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I invented a new term. It's going to take off. Finance and Economics classes will start using it regularly when teaching students about personal finance concepts. Mini-retirement. I'm not totally sold on that term. Maybe someone can suggest better. It's when you stop working so hard, stop saving so obsessively, and enjoy life a bit more. You still work- but maybe take a job that doesn't pay as well, but offers better hours or content.
Anyways- my boyfriend is a hugely dedicated hard worker. I am exhausted listening to his schedule from his primary job, and all the side adjunct jobs he juggles.
Unfortunately, he was never really introduced to personal finance concepts. He has always worked hard, but then kind of gave the money away to low or no income relatives and family. And he was in the habit of promising future money to present problems (credit use). So he spent most of his working life hustling for money and jobs with nothing saved for himself.
Recently I introduced him to personal finance concepts. I got him to reluctantly set up a 401k. He only did it to make me happy. But a few months later he checked it and he was FLOORED at the account balance. He had already surpassed 10k!
Since then, he's very trusting of whatever I suggest. I've been just going lightly with him. But now he's almost at a point where all credit is paid off. And he hasn't taken any new credit. And he rented out his house because he moved in with me. He's been talking a lot about planning to have around $20k in a savings account by the end of the year if his jobs keep going as he has planned.
So earlier this week I approached him about paying off his mortgage early. It had NEVER OCCURRED TO HIM. (say whaaaa?) Anyways- we logged into his mortgage account and found the amortization calculator. We played with numbers. I told him I was tracking to have my mortgage paid off in 7 years from now. That would put me debt free. I showed him my spreadsheet- how every year I anticipated my net worth to increase. And be debt free at by age 45. He was kind of discouraged that I was so far ahead of him financially. But then he got his head in the game and committed to some amount (like $1500 more than the mortgage payment) and it would have his mortgage paid off in 7 years too! We would be mortgage free in the same year!
I am SO EXCITED to do that together! So I told him we could both mini-retire that year. (I was already planning to do it- but had not told him about it). I told him that once his mortgage is paid off- he can stop hustling, he can take his foot off the gas. He can take a breather and decide what jobs he wants to take. He can work as hard or as little as he wants (he will never truly stop working).
Funny enough- he keeps dodging that concept. Talking about working this hard till he's 65 (he is 43). He wont let himself imagine relaxing his workload. But I don't care.
We are tracking towards a HUGE ACCOMPLISHMENT TOGETHER! I'm SO EXCITED.
And also- he called me today from work. He's adjusted his budget. He now plans to pay off his mortgage in 3 years (insane), buy another rental property and pay it off by the 7year mark that I pay off mine. That is his new plan. He has laser intense focus.
I worry he will get burned out. But once I used the term Lifestyle Creep on him- he totally latched onto that and said it was totally him. He recognized it, and now doesn't want it to happen. So he is going to save a $10k emergency fund- and then apply all other income to his mortgage.
I don't know. I'm so proud of him. I'm so excited about our future. And I'm really excited we can plan to accomplish such a huge task in the same year. This post is me sharing that excitement. Since I cant really talk about it to my friends.
Anyways- my boyfriend is a hugely dedicated hard worker. I am exhausted listening to his schedule from his primary job, and all the side adjunct jobs he juggles.
Unfortunately, he was never really introduced to personal finance concepts. He has always worked hard, but then kind of gave the money away to low or no income relatives and family. And he was in the habit of promising future money to present problems (credit use). So he spent most of his working life hustling for money and jobs with nothing saved for himself.
Recently I introduced him to personal finance concepts. I got him to reluctantly set up a 401k. He only did it to make me happy. But a few months later he checked it and he was FLOORED at the account balance. He had already surpassed 10k!
Since then, he's very trusting of whatever I suggest. I've been just going lightly with him. But now he's almost at a point where all credit is paid off. And he hasn't taken any new credit. And he rented out his house because he moved in with me. He's been talking a lot about planning to have around $20k in a savings account by the end of the year if his jobs keep going as he has planned.
So earlier this week I approached him about paying off his mortgage early. It had NEVER OCCURRED TO HIM. (say whaaaa?) Anyways- we logged into his mortgage account and found the amortization calculator. We played with numbers. I told him I was tracking to have my mortgage paid off in 7 years from now. That would put me debt free. I showed him my spreadsheet- how every year I anticipated my net worth to increase. And be debt free at by age 45. He was kind of discouraged that I was so far ahead of him financially. But then he got his head in the game and committed to some amount (like $1500 more than the mortgage payment) and it would have his mortgage paid off in 7 years too! We would be mortgage free in the same year!
I am SO EXCITED to do that together! So I told him we could both mini-retire that year. (I was already planning to do it- but had not told him about it). I told him that once his mortgage is paid off- he can stop hustling, he can take his foot off the gas. He can take a breather and decide what jobs he wants to take. He can work as hard or as little as he wants (he will never truly stop working).
Funny enough- he keeps dodging that concept. Talking about working this hard till he's 65 (he is 43). He wont let himself imagine relaxing his workload. But I don't care.
We are tracking towards a HUGE ACCOMPLISHMENT TOGETHER! I'm SO EXCITED.
And also- he called me today from work. He's adjusted his budget. He now plans to pay off his mortgage in 3 years (insane), buy another rental property and pay it off by the 7year mark that I pay off mine. That is his new plan. He has laser intense focus.
I worry he will get burned out. But once I used the term Lifestyle Creep on him- he totally latched onto that and said it was totally him. He recognized it, and now doesn't want it to happen. So he is going to save a $10k emergency fund- and then apply all other income to his mortgage.
I don't know. I'm so proud of him. I'm so excited about our future. And I'm really excited we can plan to accomplish such a huge task in the same year. This post is me sharing that excitement. Since I cant really talk about it to my friends.
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