below your means can be enormously rewarding!
What if we have a decade long downturn in the economy? What if you become disabled, lose your job, have to care for your ill spouse, etc etc. That mortgage, is a financial boat anchor that you are dragging around the pond. Sure, keep a mortgage on a rental property, but your own home? No. The goal is to get rid of that thing in a reasonable time frame.
Happy Birthday, Erin! I was originally planning to retire when I paid off my mortgage, but my company downsized. After speaking with a financial advisor, I decided to retire early at the age of 58. I still have five years left on my mortgage, but I am happy with my decision.
Paying down a low interest rate mortgage early means you are investing less and lowering your retirement income substantially. The rate you are earning on your invesments should far outwiegh your mortgage interest.
You need to factor risk into the equation, though. You're guaranteed to save X% on your mortgage, but most investments that will exceed that come with commensurate risk. If you can wait out a bad market, then maybe it's less of a concern, but if you need liquidity, paying off the mortgage is the sure bet.
@@DavidVCastro I would imagine most people would have time on there side in this case, when planning for a mortgage (which is when you should be thinking about this) you are talking about decades. Wth an avg return of say 10% in the S&P you may better off taking the longer rate term. Today that is a little harder of a decision to make with day a 7% mortgaage rate, but if rates get down under 5 it is a no brainer and for those of us that were able to get sub 3% loans there is absolutely no reason to pay those off early as inflation alone pays that rate off.
@@gavinxm If were talking only about those just about to go into retirement, yes. Folks who are already retired for awhile may have a different equation for risk/reward. 🙂
Happy Birthday Erin! Love the content on the channel! Having a plan for the weekly meals ahead of time helps prevent the last-minute dining out. It makes the event of going out to eat more special when it’s more intentional!
Happy birthday! It’s good to see someone who isn’t ashamed of getting older. I agree with you on focusing the bigger expenses before retirement, and there’s probably a Suze Orman video somewhere that says the same. These articles are just entertainment.
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to michelle sule
Happy Birthday! I know that eating out is a fairly substantial portion of my budget. I count it as entertainment (not food), but I don't have any intention of slowing down in retirement. I want to enjoy my retirement, and that means eating out! Trust me, I'm budgeting accordingly.
Happy birthday Erin! Love your contents. The incompetence and corruption that runs through this administration are getting more ridiculous. I feel for people with disabilities not getting the help they deserve. Thank you June Renae Matthysse, imagine investing $1.5k and receiving $11.8k in 20 days
That woman transformed my entire life for the better. Among the folks I've met, June appears to be the most trustworthy. I'm surprised you know her as well
Hi Erin, Happy Birthday! Your videos started showing up on my recommended page a few months ago and I've been watching and enjoying them since. I haven't skipped a single one and even watch some of the older ones. When I saw this topic, I nearly skipped it, since I just knew it was about not having a mortgage in retirement. I was surprised to see the subject was food related. Who knew. I don't find spending this miniscule amount on food a negative thing in retirement, if you can afford it, because most older people (me included) really enjoy eating out and trying new things. The mortgage on the other hand would be an expense that would really add up and cause issues as your income is more limited. I hope you had a great birthday and keep up the very interesting and informative videos.
Happy B-Day!! I did think it was eating out. I’m in outside sales and have always fought the urge to have lunch on the road. Thanks for your knowledge and enthusiasm.
Happy Birthday 🍰 I do agree on the going out to eat, my wife and I eat out a few time a week to a sit down. We make this a our treat time, but eat smart getting water, going at lunch for deals, and cut the extras that inflate the bill we speak about this often, this alone seems to make it affordable and allows us to enjoy each other time and catch up. We have not paid off our house but - very much in range to pay off it is going to be such a big expense done with ! We love these type of quality of live videos the most.
Happy Birthday Erin!! This is a tricky question. I'm 66 and have always lived within my means. It's worked! I told my kids "Don't get into debt w/ credit cards or expensive car payments. Get the interest headed YOUR direction, not the other way around." (Start young, people). We have a 3% mortgage w/ not much left on it which has freed up $$ to invest alot for retirement. We're not going to pay it off....yet But if we wanted to, we could simply write a check. Love your videos, Erin! You're very wise.... :)
I teach high school Financial Literacy & enjoy your content which I can infuse into my lessons. I’m also approaching retirement age and find your content applicable to my stage of life! Thank you !
Happy birthday. Your channel is so informative and I’m a senior exec for a large bank and still get great value from your financial advice! Thank you so much!
Happy birthday, Erin! I also thought it would be the mortgage. I agree with you, too, when you stated that eliminating eating out can suck the fun out of life! Thanks for all of your insight! Enjoy your channel!
BTW, Happy (belated) returns!! Hope your year ahead works out well! Next, I do agree with BOTH categories needing to be pared down ASAP.. but about the only way for most people to do this would be to take all the "restaurant money".. and apply it to their principal on their mortgage! Yes, it is important to note that many of us retirees eat out - more for social reasons - or a desire to just "get out" at all. As you say.. at least part of the problem. There is a another VERY expensive (but variable) "money drain" category: monetary "help" to kids, grandkids, and even charitable causes that the budget really can't afford.. yet we do it anyway.. you might want to address that one next video - even if you already have done it before. Back to the mortgage.. I personally have experienced this, as I have been mortgage free since age 51.. and wow, talk about freedom!! YES, when nearly half of your budget goes to supporting a dwelling, find a way to get rid of that. I would agree heartily that "downsizing" from that huge house to a smaller dwelling after selling (we are in the process of that).. is a great way to save more money - typically you will have lower taxes, insurance premiums, lower utility costs, but above all, less to maintain. A 4000 sf house.. compared to a 1800 sf house.. think about it.. single story.. no more 24 ft. ladder work, haha..Thanks for the video!
