I wrote this essay for another site. I wrote about how some people approach life one way, and other people approach life a different way.
I think the lessons apply for those who are recovery. As you are reading this, instead of asking “how much money do I need in retirement?”, maybe ask “how hard do I have to work at my recovery?”
With Love,
The Recovering Urchin
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I read a fable when I was young called The Ant and The Grasshopper. In the fable, the ants worked and saved every day, and the grasshoppers played and enjoyed their time in the sun. The grasshoppers teased the ants, because the grasshoppers were having a lot of fun in the sun.
The ants kept storing food, and the grasshoppers told the ants “don’t worry-there is enough!”
Until winter came.
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I am an ant. I work and I save, and I plan for winter.
But I watch the grasshoppers, and it looks like they are having fun.
In the interest of full disclosure, I should mention that I am having an affair with a lady who works for our local financial services firm. This firm was founded by some super-ants. She is a super-ant. She has worked for this company for about 15 years. So we save a lot.
But I struggle with “how much do we need to save, and how much is enough?” Some days I want to be a grasshopper and purchase a Porsche, and other days I want to be a super-ant and find pennies in the sofa and rush them to the bank.
How much is enough?
—–
I have read that 50% of all Americans have saved nothing for retirement.
How much do we need for retirement? That is an ant question. There are a lot of ways to answer it, so I will share one way.
One calculation is to take your current annual spending, and multiply it by 20. That is an estimate the amount of savings that can last all of your retirement. That allows an approximate 3-4% withdrawal every year, forever, assuming that your investments gain 3-4% a year.
For example, if your annual spending is $100,000, then you need $100,000 x 20, or $2,000,000, saved for retirement. If you withdraw 4% of that a year, you withdraw $80,000. Hopefully Social Security fills in the rest.
But 50% of Americans have nothing saved.
What happens to the grasshoppers when winter comes?
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A generation ago, companies provided pension plans to their employees. An employee who worked his/her entire life at a company could retire with a pension that provided for a reasonable retirement.
But about 25 years ago, companies started eliminating pensions (called defined benefit plans), and started moving towards employee-funded programs, like 401ks (called defined contribution plans). Defined contribution plans require employees to take charge of their own savings.
That approach works well for ants. It doesn’t work well for grasshoppers. It also doesn’t work well for people who don’t make enough to save 10% or more of their annual income.
—–
How much is enough?
I have met people who have lived in refugee camps. I know a couple of people who have been homeless, one of them for over a year. Some of my relatives lived through the Great Depression. Some friends have been in war zones.
These are people who did not have much. But they don’t seem to struggle with the concept of “not enough” in their lives. But I do.
I was getting a haircut on Wednesday night, and the woman cutting my hair said “God will provide”.
Really? What about for my friends who were homeless? What about for the people in refugee camps? None of them chose to be there, and some of them were really smart, really hard working people, who were caught up in circumstances.
What about “God helps those who help themselves”.
Maybe. Let me think about it.
—–
I drive 120 miles roundtrip every day for work. I don’t recommend it, but I have a great gig, which happens to be in Princeton. So I drive.
There aren’t many gas stations on my route. The middle 50 miles has no gas stations at all. So I have to be conscious of how much gas I have left.
How much is enough?
About twice a year, there is a “mother of all traffic jams” on my commute. A truck overturns, spilling its contents on the road. Or there is an accident with a fuel spill and a car fire.
Whatever the cause, a couple of times a year, my ride turns into an adventure. And “how much gas do I have” becomes an issue.
During one of these traffic jams, I spent 4 hours in the car. I saw several people who ran out of gas, pushing their cars to the side of the road.
So I make it a practice to always have at least 180 miles of gas in the car in the morning for my 120 mile commute.
Theresa took my car out last night, and left it with 175 miles of gas.
So I stopped at the gas station this morning. Because I don’t want to run out of gas on the Pennsylvania Turnpike during the mother of all traffic jams.
With love,
The Recovering Urchin
P.S. Do you like The Recovering Urchin? Let me know at therecoveringurchin@gmail.com. Please tell your friends, and remember to sign up for my e-mail list so that I can deliver this content straight to your inbox.
