It Never Looks the Same Twice

When you look at an intricate painting, you tend to notice different things, depending upon your present perspective and what element currently holds your focus. I’ve learned that hindsight is very similar; events look very different as the lens through which you view them evolves. When I started sharing my experience leaving a pension behind, I ended with the question “would I do it again?”. In that post, I was focused on the long-term financial impact. I do realize even pensions aren’t guaranteed; in fact, the one I left had already ended as a benefit for new hires, though it is still in force to this day for those who were already covered. This knowledge made gauging the financial impact of leaving pretty straightforward. Even though financial ramifications are certainly of great import and, likely of great interest to those reading this blog, they are just one piece of the puzzle.

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Unintended Consequences

While cashing in the 401k was probably the most blatantly stupid financial decision, another decision Mr. Frugal Source made for the wrong reasons is in competition for the greatest negative impact on our ability to retire “early”, and possibly eclipses it.

When I was a relative youngster (mid 20s), I found a secure job writing software for a bank. This was the same job I left just before cashing out the 401k. The cash-out notwithstanding, the decision to leave that employer, in it’s own right, hugely impacted our retirement timeline. Why is that? One word. Pension.

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That thing you should never do? Yeah, we did it.

We have made TONS of financial mistakes over the years; so many, in fact, that when we reflect upon our past, it is a miracle that we are free from consumer debt and continue to pay additional principal on our mortgage every month.

Over the next several months we will be sharing our biggest mistakes. We aren’t doing this because we want to beat ourselves up and relive the decisions we wish we could take back, but because we sincerely hope we can help someone else from making the same mistakes.

Neither of us was raised in a family where financial matters were discussed, let alone healthy financial attitudes and strategies encouraged. This is not to lay blame, but to set the stage that we have, for the most part, been figuring this out on our own. In most cases, we failed to seek — and when we did seek, we often did not find — wise counsel. We find ourselves reflecting on our past and say, what if?  It is not helpful, but when we think about retirement, which is creeping up much faster than we would like to admit, it sometimes can’t be avoided.

If you’ve not already “been there and done that” allow us to present our own experiences as cautionary tales.

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We have nothing to show for it

If I was to take a couple of hours and add up all of the money that we have made since we were married all those years ago, I would look at the total and throw up.  Yep, I would literally puke and wonder where in the world did all of that money go?

We have always lived in a decent houses in safe-ish neighborhoods, had clean and mostly decent clothing, and have driven reliable vehicles.  But when you look at the debt we have been in and how long it is taking us to get completely out of debt, I realize we do not have lots of great memories to show for our money woes.

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Why are we here?

Before we start sharing the details of our story, it seems appropriate that we should first introduce ourselves, and give you a little background into who we are and why we started The Frugal Source.

We are a family of six; we’re a mom and dad with 4 teenagers, several rescue pets, and some backyard chickens thrown into the mix just for fun. We live in the Midwest of the United States and are a one income family. There are many reasons for this, and we will explore each in its turn as we share our journey.

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