Happy Birthday Erin! No debt should follow you into retirement and sticking to a budget before and after retirement will allow the freedom to prioritize what is important to you.
Happy Birthday Erin! I guessed mortgage also, but I understand cutting the dining out expense being on the list… not the first expense to cut first though. As always, thank you for great videos.
Happy Birthday! I agree with your points about cutting big expenses like mortgages and cars. Something else about vehicle loans to make things even worse.....new (and old) cars depreciate the moment they leave the dealership. So, if you take out a loan to pay for them, you are making principal and interest payments on something that is losing value over time. At least with a home purchase you have a chance to build equity with a (small) portion of that mortgage payment as well as (hopefully) experiencing home appreciation over time (depending on market trends, etc.). As you mention, depending on your specific financial situation in retirement, the faster you can eliminate your mortgage payment the faster you will be able to 'enjoy' that extra chunk of retirement funds.
Happy birthday!! I thought a mortgage or car payment would be the advice. But eating out makes total sense too. My wife and I eat out too often (which is my fault). But we often use the experience in the following two productive ways. First, we refine our home menu with things we experience and enjoy at restaurants. I love cooking and my wife loves crafting new cocktail recipes, so we analyze flavors and draw inspiration from our favorite meals and cocktails enjoyed when we dine out and try to recreate those things at home. Second, we enjoy trying to make cool infusions and garnishes we experience at restaurants as a hobby, then sharing these things with friends whilst hosting happy hours or parties at our house. For example, we recently learned how to make falernum (a liquor made from ginger, toasted almonds, lime juice, lime rinds, allspice, and cloves) and orgeat (almond liquor) to perfect a tiki drink recipe we tried at a local tiki bar. We also learned how to make rock candy sticks and brûléed citrus slices to use as cocktail garnishes. We learned how to grow and propagate tomato, onion, and pepper plants to grow and perfect our home salsa recipe, and how to make tortilla chips in the air frier, all to try to match our favorite flavors from our favorite places. So we enjoy dining out. But perhaps even more, we enjoy trying to replicate what restaurants make for us so we can share those flavors with friends.
Best wishes on your Birthday Erin! I am also retired and really enjoy your channel. I regularly share some of your favorite (my favorite) videos with my children in the hopes that they can take advantage of you inspirational and informative talks.
Happy Birthday Erin🎉! Wishing you a wonderful day! Yes I also thought it was a mortgage payment. I’m 57 and retired 3 years. My 2020 car is paid off and have a low mortgage payment. As you stated, i saved and invested long and hard over many years and now have a considerable nest egg so the mortgage is more then doable. Interestingly enough, i now cook more than ever and eat out much less then when i was working. Thank you for your very informative videos and all the work and research you put into them. They’ve helped me and many others. You’re the best 😃
Happy birthday! Definitely agree that a mortgage is the logical answer. I can understand Suze's answer, but it is I personally will be starting with eliminating the larger expenses.
Erin, happy birthday. I hope you had a great day. I retired at 57. Key for me was having the house paid off so that my monthly expenses would become very predictable. I know my run rate given real estate taxes, insurance, utilities, etc. and therefore know how best to manage it. An important thing for me is to be comfortable in my own home, which means that I will run the AC all summer to be about 68-70 degrees and 70-72 in the winter. I have been to many of my friends home and I either sweat in the summer of freeze in the winter. I personally don't want to save money like that. I also think that people need to better understand the cost of buying good ingredients and cooking at home versus how expensive it is to have a comparable dinner out. Good segment on your part. Stay well.
Happy birthday! Dining out for me is more of an occasional entertainment choice than meeting a food need. I'm definitely working to eliminate the mortgage before retirement.
I thought it was for sure going to be to cut out the mortgage! Love the vid Erin; always love seeing your videos show up on my feed! Also, happy birthday!
Happy Birthday- it's a great month to have a birthday in! I love listening to the information- you have a great way of sharing it, I like how to the point you are.
Happy birthday! Eliminating housing costs would give you so much flexibility in retirement; I want to have the ability to enjoy eating out as much as I desire…keep the content coming!
Clearly you don't know anything about Suze Orman or what she reccomends. She says to pay off a mortgage before retirement. The question is not do you pay off a mortgage before or after retirement. The question was should you cut back eating out in retirement.
Happy Non-Amazon-Eligible belated birthday, Erin! Such a strange recommendation by Orman, to stop eating out when you're in retirement. IDK if she just assumes everyone is out of debt going into retirement, or something else, but I totally agree with you that carrying debt into retirement (of any kind) is a risk and burden. Which I think is something that those that are considering retiring early don't seem to appreciate. We are in the category not listed in eating out frequency, those that eat out
Felt v hungry mid morning, what’s easy is get out and go for pizza, as I hovered over the fridge shelves the cauliflower looked at me, the lentils and rice in the shelves , and dozen eggs, and other things to sautee and cook, voila, my warm and delicious meals cooked in no time to eat, it was fun. Joy of cooking or walking is itself fulfilling. Happy Birthday, Erin🎉just listening to your advice, tips is quite helpful, reassuring , no need for Amazon card 😊. Best Wishes 🌹
Happy Belated Birthday! Hope it was a great one! Must have been pretty good - since you had no bloopers to share 😁. Was wondering where you were going with this one on expenses, but you (of course) hit the nail on the head. Live moderately so you can spend on experiences while also securing your future. I admit, I did take that a bit too much to the extreme for years - cutting too much on the experiences as well the big expenses. However you live and learn, and now I do have the funds and the mindset to focus the experiences (of course, still within reason). Hope you threw caution to the wind and did something great and memorable on your birthday!
