Downsizing Our Family Home
Retirement Reality – Living for Today While Saving for Tomorrow
By Rachelle (Sue) from Rachelle Place
There are two kinds of people when it comes to retirement: those who live for today and those who save for tomorrow. Me? I have been both.
I did not party through my younger years—I was too busy surviving. Right after high school, my parents gave me a month to move out. “We got you through school, now you’re on your own,” they said. I moved out in less than a day.
I was born in the ’60s, grew up in the ’70s, and came of age in the ’80s. We were not taught anything about money; neither in school nor at home. The only reason I even had a checking account was because of a class project in 10th-grade class of accounting. I started with $10. Would you believe I still have that same account today?
My first real introduction to saving came in the late ’80s when I worked for a bread company. I was part of the Teamsters, and a little bit of each paycheck went into a pension fund. But I would have had to stay there for over 30 years to see any of it. I stayed just under ten.
My financial education really came from my husband, Jim. He is a machinist, and his company offered 401(k). We did not fully understand it back then—some years we put in 6%, some years 11%, and sometimes nothing at all. We had four kids, and later my youngest sister came to live with us after our mom got sick. That made seven of us under one roof.
When Life Hit Hard
We had already owned our house for some time, but when the housing market was booming, we refinanced to take advantage of the equity like everybody else did back then. Then the market crashed and suddenly we owed more than the house was worth. We were sunk in an underwater mortgage.
Around that time, Jim’s job got rid of pensions. No more cost-of-living raises, either. They gave workers a $1.26/hour “raise,” but it didn’t show up in their paychecks it went straight into their 401(k) accounts. The burden of saving for retirement shifted to us completely.
I had just left the bread company, our fourth child had arrived, and my mom’s battle with cancer brought my sister into our care. I was not working at the time, and we couldn’t afford to contribute to 401. Those were gray days but somehow, we got through.
People did not always understand why we could not afford vacations or why we had debt. But we kept going.
The Walmart Chapter
In 1999, our son Kevin wanted to attend Central Michigan University. We took him on one of those “come visit” weekends. He had a wonderful time. Jim and I were sick to our stomachs. It was going to cost $30,000 for the first year—not including food or insurance. But Jim said, “We’re doing this.”
So, I picked up a part-time job at a brand-new Walmart—one of the first in the inner city. That job turned into a full-time career. I stayed for 24 years.
Here is what surprised me: for the first 12 years, I didn’t even realize Walmart was putting money away for me. Jim encouraged me to start contributing my own 6% to get the match. I trusted him. Eventually, I bumped it up to 14%. And honestly? I hardly missed the money.
What I’ve Learned
Every company manages retirement differently.
- My job matched up to 6% of what I contributed.
- Jim’s job did not match, but they contributed a set amount for every hour worked.
There are several ways to build a successful future, although it may be difficult without a defined starting point. Sadly, no one teaches you how.
💬 I’d love to hear from you:
- Does your company help you save?
- Did you have to learn about finances the hard way like we did?
- And don’t you think schools should teach personal finance and budgeting?
Leave a comment below:
Let’s support each other as we figure it out—one step at a time.
