How To Retire 6 Months Every Year
(Page 16 of 22)
May/June 1970
By Irv Thomas
2. Go to the library. Not to read, but to browse. Walk along the open stacks of non-fiction and pick up whatever interests you at the moment. Follow your own intuition. If this doesn't work at once, try it again. You will soon find yourself drawn to some part of the library for either a study-type or an activity-type subject. Pursue your interest wherever it leads. Branch libraries are best for a start, if you bury easily under sheer volume.
RELATED CONTENT
3. Also at the library, ask about local clubs or discussion groups. If you're bashful about this, turn to the telephone book under Clubs and run down the list. If something sounds good, phone or write for more information.
4. Check the local recreation department for sponsored community activities and groups.
Find something to fill those vacant hours. It is far better to have too much to do than too little. If you feel pushed, you can always cut back again.
DISCRETIONARY SPENDING
The concept of discretionary expenses may need more clarification. In your current lifestyle, discretionary expense is the major portion of the budget because - by definition - it is that which is not necessary for life support. The object of this program is the entire separation of discretionary spending from support expense. Then - with the awareness that it IS totally discretionary - to turn such spending toward that which has real meaning in your life.
The support expense, once its true level is achieved, is necessary and inevitable. It should equal from 4 to 8 months work per year (see Chart No. 1). Discretionary spending, however, competes directly against free time and must be evaluated accordingly. There can be no hard rule on this spending because it is a function of each individual's needs and many variables are involved. But there are some good guidelines.
Chart No. 2 will show you the cost in work time for different levels of discretionary spending as a function of your take-home pay. This will enable you to arrive at a target amount according to how much additional time you are willing to work. But beware of judging the discretionary limit by your current standards if you are intent on attaining and preserving your freedom.
There are two basic rules for discretionary expenditures: One, each should be a single purchase and not a continuing series; Two, the purchases should not be immediately consumable. A bicycle is a beautiful example. Even though relatively expensive as a single purchase, it is a one-time purchase - practically maintenance free - and will last for years. Other good examples are musical instruments, well made clothing, a radio, reference books or a typewriter.
The pitfall to watch for is the item which appears to be a one-time purchase but requires or induces continual outlay. Phonographs, cameras and golf clubs are examples. These must be considered carefully lest they create new addictions. A night school course is consumable in a sense, but it can be the medium for permanent enrichment. It also comes to a definite end without any requirement for repetition. Neither statement can be made for golf clubs.
In this context a $50 allowance per month is a considerable amount. It would not be so for addictive expenditures. Going out to dinner and a show every week could blow the allowance and leave absolutely nothing to show for it except a craving for more.
Page:
<< Previous 1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
14 |
15 | 16 |
17 |
18 |
19 |
20 |
21 |
22 |
Next >>