Happy Birthday, Erin! I though the expense would be a mortgage. Suze Orman's comment "to live below your means but within your needs" (which is a Needs vs. Wants observation) caused me to realize something: Spending on a Need when you already have the Need covered is a Want, e.g., adding to an already excessive wardrobe is not a Need, it is a Want. Wants are not all bad, but must be aware that it is a Want and not a Need. Yes, I know that this information is not really germane to this video, but it's a small Golden Nugget of Truth that I just realized, and I just had to share it.
Happy Birthday Erin!! Yeah! I would have thought “Mortgage” as well. I guess cutting out or reducing dining out makes sense as well… but there’s eating out fancy style and there is eating out reasonably!
Happy birthday! I'm honestly not surprised that Suze would suggest cutting out eating out considering her stance on daily coffee (as you referenced) But I like the Ramit Sethi's approach of allowing yourself those things that make your life worth living. If where you want to spend your money is to have your dinner prepared by someone else and not have to cook for yourself , then that's your "luxury" item that makes your retirement and life more fulfilling. But if cooking is your joy, then it only makes sense to not eat out. I also agree to tackle those bigger expenses, like housing, to free up money to live life with a little more satisfaction and happiness.
Happy Birthday! The title "The ONE Expense You Must Cut Before Retirement" made me think I really should listen to this. I liked your delivery and honesty and decided to subscribe. My gut tells me I can learn a lot from you. I need to because I'm not as prepared as I need to be. I look forward to learning!
By the way, we eat at home 95% of the time though we do plan on going out for my birthday (2 days after yours). My goal is to pay off my mortgage early even though our interest rate is low. It just seems to be the prudent thing to do. I'll be curious what you recommend.
With a robust nest, and a low mortgage rate, I think it really comes down to personal preference. Me, I’m pretty debt diverse, so I am very much looking forward to paying off my mortgage early and living debt-free. I think that’s an emotional win. I have a mortgage that sits at an interest rate of 3.2%. You can absolutely make the argument that you can come out way ahead otherwise investing money in the market. So I think it comes down to personal preference. Also, thanks for subscribing, and welcome to the channel! 😊
I guessed this one. So many life events and memories involve gathering to share a meal. The social and emotional impact of eliminating this in retirement should not be minimized. The cost of hosting at home would be more than the occasional restaurant meal. Definitely agree mortgage payoff is a higher priority for me. Happy Birthday!🎉
Happy Birthday Erin! I just started following you (literally today on your birthday!) after watching "What Happens To Social Security When You Retire at 55". Great advice and wonderful tips. Thank you for sharing your financial knowledge and helping others who in all stages of their financial work lives. I hope you enjoy your special day!
Happy Birthday! As for what/how to prioritize expenses before (and after) retirement, it rather depends FIRST on how comfortably one is SAVING. If you're living paycheck-to-paycheck, there are bigger priorities to deal with than not eating out, for sure. But if other things are in control, I totally agree if one is able to, eating out is both a mini vacation, a social fulfillment, and an enjoyment. I've lived this way, since long ago, and yet always lived a bit "beneath my means" all along, and even into my retirement. I'm enjoying my restaurant visits with friends and family! :) Thanks for all your thoughts and recommendations!
I’m 60 and paid off my mortgage about 8 years ago. Best move I ever made. I carry no debt and that gives me a sense of control and security. Love it.
Lot of people told me that paying mine off was not good. Well I paid it in full got repair and savings account for house. Vehicles paid for as well. I am 62 plan to retire at 67 or FRA. Congrats
I did the same thing and it was great until the insurance companies bailed out of California and my insurance tripled. 😠
Happy Birthday! Eating out is great, I went my whole life not dining out. Now I spoil myself close to retirement by eating out, thanks.
Happy Birthday Erin!!!
We are both 67 years old, the house is paid off, and we are blessed with a simple life! However, this is good advice about eating out. That extra cost really impacts your budget!
"Happy Birthday Erin!!!
We are both 67 years old, "
saw this and thought - no way! she barely looks her age and now this guy thinks she is 67years old??
then i read it again lol
Happy birthday Erin! As a military retiree, I only eat out when traveling to visit family. There's nothing that brings me more joy than to treat my children and grandchildren to a great meal. 😊
I actually guessed correctly, I have seen other articles saying to quit eating out after retirement. I completely agree with Erin's analysis of this issue. It is true that eating out is an expensive pleasure, but why did I save all those years and delay retirement if not to do the things I enjoy? As Erin points out, I found I reduced my eating out expenses after retirement simply because I have fewer opportunities to do so. If someone is in financial hardship they should certainly quit eating out. If you enjoy going to a restaurant a few times a month, you should keep doing so! Also, Happy Birthday! I hope you're going to a great restaurant to celebrate😀
It isn't the cost of eating out that scares me, it's the health reasons. When you get older, all your other numbers go up: cholesterol, lipids, blood sugar, blood pressure, waist line, etc. That tends to limit where you can go.
I woke up to the tragic drawbacks of our debt-based financial system during the last financial crash. Through discipline, determination and Julianne Iwersen Niemann my financial advisor, I was able to retire recently in my early '50s with a bit of land in the Williamson act on the California coast and an investment portfolio that can sustain my daily living. I try to spread the word and encourage many people I meet it is possible to achieve the goal of independence. Living below your means can be enormously rewarding!
