I recently read a statistic that states 82% of the population are concerned they won’t have enough money for retirement. This is a legit concern and one I think many of us worry about. It is our future. With economic weirdness, wars firing up everywhere and investment professionals with different idea on what to do with our money, there is more confusion everyday. With that said, I like to stay the course with the belief that history will continue to repeat itself and give us the returns we plan for which will take care of retirement if we do it right.
Scared by Nick Youngson CC BY-SA 3.0 Pix4free
The Question Relies on Us Then
Are you putting a certain amount of your pay check (I like a min. of 15%) away every month for your retirement? Are you on a budget and spending less than you make? Do you have a rainy day fund to cover any unexpected expenses that will come your way?
I was recently in a conversation with a man who is in his late 40’s and he has the same concerns about retiring. He is not sure if he will be able to retire at all. I could see the fear in his eyes and the doubt he had around himself, and I know the feeling first hand.
What I told him was to get his money straight and to ensure he is taking the correct steps to get out of BS debt, spend less than he is making, and save for future investments. I also told him to not pay attention to all of the media and the get rich quick schemes that are floating around on a daily basis. The good part is that this discussion happened after a financial class he is taking and learning the very basics of tracking his spending and creating a plan for his money every single month.
I believe he is on the right path and I assured him of that. Up until this point in his life he never knew where his money went. All he knew is that he had enough to put food on the table and buy the things he wanted. With his new training, I can bet he will be saving and investing more money than he ever thought he could.
It is Time to Take Control
Another stat that freaked me out is, the average American savings account only has $3800.00 in it. With this stat, there is no wonder why people are nervous about retirement. People are not doing what they need to with their money. One car break down, one furnace blow out, or one diagnoses will leave most of these people broke. It is time to own this SH!T and take control of our lives and our money.
What you can Do to take control?
Start Tracking your Expenses Every Month
The only way to really figure out where your money goes is to start tracking your expenses. People make this way harder than it actually is, but it is the only way to rid yourself of the fear. Take out a note pad and start recording today.
Spend Less than you Make
It is the number one rule of all financial people you talk to. You will never get ahead and be able to invest in your future until you spend less than you make.
Set Up an Emergency Fund
An emergency fund of three to six months of your expenses will protect you when Murphy comes in and tries to knock you down. If you don’t have an emergency fund, get one going today!
Pay off your credit cards and never use them again.
Credit Card debt is the easiest way to get yourself in trouble. I am not talking to the folks here who use credit cards for points and crap like that and pay off their credit card every month. I am talking about those who use credit cards to buy stuff they can’t actually pay for. This is a sure way to get yourself into trouble. Cut those things up and never use them again.
Start Saving Every Penny
Once you know where your money goes and plan what it will go to every month, there will be months where money is left over. Start a simple savings account and save that cash. You can worry about investing and where to put it once you have your spending under control and a pile of cash waiting there in your savings account. This is actually the fun part about owning your finances.
It’s Never Too Late to Start
No matter where you are in your financial journey, there is no better time than NOW to better yourself. Learn where you money goes, save as much as you can, and take a deep look at yourself in the mirror and ask yourself if you are spending your money in the correct spots. If not, Start now to ensure you will have the best future ahead.
If you feel like you are behind and not sure where to start, hit me up and I will get you on the right track.
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