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New Book Tells How to Live Cheaper, Retire Early
Second book by author Fred Brock on retirement tips
Jan. 10, 2005 An educator says he has found the
way to retire early live cheaper. And, Fred Brock says in promoting
his news book, Live Well on Less Than You Think, he has five tips on
how to live cheaper.
The assistant professor of journalism and mass
communications, has published his second book, "Live Well on Less Than
You Think: The New York Times Guide to Achieving Your Financial
Freedom," which offers readers a way to make their lives richer without
giving up much.
Brock's new book is a prequel to his first book
"Retire on Less Than You Think: The New York Times Guide to Planning
Your Financial Future."
"As I wrote the first book, it became clear that
there are people in their 30s, 40s and early 50s who are looking to
retire but are having trouble putting money aside," Brock said. "With
the second book, I show that if you really put your mind to it, you can
live on a lot less money while saving to defend your future."
"We are a consumer driven society and are urged on
every front to spend money," Brock said. "That's fine until you spend
too much. The fact is, we can easily and comfortably live a lot cheaper
than we think."
Brock offers five ways for people to live on less
money while still getting what they want:
1. Save on the small things. People can save on
items such as soft drinks and lunches by bringing them from home rather
than buying them every day.
"If you buy a can of soda from a machine, it is
going to cost about a dollar. If you do this twice every work day, that
is $10 a week, $40 a month and $480 a year," Brock said. "Or you could
go to any discount store and buy a case of soda for about $6, which is
25 cents a can. If you take this $30 you are saving and invest it at 6
percent and compound it over 30 years, you would have an excess of
$30,000- and you haven't given up any sodas!"
2. Be smart about how you spend your education
dollars. People often believe that prestigious private universities
offer better educations and thus higher future earnings. However, Brock
says there is at least one study - by a Princeton economist - showing an
inverse relationship between prestigious schools and future earning
power.
"Don't be obsessed about college," Brock said.
"Parents should realize that it is better for their child to be in debt
than for them to do so, especially if it affects their retirement."
3. Prioritize your insurance. Brock recommends that
people purchase insurance to protect what they already have. People
should first have health insurance, then property and casualty; after
that they need to make choices.
"People spend too much on the wrong kinds of
insurance," Brock said. "Some will take out huge life insurance
policies, but have no health insurance or disability insurance to
protect their incomes. And people are three times as likely to be
disabled than to die during their working years."
4. Be aware of credit card debt. Credit cards can
lead to trouble when balances build. Brock said people should try not to
charge anything until their balances have been paid and, if they cannot
pay the balances, take advantage of low-interest promotions.
"If you play the credit card game, then play it to
your advantage," Brock said.
5. Be wise about where you live. Although few
people have a choice in where they live, comparing costs of living can
save thousands of dollars. When people are looking at where they want to
live, they should consider how much it is going to cost to live in the
area compared to how much they will be earning.
Brock holds the R.M. Seaton Professional Journalism
Chair at K-State's A.Q. Miller School of Journalism and Mass
Communications. Prior to K-State, Brock worked as a business editor and
columnist for The New York Times. While in Manhattan, he continues to be
a contributor to The New York Times.
Brock has also worked as an editor and reporter for
The Wall Street Journal, The Houston Chronicle and The Louisville
Courier-Journal. He has taught undergraduate reporting and editing at
New York University and has been a fellow at the Washington Journalism
Center. Brock earned his bachelor's degree in English literature from
Hanover College in Indiana, and his master's in education from Temple
University in Philadelphia.
Both books are published by Henry Holt, Times
Books.
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