@@alanwong8307 Exactly! I started “clean” during the pandemic. This eliminates 95% of restaurant food. I avoid breads, inflammatory oils, non-organic meat and vegetables. Only eat wild caught salmon and cage free pasture raised eggs at home. The oils with which restaurants cook with are low quality oils such as canola, peanut, soy, vegetable, and margarine. All highly inflammatory.
@@MB-uy5kh Depends on the restaurant, obviously.
Exactly!! I said the same thing. You spend all those years budgeting and saving wisely only to deny yourself one of life's greatest pleasures (in my opinion) of eating out!? I don't think so. You can't definitely limit the amount of times to eat out monthly, but all those years of planning wisely had to be worth the sacrifice in the end.
Happy Bday, Erin. 🥳🥳🥳
No mortgage is the best way to go. Well, more specifically, no debt is the best way to go. One should not be carrying debt going into retirement (even though many people do).
Absolutely!
Interest free debt seems ok, in fact if someone offered me interest free debt I would take as much of that as I can get my hands on!
Acceptable if debt is for passive income generating assets
LOL I have a mortgage till i'm 80... Still cheaper than paying for rent in L.A with an annual rent increase of 10% ....
I think it's a personal choice based on retirement income.
Happy Birthday Erin! I agree that in most cases the mortgage should be paid off, and ours is. As far as eating out...our problem is that we often order 2 martinis (each) when eating out, in addition to sharing wine with the table if we're out with friends. If we could just "eat out" instead of also "drinking out" we'd save a lot of money.
Ive been debt free for about 5 years and I really enjoy being able to eat out multiple times a week now that I can truly afford it.
Your content isn't finance cookie cutter. Thanks for taking the time to make your channel original. Happy birthday too.🎉
As Ramit would say, don't play small. The bottom line is to know your numbers and what your rich life is. There is no one size fits all category to cut costs for retirement.
Happy Birthday Erin!
Happy Bday! My answer is mortgage for sure. Eating out depends on your priorities -- not my priority, but no problem if that's what other people want.
Happy birthday!
We are definitely looking at food costs and cutting those expenses back as i plan to retire within the next few months.
I completely agree with Erin's analysis on this. While eating out has certainly gotten more expensive, so have groceries and car payments and pretty much everything else. But even when my wife and I were starting out in the late '70s the mortgage was always the big hitter in the monthly expenses. Usually followed by car payments. Food whether groceries or eating out once in a while (or some combination of both) was never anywhere near as much. Today my older son carries a mortgage payment around $2000 per month and a car payment of almost $1000 a month. Thinking cutting out a $50 trip to a restaurant will make a huge difference in his ability to save for someday just seems silly! I've never liked Suzy Orman or her advice. She reminds me of managers I worked for in my corporate career. I knew several who would pole vault over a $100 bill to grab that nickel on the other side, all the while bragging about their financial expertise! Oh and before I forget Happy Birthday Erin!
Funny about your Suzy Orman comments. I think she’s great for those just starting out, but the reason why people save and do the right things financially is so they can live their later years in relative comfort and not have to feel guilty if they decide to go out to eat or take a nice vacation.
I'm new to this channel. So far I'm enjoying it! I'm 62 planning on retiring at 67. Still learning. Thank you!! Happy Birthday to you Erin
I think it’s a balance. We eat out, but not super often. Yesterday we had breakfast at a local place we wanted to support, for instance. And it’s nice once in a while not to have to clean up the kitchen after you eat. In general though, I believe in living fairly frugally both so that I can take care of myself and retirement and so that I can do the things I really love like traveling. I’ll be retiring in about five years, and I’m waiting until my full retirement age because I enjoy my career and also enjoy the income. Being frugal let me to be completely debt-free. Until a year ago, that is, when I took out a refinance on my home to help get my son into a home of his own. And I’m deeply grateful that choices I’ve made allowed me to do that. It will be paid off in a couple of years, however, so I’ll be well out of debt again before retirement hits. Leaving a little below means absolutely the key.
A mortgage is more expensive than eating out every single day of every single month. Going to the grocery store can be quite expensive too. Live within your means is the best advice one can give.
That significantly depends on the mortgage and the eating out. To outdo a $2000 mortgage you'd only need to eat out for $70 a day across the month which isn't hard with the expensive delivery apps and how expensive restaurants have gotten. That doesnt even cover the fact that you're still paying property tax and home insurance even when your loan is paid off so your monthly cost for the house doesn't actually go to 0.
@@simonGonzales-d6l Can you recommend your advlsor?
@@LearningFast I think the point is that food and housing are both large costs. Housing has way fewer options to reduce costs, other than trying to get the mortgage paid off.
We track our budget pretty well. As a couple eating out real food(not junk food) averages over $50 per meal. Groceries run $250 per week. We budget $1500 per month for food. If we ate out 5 times per week, it would add $1000/month easily.
Our mortgage is paid off. Taxes, insurance , and HOA is $1100 per month. A mortgage would add another $1-2k or more. Then there are cars, at minimum figure another $500/mo.
Obviously paying off the mortgage is fantastic, but eating out does have a huge negative impact on your budget, with minimal returns.
Putting your restaurant budget towards your mortgage is probably the best strategy!
Happy Birthday! My personal choice is paying off my mortgage. As a widow, that's nearly 2k a month hanging over my head and if i mess up, I'm homeless. Nope. But as someone who CAN cook but doesn't like to cook, i can totally agree that eating out, take out and delivery services are killing my budget.
