Should I Ruin My Retirement By Helping My Child Through College?

Should I Ruin My Retirement By Helping My Child Through College?Today’s topic will probably be a touchy one. Ever since I paid off my $38,000 worth of student loans last year, I have received many e-mails from parents who are interested in seeking help for their children.

These e-mails are all related to whether or not parents should risk or sometimes even ruin their retirement by helping their child through college.

There is usually one common theme in these e-mails – the parents are usually not on track for retirement, they have debt, or they cannot afford to help their child in college.

Here are some of the stories I have heard in these emails:

  • The parents have over $100,000 in student loans that they took out in THEIR name so their child could go to school. These parents are not on track for retirement and they have a lot of other debt besides student loans.
  • Their child is in medical school and the parents are paying for all of their college expenses plus food, car, rent, etc. These parents are not on track for retirement and they have debt.
  • Their child is in law school and the child said that if his/her parents don’t continue paying for their expenses, that they would hate their parents. This child was even more mad when the parents printed out every single blog post of mine and gave it to them (I did not tell their parents to do that, it was entirely their idea). The child said I was ruining his/her life (yup, that actually happened). These parents are not on track for retirement and they are afraid of losing their child now as well.

I know I’m not a parent.

I’m not a parenting or child expert either.

I know I don’t know what it is like to have a child and the feelings that go along with that. However, I do know that I raised my younger sister after my father passed away and her attending college did make me want to help her so that she wouldn’t have to worry about money as much.

The other day I was talking to my sister and she was bringing up different ways she could possibly side hustle so that she could make extra money. It sort of made me feel bad, and for a moment I thought about helping her financially. Luckily, she snapped me out of it and told “You’ve helped me enough already. Do not worry.”

Her saying that really made me happy. I actually had tears in my eyes!

Instead of just giving her money, I helped her with her budget, I have supported her, I helped her find side hustles so that she could make extra money, I helped her make a plan, and more.

I know all of these other things I am doing have shaped her into an awesome young lady. Yes, she has to learn things the hard way but in the end she will be just fine.

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Retirement, Financial Independence, and Living Life

Retirement, Financial Independence, and Living Life

This is what a happy life is to me.

After two very long posts this week, DIY Wedding Ideas – Worth It Or A Waste Of Money and How Much Money Should I Save Up For A House, today’s post is a somewhat shorter (and a rambling) one.

Lately, we’ve been home “shopping” online a lot.

It’s almost become an addiction.

Okay, who am I kidding? It is an addiction. Luckily, shopping for homes online is a free hobby of mine.

My favorite websites right now are Zillow and Realtor and I look at each a few times each week. We don’t plan on moving for around two years from now, but it’s still something we plan on putting a lot of thought into.

Before you think both me and Wes are crazy planners, I do want to say that it’s mainly just me who is crazy. If Wes had his way, we would have moved yesterday.

We want to move to a new state (Colorado is winning right now), and the next home we buy will probably be our “forever” home. We plan on living in it for a long time and possibly retiring in it.

The whole thing sounds a little crazy, even to me, especially since we are only 25.

 

What is a happy life?

Colorado is exactly how I imagine a great life (and retirement) would be. Whenever we visit the state, we are always amazed by how beautiful it is and we even love the air (it’s not humid like in St. Louis where you are constantly walking in a sea of mist).

With our future move to wherever we end up deciding on moving to, we have been thinking a lot about what a happy life is.

Every time we talk about possibly moving to Colorado, it always leads to us saying something similar to “this is how I imagine retirement would be. This is a happy life.”

Some think we are crazy, but why do so many people think you can’t enjoy your life until you reach retirement? Why do we have to wait to like where we live until we reach retirement age?

There are plenty of ways to save for retirement, while also enjoying the life you live right now.

My dad passed away in his 50s, before he was even able to retire. Well, technically, he “retired” when the doctors told him he only had a few months left to live. So, he spent his “retirement” in a horrible way. He worked extremely hard his whole life and saved for retirement religiously, and it’s something I’ve always admired. However, I don’t want my whole life to be all about working.

I want to be able to enjoy life now, instead of waiting decades down the line to possibly (sorry if that sounds morbid) enjoy myself.

 

Anyway, what does retirement mean to me?

