Planning for one’s retirement is an increasingly vital preparation for people to make. With Social Security funds waning as more and more of the workforce heads towards retirement, the time to set up one’s own plans for retirement is right now.
A study conducted in 2012 found that almost half of the American citizenry is not planning for retirement through saving for retirement. For those American workers under the age of thirty four, the percentage of individuals who are not starting to save for their retirement is over half.
These statistics show that nearly one out of every two Americans has no concrete plans for retirement, or are otherwise failing to accomplish any plans they may have established in the past. Without starting to save money for retirement right now, almost half of the American workforce is deciding to make retirement more difficult for themselves.
Without saving money long before the goal retirement age, a person can practically guarantee themselves employment after retirement. For these reason, saving money early in life and throughout one’s career is a fundamental element in a solid retirement plan.
So, why does almost half of the American work force refuse to start saving money for their retirement now? Most people, when asked this very question, have stated that they are not yet saving for retirement because they do not believe they can afford it.
But the ability to save money for retirement is just that, a belief in one’s self that they can make the choice to save if they so desire. The real issue at the core of the inability to begin saving for retirement is not the amount of income that a person or family makes, it is instead they believe that whatever the income amount is that it is not enough to live on.
Or in other words, the root problem for the nearly fifty percent of Americans who are not saving for retirement is not that they have a low income, but that they do not know how to manage that income and still be able to save a portion of their income every month. Thus, in order to start planning for retirement effectively by taking steps to save money now for retirement in the future, an individual or family will need to understand and implement proper money management.
Choose to Start Saving Now!
The first way that an individual or family can begin to save a portion of their monthly income is by simply choosing to do so. It may sound over simplistic or perhaps even impossible because of the monthly bills and debt, but by simply choosing to save a portion of their monthly income, a family will be able to begin doing so.
One can choose to save money every month by making saving a habit. One can make saving a habit by deciding that no matter what, some portion of the month’s income will be put away into a savings account or otherwise preserved for future use.
By choosing to save a little each month, the action of saving some money every paycheck or every month will become an automatic, and richly rewarding, habit. But some may gawk at the thought of reserving money every month simply because they do not see how they can live without that portion.
This cycle of needing to spend every cent of one’s income to pay for the various necessities of life is called living paycheck to paycheck. While many are stuck in this cycle, it can be broken in time after these individuals choose to make saving and budgeting a part of their fiscal lives.
Free Up Money by Budgeting Now
Budgeting is a common topic of discussion among financial advisors because of the effectiveness that a strict and adhered to budget can have on the financial success of individuals and families. Creating a budget for one’s family is a relatively easy task to undertake but can be a difficult task to accomplish.
The difficulty in implementing an effective budget comes because of a lack of discipline to limit spending to the assigned goals one has set for each category of expense. Another factor that can inhibit the realization of a set budget is the unexpected expense.
Even when people and families stick to their budget and remain disciplined, unexpected expenses can rob a family of their hard earned savings. To avoid this, a family may wish to build up their savings with an emergency fund built in that can be specifically used for such unexpected expenses.
Auto Title Loans For Unexpected Expenses
Another way for a family to deal with unexpected expenses is by using their available assets to handle the expense. For example, an auto title loan on the family car can be taken out to cover costs of unexpected or emergency expenses and subsequently paid off on the next payday.
Saving for retirement is one of the most import plans a person can make for the benefit of their future. Building up savings through deciding to save on every paycheck and budgeting wisely will enable an individual or family to save for their retirement.