Happy birthday Erin! 🎉 Although eating out can add up, I feel the two most important aspects of bieing able to retire stress-free is no debt and no mortgage.
Happy birthday Erin! I like your approach of tackling the bigger costs rather than obessing about expenses that may not really move the needle. Making your meals all the time can be a hassle and eating out is one of the few fun things in life but of course shouldn't be done all the time. If one can plan themselves financially, then eating out won't make you broke.
Happy birthday Erin!! I love your advice in retirement and use it often. Keep up the good work and Happy New Year !!
Happy Birthday Erin!
I don’t mind a mortgage in retirement, especially if it is a low interest rate. Most houses are assets that appreciate and the opportunity cost of selling investments to pay off a mortgage can be worse. Cars in contrast have big depreciation and a big part of most budgets. I think the key is what you said about doing what you enjoy within your budget. That will be different for everyone.
Happy Birthday! Another approach to debt is right-sizing. Maybe a smaller home with a smaller (or no) mortgage. IMO the worst debt trap is automobiles, give me a reliable car that’s paid off.
I still drive a 2004 Subaru Forester and it's a great car that's supposed to be good for over 250,000 miles. Since I'm not even halfway to that number, it'll be my forever car.
Whether or not you pay off your mortgage should have a lot to do with your mortgage interest rate and your discretionary to non discretionary expense ratio. It makes little to no sense to pay off a 3% mortgage when the opportunity benefit of an 8% rate of return in stock investments is taken into account.
Exactly. Wife and I plan to retire in the next few years in our early 60's. We have a 3% fixed rate mortgage. I can't at all justify taking $300k to get rid of that debt when I can invest that $300k long term at a likely higher rate of return. Sure the rate for that $300k will be dragged down 3% compared to the rest of my portfolio, but I'll still have extra in my pocket from it... just a little less. No way would I pay this off. My 3% mortgage is a lucky gift.
True, but that assumes you’re actually investing the difference instead of spending it, which is what most people do.
Happy Birthday. I just discovered your channel and find it informative and enjoyable. Hate to be the hater but for me, not eating out so much was how I paid off my mortgage really young. Working hard, saving, living frugally and keeping an eye on the prize mean that now, at 65, I'm looking at retirement income somewhere between 50 and 100% MORE than I took during the working years. I'll credit plenty of luck with some of my success in business, a lot of hard working really smart people aren't so fortunate but still: sacrificing a lot early can make for a rosy future... and eating out all you want. Keep up the great videos!
Happy Birthday, Erin! I agree with you that focusing on the bigger expenses can have more impact, but I also see the value in cutting smaller expenses when possible can also have an impact. Thanks!
Happy birthday, Erin! A lot of it depends on your mortgage interest rate that you’re paying on your house. If your mortgage interest rate is very low such as for people who refinanced three or four years ago and got it below 3% then it may not be worthwhile to pay off your house. The money would pay off your house with could be used for investment to make 6-9% interest. With that kind of return, you’ll still be ahead.
I woke up to the tragic drawbacks of our debt-based financial system during the last financial crash. Through discipline, determination and Julianne Iwersen Niemann my financial advisor, I was able to retire recently in my early '50s with a bit of land in the Williamson act on the California coast and an investment portfolio that can sustain my daily living. I try to spread the word and encourage many people I meet it is possible to achieve the goal of independence. Living below your means can be enormously rewarding!
What if we have a decade long downturn in the economy? What if you become disabled, lose your job, have to care for your ill spouse, etc etc. That mortgage, is a financial boat anchor that you are dragging around the pond. Sure, keep a mortgage on a rental property, but your own home? No. The goal is to get rid of that thing in a reasonable time frame.
Happy Birthday, Erin! I was originally planning to retire when I paid off my mortgage, but my company downsized. After speaking with a financial advisor, I decided to retire early at the age of 58. I still have five years left on my mortgage, but I am happy with my decision.
Paying down a low interest rate mortgage early means you are investing less and lowering your retirement income substantially. The rate you are earning on your invesments should far outwiegh your mortgage interest.
You need to factor risk into the equation, though. You're guaranteed to save X% on your mortgage, but most investments that will exceed that come with commensurate risk. If you can wait out a bad market, then maybe it's less of a concern, but if you need liquidity, paying off the mortgage is the sure bet.
@@DavidVCastro I would imagine most people would have time on there side in this case, when planning for a mortgage (which is when you should be thinking about this) you are talking about decades. Wth an avg return of say 10% in the S&P you may better off taking the longer rate term. Today that is a little harder of a decision to make with day a 7% mortgaage rate, but if rates get down under 5 it is a no brainer and for those of us that were able to get sub 3% loans there is absolutely no reason to pay those off early as inflation alone pays that rate off.
@@gavinxm If were talking only about those just about to go into retirement, yes. Folks who are already retired for awhile may have a different equation for risk/reward. 🙂
@@DavidVCastro oh yeah, totally agree. People who have been retired for some time are likely focused on wealth preservation over growth.
Happy Birthday Erin! Love the content on the channel! Having a plan for the weekly meals ahead of time helps prevent the last-minute dining out. It makes the event of going out to eat more special when it’s more intentional!
Happy birthday! It’s good to see someone who isn’t ashamed of getting older. I agree with you on focusing the bigger expenses before retirement, and there’s probably a Suze Orman video somewhere that says the same. These articles are just entertainment.
