Retirement Lessons from My Sixth Grade Teacher

Having been fortunate enough to stay in contact with one of my favorite math teachers, I am still learning lessons from the teacher who is now also my dear friend.

Doris Oda started her teaching career in 1965 earning $4700 per year, with $200 annual pay increases. After moving away from her family home and into an apartment of her own, Doris found it difficult to balance her income and expenses. Several years passed with Doris spending a little bit more than she earned, and increasing her debt load. However, she was able to pay her bills and pay the credit card companies more than the minimum, each month, so she thought she was managing her financed fairly well. As she approached her thirtieth birthday, Doris decided that she would like to own a home of her own, and she learned that she would need to take control of her debt to be able to secure a mortgage. Armed with a new goal, and a course of action, Doris embarked on a plan to eliminate her debt, and she was able to purchase a condominium unit within two years.

While she was happy to have a place to call her own, it wasn't long before Doris decided that she wanted to live closer to her workplace. Teaching in an upscale school district, Doris was unsure as to whether or not she would be able to purchase a home as a single person, on her modest teaching salary. She began to save her pay raises, and focused on her new objective. Within a few years, Doris had saved enough for a down payment on a small home in a well-established neighborhood, close to school. During the same period, Doris hired a financial adviser to assist her in her retirement planning.

Her financial adviser helped her to focus on her financial future and help her retire early from her teaching career. She was able to retire when she was fifty one years old! Today, Doris is having the time of her life. She exercises, walks her dog, plays bridge, belongs to a tennis club, travels, belongs to a book club and the Lion's Club, and is a Mariners season ticket holder. Doris still works part-time-originally she worked to help defray the cost of her health insurance premiums, but she found that she really enjoys the camaraderie and connection to others.

When I asked Doris to share her tips for financial success, she smiled and offered the following:

1. Never use ATM machines.

2. Don't spend more than you earn.

3. Pay your bills in full, and on time.

4. Be sure that you don't have access to your savings account; think about saving in a credit union.

5. Save, save, save!

6. Hire a financial adviser to help you.

Doris attributes her success to having a great work ethic, putting money away consistently, and having a plan. When she was younger, Doris thought that money meant enjoying luxury items. Today, money means security and having the freedom of doing the things she wants to do, when she wants to do them. I hope you are inspired by my friend Doris, and can find a way to use her lessons to help you find greater freedom and enjoyment in your life.