Since we plan on moving somewhere enjoyable soon, does retirement mean anything to me? That is a question someone asked me recently. They said I would have nothing to look forward to in the future.

Retirement to me means financial independence. I want to have freedom when it comes to my career and also when it comes to how I enjoy my life.

I don’t see myself ever not working, unless I was prevented in some way (such as medical reasons). I like the motivation that work brings, and I like what I do. However, I understand that my feelings about everything may change in the future, and that is why financial independence is something I want to strive for.

 

How do I plan on reaching retirement?

I’m definitely not one of those people who plans on cutting everything in their lives in order to reach retirement. I still want to enjoy life, take vacations, spend time with friends and family, and more. However, I think doing all of that, reaching retirement, and living a fun life is all possible at the same time.

I plan on reaching retirement through a mixture of cutting expenses, growing my income, and hopefully adding some passive income to the mix. Thanks to several different personal finance bloggers (mainly Paula at Afford Anything), I have been more and more interested in getting into real estate and renting out places both long-term and short-term (such as through AirBnb or VRBO). That is a passive income area I would like to get into.

Even though I am no where near retirement, I do want to live an enjoyable life right now though.

 

How do you see yourself in retirement? Living in another country? Working still?

What does a happy and successful life look like to you?

 

Do You Have Life Insurance?

Do You Have Life Insurance?

This is my family :)

According to the insurance research firm LIMRA, life insurance ownership is at its lowest point in over 50 years. This is a crazy statistic considering that approximately 44% of those who took part in the survey said they don’t have enough money to pay for expenses if their loved one were to pass away suddenly.

This study also reported that around 30% of households do not have life insurance at all.

One major task I have failed at since leaving my day job in 2013 is finding life insurance. When I had my day job, I had a small amount of life insurance provided and paid for by my employer. Nothing crazy, but I never looked any further into it at that time.

Now that I work for myself, I have no life insurance and that is something I would like to change, especially since we plan on having children in the next few years.

Even though finding life insurance is something I think about a decent amount, I actually haven’t done anything to start this process.

 

When does a person need life insurance?

Okay, not everyone needs life insurance. However, most do.

If you are single, have no debt, and no one depends on you, then you probably don’t need life insurance.

But, just because you are single doesn’t mean you don’t need it. If you have debt and have co-signers on your debt, then you should absolutely have life insurance. This is because if something were to happen to you, you don’t want your co-signer (it could be your parents, siblings, etc.) to have to be stuck paying your debt because you didn’t think of a plan.

I recently read a true story about a young adult who did not have life insurance. They passed away suddenly and left their student loan debt behind to their parents, who were her co-signers. They were left with monthly payments on her student loans of nearly $2,000 a month…

Also, if someone depends on you, such as a spouse, elderly parents, or children, then you definitely want life insurance as well. You want your loved ones to be taken care of if something were to happen to you, correct?

Do You Have Life Insurance? 3

What do I need to do to find the right life insurance for me and my family?

The other day, I heard about a company called Quotacy. They have a great looking website, so I won’t lie, that helped draw me in.

The website is really easy to use. All you do is click on over to “Get Started” on their website. Then, they ask for a little bit of information (such as your zip code, gender, etc.) and then you press “View Your Quote.”

They have easy to use sliders where you can adjust the duration of your coverage and the policy value so that you can try to find a monthly premium that works best for you.

After that, they ask some routine medical questions and then policies from various companies pop up on your screen. This is so that you can find different life insurance policies and how much your monthly premium varies from company to company so that you can find your best price.

Quotacy will take a second look at your online submission, and shop the market one more time to ensure you’re getting the best price. If they find a better one based on your unique lifestyle or health characteristics, they will communicate this with you, and let you decide which company to apply for. The insurance company you select will then review your application, and make the final approval before it goes into affect and Quotacy will keep you informed every step of the way.

Do You Have Life Insurance? 2

Some of the great things about this website include:

  • Quotacy doesn’t require you to log in or register in order to see estimated pricing.
  • Everything is VERY easy to understand.
  • It’s very quick to use and you can get an estimated quote in one minute.
  • They have an awesome blog that can help you understand life insurance better.

 

Do you have life insurance? Why or why not?