Unfortunately, not all of us were financially literate early. I was 35 when I finally educated myself and started taking steps. I went from $176,000 in debt with zero savings or retirement to now, 2 years later, fully debt-free and over $1000,000 net worth. I know that doesn't SOUND like a lot, but I'm incredibly proud of it. Now I'm fast-tracking my wealth building (investing $400,000 annually) and don't owe a dime to anyone. It's a good feeling!
Wow you give me hope
Am 49..am From norway…
Please how's that possible, I'm curious
Please how do i go about it, am still a newbie on investment trading and how can I make profit?...
.
Don’t be confuse buying the dip in a bear market, with guaranteed future returns. Just because that company is down 60%+ from ATH does NOT make it a sound long-term investment. Make sure you’re investing in great companies. kudos to michelle sule
Happy Birthday! I know that eating out is a fairly substantial portion of my budget. I count it as entertainment (not food), but I don't have any intention of slowing down in retirement. I want to enjoy my retirement, and that means eating out! Trust me, I'm budgeting accordingly.
Happy birthday Erin! Love your contents. The incompetence and corruption that runs through this administration are getting more ridiculous. I feel for people with disabilities not getting the help they deserve. Thank you June Renae Matthysse, imagine investing $1.5k and receiving $11.8k in 20 days
That woman transformed my entire life for the better. Among the folks I've met, June appears to be the most trustworthy. I'm surprised you know her as well
Hi Erin, Happy Birthday! Your videos started showing up on my recommended page a few months ago and I've been watching and enjoying them since. I haven't skipped a single one and even watch some of the older ones. When I saw this topic, I nearly skipped it, since I just knew it was about not having a mortgage in retirement. I was surprised to see the subject was food related. Who knew. I don't find spending this miniscule amount on food a negative thing in retirement, if you can afford it, because most older people (me included) really enjoy eating out and trying new things. The mortgage on the other hand would be an expense that would really add up and cause issues as your income is more limited. I hope you had a great birthday and keep up the very interesting and informative videos.
This is one of the best financial advice videos I’ve ever watched! Thank you for bringing reasonableness to the conversation.
Thanks so much for watching!!
Happy Birthday! I just found you on a search I made on retirement and could not be more impressed with your knowledge!
I guessed credit card debt and the associated high interest rates. Thank you for your videos... and Happy Birthday Erin!
Happy B-Day!! I did think it was eating out. I’m in outside sales and have always fought the urge to have lunch on the road. Thanks for your knowledge and enthusiasm.
Happy Birthday 🍰
I do agree on the going out to eat, my wife and I eat out a few time a week to a sit down. We make this a our treat time, but eat smart getting water, going at lunch for deals, and cut the extras that inflate the bill we speak about this often, this alone seems to make it affordable and allows us to enjoy each other time and catch up.
We have not paid off our house but - very much in range to pay off it is going to be such a big expense done with ! We love these type of quality of live videos the most.
Happy Birthday Erin!! This is a tricky question. I'm 66 and have always lived within my means. It's worked! I told my kids "Don't get into debt w/ credit cards or expensive car payments. Get the interest headed YOUR direction, not the other way around." (Start young, people). We have a 3% mortgage w/ not much left on it which has freed up $$ to invest alot for retirement. We're not going to pay it off....yet But if we wanted to, we could simply write a check. Love your videos, Erin! You're very wise.... :)
Happy belated birthday! I agree with you about the mortgage since we do not eat out very much at all
I teach high school Financial Literacy & enjoy your content which I can infuse into my lessons. I’m also approaching retirement age and find your content applicable to my stage of life! Thank you !
Wow, didn't know high school had such courses! Wonderful!
Happy birthday. Your channel is so informative and I’m a senior exec for a large bank and still get great value from your financial advice! Thank you so much!
Totally agree with your thought process. Recently found you and am enjoying your videos. I'm 63 and plan to retire at 65
This is the first video of yours that I have watched but found it very interesting. I will be watching more on your channel. Happy Birthday!
Happy Belated Birthday Erin!! Awesome Channel thanks for sharing!
Happy birthday, Erin! I also thought it would be the mortgage. I agree with you, too, when you stated that eliminating eating out can suck the fun out of life! Thanks for all of your insight! Enjoy your channel!
BTW, Happy (belated) returns!! Hope your year ahead works out well! Next, I do agree with BOTH categories needing to be pared down ASAP.. but about the only way for most people to do this would be to take all the "restaurant money".. and apply it to their principal on their mortgage! Yes, it is important to note that many of us retirees eat out - more for social reasons - or a desire to just "get out" at all. As you say.. at least part of the problem. There is a another VERY expensive (but variable) "money drain" category: monetary "help" to kids, grandkids, and even charitable causes that the budget really can't afford.. yet we do it anyway.. you might want to address that one next video - even if you already have done it before.
Back to the mortgage.. I personally have experienced this, as I have been mortgage free since age 51.. and wow, talk about freedom!! YES, when nearly half of your budget goes to supporting a dwelling, find a way to get rid of that. I would agree heartily that "downsizing" from that huge house to a smaller dwelling after selling (we are in the process of that).. is a great way to save more money - typically you will have lower taxes, insurance premiums, lower utility costs, but above all, less to maintain. A 4000 sf house.. compared to a 1800 sf house.. think about it.. single story.. no more 24 ft. ladder work, haha..Thanks for the video!
Happy Birthday Erin! No debt should follow you into retirement and sticking to a budget before and after retirement will allow the freedom to prioritize what is important to you.
Happy (Belated) Birthday Erin!!! You're one of the best at money talk on TH-cam!
Wow, thank you! 😊🙏
Happy Birthday Erin! I guessed mortgage also, but I understand cutting the dining out expense being on the list… not the first expense to cut first though. As always, thank you for great videos.
