Wednesday, October 15, 2014

Why I Save

You may have noticed in the past couple months that I have focused on saving money.  I have increased my retirement contributions to 10% this summer and just upped them again to 12%.  I started a retail investment account and contributed $11,000.  Since today is payday, I just added another $2000 to it also.  Our liquid savings is sitting at $10,000.  The reason that this has been my focus lately is because of my father-in-law.

He turned 61 this year.  They were planning on retiring early this year but things went a different way.  About a year and a half ago, he had routine knee surgery and then back surgery.  Suffice to say that neither surgery was routine and his life hasn't been the same since then. He had massive complications with both.  Then he had a second back surgery.  He was told to get out and walk after that.  He was walking and fell and hit his head.  He was taken to the ER and was in critical care for a week.  He recovered somewhat and returned to work.  He then had two more falls.  The last fall was last June.  He has been out of work since then.  He has disability insurance but they are arguing with worker's comp.  Their income stream has taken a huge hit.

This has been a huge financial derailment for them.  They were planning on retiring but instead have had less income and much greater expense between medical expenses, time off work for my mother-in-law, and travel expenses as they have had to travel to other cities for second opinions.  

This has been an important reminder that things don't always go as planned.  We need to save money when we can because nobody knows what the future holds.  

7 comments:

  1. Wow.. I hope he's ok. Your reasons are the same for why I started heavily saving now.

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  2. Agree 100%!! My goal is 20K in savings by the new year... it's hard, but I'm determined!

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  3. That is such a sad situation especially for people that were trying to do right by their finances.

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  4. I'm so sorry about your FIL! Saving for the future is always on my mind. We don't contribute nearly enough for retirement (and won't for a while with two little ones on the way...) and it worries me because we are already in our 30s. We try to do what we can but it might not be enough when we are older...

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  5. You are smart to save. I can attest to 'things don't always go as planned'. I believe a good disability insurance plan and health insurance is a great way to protect yourself.

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  6. There's nothing like a family crisis to have you re-thinking priorities. Mine came a couple of years ago when my father passed away at 57 years old. For me, I decided that it was more important to spend time with family over saving/debt repayment because those memories were more important. You never know when your last visit, will be your last.

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  7. I agree when you say that it’s important to save money for unforeseen circumstances. It’s important to plan for the lifestyle we want, but it’s also equally important to have a plan B. This protects our quality of life from being derailed due to emergencies. Thanks for sharing your story. It shares a very important lesson, so we featured it in our Weekly Digest. You can read it here http://www.ltcoptions.com/weekly-digest-estate-planning-going-gray-fall-prevention-technology/.

    I hope all goes well with your father-in-law and the rest of your family. You have such a beautiful heart.

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