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April 2019
- Apr 5, 2019 I Think My Spouse Has A Drinking Problem Apr 5, 2019
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December 2018
- Dec 13, 2018 The Ant and the Grasshopper Dec 13, 2018
- Dec 3, 2018 Where I Go For Hope Dec 3, 2018
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November 2018
- Nov 23, 2018 This I Believe Nov 23, 2018
- Nov 12, 2018 Guest post: Grace, compassion and the stink of the soul -- part one Nov 12, 2018
- Nov 7, 2018 The Importance of Home Groups Nov 7, 2018
- Nov 5, 2018 The Law of Averages Nov 5, 2018
- Nov 1, 2018 Guest post: A List Of Stupid Things That Mess Up Recovery Nov 1, 2018
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October 2018
- Oct 29, 2018 Guest post: Grace within Oct 29, 2018
- Oct 28, 2018 Guest post: My ugly, unvarnished truth Oct 28, 2018
- Oct 27, 2018 Staying Sober in Dark Times Oct 27, 2018
- Oct 24, 2018 I Am Responsible Oct 24, 2018
- Oct 23, 2018 The Opioid Epidemic Oct 23, 2018
- Oct 21, 2018 The Challenge of Being an Introvert in Alcoholics Anonymous Oct 21, 2018
- Oct 20, 2018 Physical Pain And Spiritual Pain Oct 20, 2018
- Oct 18, 2018 My 38th Street Bridge Blackout Oct 18, 2018
- Oct 10, 2018 Who are you? Oct 10, 2018
- Oct 9, 2018 Guest post: Zen Spot #155 — Mindfulness, meditation and letting sleeping dogs lie Oct 9, 2018
- Oct 8, 2018 The Taping Pit Oct 8, 2018
- Oct 7, 2018 The Lou Gehrig of Recovery Oct 7, 2018
- Oct 6, 2018 Guest post: Zen Spot #161 — Mindfulness, meditation, the Beastie Boys, potato salad, the number 12 and a phone call from a Buddhist monk Oct 6, 2018
- Oct 6, 2018 The Cathedral of Chartres Oct 6, 2018
- Oct 5, 2018 Guest post: Addiction and spirituality Oct 5, 2018
- Oct 4, 2018 Meetings When I Travel Oct 4, 2018
- Oct 3, 2018 Why Discipline Matters Oct 3, 2018
- Oct 2, 2018 Meditations on Anonymity Oct 2, 2018
- Oct 1, 2018 Guest post: Zen Spot #36 — Mindfulness, meditation, autopilot and the internal gyroscope Oct 1, 2018
- Oct 1, 2018 This Is Our Plague Oct 1, 2018
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September 2018
- Sep 29, 2018 Guest post: Zen Spot #143— Mindfulness, meditation and the intersection of Broad and Vine Sep 29, 2018
- Sep 29, 2018 Seven Things My Sponsor Suggested Sep 29, 2018
- Sep 27, 2018 Guest post: The Opioid Crisis—Personal Responsibility, Choice, and the Law Sep 27, 2018
- Sep 24, 2018 Page 87 Sep 24, 2018
- Sep 20, 2018 Humility Sep 20, 2018
- Sep 17, 2018 Honesty Sep 17, 2018
- Sep 10, 2018 The Purity of the Message Sep 10, 2018
- Sep 3, 2018 Recovery Resources Sep 3, 2018
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August 2018
- Aug 28, 2018 What’s The Problem?! Aug 28, 2018
- Aug 17, 2018 Roll Call Aug 17, 2018
- Aug 17, 2018 I Don’t Know Aug 17, 2018
- Aug 17, 2018 I Need Help Aug 17, 2018
- Aug 17, 2018 I Was Wrong Aug 17, 2018
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July 2018
- Jul 8, 2018 Welcome to The Recovering Urchin! Jul 8, 2018
- Jul 8, 2018 The Most Important Thing Jul 8, 2018
- Jul 7, 2018 Role Models Jul 7, 2018