Enjoy your content. Happy birthday! Agree that the bigger the dollar ticket items are the more important to focus on prior to retirement.
Happy Birthday!!! You are right! Focus on controlling big expenses first!
Happy Birthday! I agree with your points about cutting big expenses like mortgages and cars. Something else about vehicle loans to make things even worse.....new (and old) cars depreciate the moment they leave the dealership. So, if you take out a loan to pay for them, you are making principal and interest payments on something that is losing value over time. At least with a home purchase you have a chance to build equity with a (small) portion of that mortgage payment as well as (hopefully) experiencing home appreciation over time (depending on market trends, etc.). As you mention, depending on your specific financial situation in retirement, the faster you can eliminate your mortgage payment the faster you will be able to 'enjoy' that extra chunk of retirement funds.
Happy Birthday to your favorite financial guru. Wife and I are 63 debt free and rarely go out to eat. Thanks for your posts!
Happy birthday!!
I thought a mortgage or car payment would be the advice. But eating out makes total sense too.
My wife and I eat out too often (which is my fault). But we often use the experience in the following two productive ways.
First, we refine our home menu with things we experience and enjoy at restaurants. I love cooking and my wife loves crafting new cocktail recipes, so we analyze flavors and draw inspiration from our favorite meals and cocktails enjoyed when we dine out and try to recreate those things at home.
Second, we enjoy trying to make cool infusions and garnishes we experience at restaurants as a hobby, then sharing these things with friends whilst hosting happy hours or parties at our house. For example, we recently learned how to make falernum (a liquor made from ginger, toasted almonds, lime juice, lime rinds, allspice, and cloves) and orgeat (almond liquor) to perfect a tiki drink recipe we tried at a local tiki bar. We also learned how to make rock candy sticks and brûléed citrus slices to use as cocktail garnishes. We learned how to grow and propagate tomato, onion, and pepper plants to grow and perfect our home salsa recipe, and how to make tortilla chips in the air frier, all to try to match our favorite flavors from our favorite places.
So we enjoy dining out. But perhaps even more, we enjoy trying to replicate what restaurants make for us so we can share those flavors with friends.
Best wishes on your Birthday Erin! I am also retired and really enjoy your channel. I regularly share some of your favorite (my favorite) videos with my children in the hopes that they can take advantage of you inspirational and informative talks.
Happy Birthday Erin🎉! Wishing you a wonderful day! Yes I also thought it was a mortgage payment.
I’m 57 and retired 3 years. My 2020 car is paid off and have a low mortgage payment. As you stated, i saved and invested long and hard over many years and now have a considerable nest egg so the mortgage is more then doable. Interestingly enough, i now cook more than ever and eat out much less then when i was working. Thank you for your very informative videos and all the work and research you put into them. They’ve helped me and many others. You’re the best 😃
Best birthday wishes Erin. Looking forward to many years of your videos!
Happy Birthday, Erin! Thank you for your money advice.
Happy Birthday Erin. Agree, mortgage and car payment are things that one should not have going into and during retirement.
Happy Birthday Erin!! Enjoy your day.
Happy birthday!
Definitely agree that a mortgage is the logical answer. I can understand Suze's answer, but it is I personally will be starting with eliminating the larger expenses.
Erin, happy birthday. I hope you had a great day.
I retired at 57. Key for me was having the house paid off so that my monthly expenses would become very predictable. I know my run rate given real estate taxes, insurance, utilities, etc. and therefore know how best to manage it. An important thing for me is to be comfortable in my own home, which means that I will run the AC all summer to be about 68-70 degrees and 70-72 in the winter. I have been to many of my friends home and I either sweat in the summer of freeze in the winter. I personally don't want to save money like that. I also think that people need to better understand the cost of buying good ingredients and cooking at home versus how expensive it is to have a comparable dinner out. Good segment on your part. Stay well.
Happy Birthday and thank you for your channel
!!!!
Happy birthday! Dining out for me is more of an occasional entertainment choice than meeting a food need. I'm definitely working to eliminate the mortgage before retirement.
I just started watching you but I’m liking the advice so far. Thank you.
Happy Birthday! Thanks for all of the advice. Life is meant to be lived, but still within your means.
Happy Birthday!! Thank u for making these topics so much easier to understand.
Happy Bday - totally agree that mortgage is much bigger impact - but depends on how many years are left on retirement date
I thought it was for sure going to be to cut out the mortgage! Love the vid Erin; always love seeing your videos show up on my feed! Also, happy birthday!
Happy Birthday- it's a great month to have a birthday in! I love listening to the information- you have a great way of sharing it, I like how to the point you are.
Thanks for the info you provide… and happy birthday!
Happy Birthday from down under! It's great to see your channel grow over the years.
Happy Birthday 🎂
Great retirement advice. I agree that having a mortgage paid for is more important.
Happy birthday and thanks for what you do!
Happy Belated Birthday and thank you for your channel!
Thank you so much!
🎉happy birthday!!
I like to eat out, but also know that the expense adds up. I like not having the mortgage having to keep track of the extra bills.
Happy birthday! Eliminating housing costs would give you so much flexibility in retirement; I want to have the ability to enjoy eating out as much as I desire…keep the content coming!
Happy Birthday! Thanks for another great video. Suze is the financial influencer I like the LEAST! Getting rid of the mortgage is way more important.
Suze….🤢🤮
Clearly you don't know anything about Suze Orman or what she reccomends. She says to pay off a mortgage before retirement. The question is not do you pay off a mortgage before or after retirement. The question was should you cut back eating out in retirement.
