No way to live. But if I’m let go, I won’t be able to survive for more than a couple of months without a job. There are many mouths to feed, and quite a bit of debt to manage.
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When I joined the oil field wise old man said you get paid well but never live on more then 1/2 of your pay. One day in your career you will have 0 pay for a while and it might happen multiple times in your career. Network inside and most importantly outside the company as you will need that network eventually.
OP- No, quite the contrary, you have been introduced to the only way to comfortably live and eventually one day comfortably retire. The comments on this post illustrate examples of how to plan, save and invest. Check the websites focusing more on the FI part of FIRE. It sounds terrible at first but unless you are living severely beyond your means you likely need to just make a few adjustments, maybe tighten up for a few years, then you will be right back on track and have more funds than you need. There's no way that a position at CVX or similar can not provide you with that. The end of a Chevron position is not the end of everything. That severance gives you time to find something else. Just don't hold out out too long for the ideal job if you can find something even halfway decent for the short term. You can always switch again, Almost everybody does.
Thanks, I wish you the best. I hope you have a long and comfortable retirements.
When I retired, I initially planned to be very frugal and adopted an aggressive withdrawal rate strategy. I assumed I would withdraw just 2% annually, as my portfolio was 50 times my annual expenses. However, I quickly realized that it’s much easier to maintain a frugal lifestyle while working. In retirement, a 2% withdrawal rate turned out to be far too conservative. My lifestyle has since expanded, and my withdrawal rate now ranges between 2.5% and 3%. Despite this adjustment, I’m comfortably within the chubbyFIRE territory.
Can I ask your approximate net worth at retirement?
Created my own Google sheet and form. Getting your hands dirty is the best way to learn how money works. Also Earlyretirementnow has an excellent spreadsheet for modeling safe withdrawal rates. I highly recommend his blog though it can be quite technical.
Thank you for sharing! It’s inspiring.
One more question, for budget tracking do you suggest a specific approach or app, for example Mint? Thanks
I discovered the FIRE community early: Mister Money Mustache, JL Collins, Early Retirement Extreme, Early Retirement Now.
Couple with single steady income, no kids, over 200K at the end of my career.
Bought a condo just before retirement in LCOL area, always rented cheap apartments.
Never had any thrill buying stuff. Tracking to this day every dollar spent.
Otherwise exceptional market conditions since 2009 (I doubt it will last hence the low sub 3% withdrawal rate).
Was it worth it? YES!
Question for Post ID: @1epk+1w54XNtP
Awesome that you managed to do this! May I ask:
What was your salary in 2020?
Did you rely just on your salary to live or shared expenses with someone else?
How were you able to live on such a low percentage of your salary and do you have any tips and tricks to share with us?
Thanks and well done!
I had been saving 20, 40, 60 and nearly 80% of my salary in 2020 when I took the EOI. Now I am golden, FIREd withdrawing less than 3% of my investments. Took about 15 years to do it.
Suze Orman said to always save for a rainy day, even on the sunny days.
saving money, paying off your debts (mortgage, student loans ,etc...) is always a great idea regardless of who you work for and will help one build a strong retirement plan.
@igg, encouraging someone to seek satisfaction in saving more and understanding financial preparation is "praying upon someone's fears" ???
Grow up, little fella.
Imagine being absolute je-ks praying upon someone’s fears. Freakin nerds.
I have been saving every penny that I can all of my working life and it's an incredibly fulfilling and satisfying way to live! I have always been well compensated and have had every thing I ever needed except for when I was first starting out I needed to work a bit harder. I have never had a car loan, no need for the hassle, just paid in full. Some times it's not advisable based on the terms and market conditions but why bother, they pay us well. Good luck and get on the savings bandwagon with the rest of us!
OP:
I feel for you, and I want to be a bit more empathetic to your circumstances. We don’t need to pile on with criticism, especially not knowing OP’s exact circumstances.
Up until a few years ago, I used to save 15% to 25% of my pay, and frankly felt pretty smug about it. Fast forward to current day, and I had to drop down to just 2% (to at least get the match). Both my parents had dementia, so costs for 24/7 care for them was astronomical. Once they died, I “inherited” my older brother, who has been unemployed for years and very likely is in the early stages of dementia, as well.
I share all this not for a pity party but to highlight how precariously many of us are living, frequently through no fault of our own. 💩 happens, and unless it happens to you, particularly in a never-ending, cumulative fashion, I don’t think you can fully grasp the strain and anxiety that those of us in these situations feel.
Chevron had been a great place for me to work, and I still love what I do. However, the past ~10 years, with constant reports and the looming threat of job loss, have really taken a toll.
I am not sure how much more of this one can take. I wish you well, OP, and to others in similar predicaments.
I don't know how long you've been in the industry but oil & gas has always gone through layoffs so I'm not sure I understand why you haven't always been saving or even considered the industry mass layoffs when popping out kid after kid. I hope you keep your job, but let this be a lesson to reduce unnecessary expenses regardless of current industry forecasts.
Not wasting money is the only way to live.