Hit the savings ceiling

Posted by on October 17th, 2017

There’s a looming retirement savings crisis affecting the country! Or is there?

The perception is certainly real.

According to a survey by the Insured Retirement Institute (IRI), only 22 percent of 2017 Baby Boomers feel adequately prepared for retirement,

Mathematically speaking, saving the highest possible amount from the earliest point in your life increases your savings potential through the value of compound interest.

But no matter what your age, a holistic financial plan – putting money aside consistently and automatically – can restore confidence and build savings for those post-working years.

It’s no time to panic. It’s time to change your thinking about savings.

Start with the simplest things: One of the hardest things about saving money is getting started.

Record your expenses to help break down where you might be able to bank extra money. Focus on using your dollars in the way most likely to make you happy. Buyer’s remorse is a product of buying something extra it turns out you never really needed it at all.

Invest wisely. Most analysts still recommend the “forced savings” concept behind buying a home, slowly and steadily building wealth in the form of home equity, which can be a source of income during retirement.

If your employer offers a 401K or similar savings plans, make sure you up your payday contributions to the maximum. Any unexpected windfalls you receive, such as bonus checks or gifts, should go directly into savings.

Get motivated with these examples from super-rich celebrities. Billionaire financier Warren Buffett enjoys the same $3.17 breakfast at McDonald’s every morning. Superstar singer Carrie Underwood clips coupons. Facebook founder Mark Zuckerberg drives a late model Acura – not a Rolls.

Simply put: To save money, live below your means, not at or beyond them.

Whether earning $50,000 a year or $500,000, when people make more, they almost always end up spending more.

The National Retirement Planning Coalition and the IRI have collected the latest resources to help consumers at www.retireonyourterms.org.