Happy Birthday! I agree that's better to get the big things paid off. It takes a lot of lattes to make a mortgage payment.
Happy Non-Amazon-Eligible belated birthday, Erin! Such a strange recommendation by Orman, to stop eating out when you're in retirement. IDK if she just assumes everyone is out of debt going into retirement, or something else, but I totally agree with you that carrying debt into retirement (of any kind) is a risk and burden. Which I think is something that those that are considering retiring early don't seem to appreciate. We are in the category not listed in eating out frequency, those that eat out
Happy birthday Erin. Eating out is one of the things I'm most looking forward to in retirement...completely agree
Felt v hungry mid morning, what’s easy is get out and go for pizza, as I hovered over the fridge shelves the cauliflower looked at me, the lentils and rice in the shelves , and dozen eggs, and other things to sautee and cook, voila, my warm and delicious meals cooked in no time to eat, it was fun. Joy of cooking or walking is itself fulfilling. Happy Birthday, Erin🎉just listening to your advice, tips is quite helpful, reassuring , no need for Amazon card 😊. Best Wishes 🌹
Many more happy returns of the day Erin! 🎉
My first guess of reading the headline was also to close the Mortgage before you retire 😊
Happy Belated Birthday! Hope it was a great one! Must have been pretty good - since you had no bloopers to share 😁. Was wondering where you were going with this one on expenses, but you (of course) hit the nail on the head. Live moderately so you can spend on experiences while also securing your future. I admit, I did take that a bit too much to the extreme for years - cutting too much on the experiences as well the big expenses. However you live and learn, and now I do have the funds and the mindset to focus the experiences (of course, still within reason). Hope you threw caution to the wind and did something great and memorable on your birthday!
Happy Birthday Erin! You're the best!
Happy Birthday! I do enjoy your channel. You provide great content and present it very well. Good voice, good presence. Thank you.
Happy Birthday, Erin! I though the expense would be a mortgage.
Suze Orman's comment "to live below your means but within your needs" (which is a Needs vs. Wants observation) caused me to realize something: Spending on a Need when you already have the Need covered is a Want, e.g., adding to an already excessive wardrobe is not a Need, it is a Want. Wants are not all bad, but must be aware that it is a Want and not a Need. Yes, I know that this information is not really germane to this video, but it's a small Golden Nugget of Truth that I just realized, and I just had to share it.
Happy Birthday Erin!! Yeah! I would have thought “Mortgage” as well.
I guess cutting out or reducing dining out makes sense as well… but there’s eating out fancy style and there is eating out reasonably!
Happy Birthday, and thank you for this valuable observation!
Happy birthday! I'm honestly not surprised that Suze would suggest cutting out eating out considering her stance on daily coffee (as you referenced) But I like the Ramit Sethi's approach of allowing yourself those things that make your life worth living. If where you want to spend your money is to have your dinner prepared by someone else and not have to cook for yourself , then that's your "luxury" item that makes your retirement and life more fulfilling.
But if cooking is your joy, then it only makes sense to not eat out. I also agree to tackle those bigger expenses, like housing, to free up money to live life with a little more satisfaction and happiness.
Happy Birthday! I appreciate your more balanced advice!
Thank you!!! 🙏
Happy Birthday! The title "The ONE Expense You Must Cut Before Retirement" made me think I really should listen to this. I liked your delivery and honesty and decided to subscribe. My gut tells me I can learn a lot from you. I need to because I'm not as prepared as I need to be. I look forward to learning!
By the way, we eat at home 95% of the time though we do plan on going out for my birthday (2 days after yours). My goal is to pay off my mortgage early even though our interest rate is low. It just seems to be the prudent thing to do. I'll be curious what you recommend.
Happy birthday!
With a robust nest, and a low mortgage rate, I think it really comes down to personal preference. Me, I’m pretty debt diverse, so I am very much looking forward to paying off my mortgage early and living debt-free. I think that’s an emotional win. I have a mortgage that sits at an interest rate of 3.2%. You can absolutely make the argument that you can come out way ahead otherwise investing money in the market. So I think it comes down to personal preference. Also, thanks for subscribing, and welcome to the channel! 😊
@@ErinTalksMoney Thank You!
I guessed this one. So many life events and memories involve gathering to share a meal. The social and emotional impact of eliminating this in retirement should not be minimized.
The cost of hosting at home would be more than the occasional restaurant meal.
Definitely agree mortgage payoff is a higher priority for me.
Happy Birthday!🎉
Happy Birthday Erin! I just started following you (literally today on your birthday!) after watching "What Happens To Social Security When You Retire at 55". Great advice and wonderful tips. Thank you for sharing your financial knowledge and helping others who in all stages of their financial work lives. I hope you enjoy your special day!
Welcome to the channel! 😊
Happy birthday, Erin! You’re doing such a great job with your videos! Keep it up!
Happy Birthday! I do agree about not eating out, it really adds up.
Happy Birthday! As for what/how to prioritize expenses before (and after) retirement, it rather depends FIRST on how comfortably one is SAVING. If you're living paycheck-to-paycheck, there are bigger priorities to deal with than not eating out, for sure. But if other things are in control, I totally agree if one is able to, eating out is both a mini vacation, a social fulfillment, and an enjoyment. I've lived this way, since long ago, and yet always lived a bit "beneath my means" all along, and even into my retirement. I'm enjoying my restaurant visits with friends and family! :)
Thanks for all your thoughts and recommendations!
Happy birthday, Erin! I always enjoy your content.