Everyone is telling us social security is running out…and the stocks are falling….and there’s a recession…and the job market is down…..and….we get it… our generation is used to bad news. But the question remains, what are we going to do about it and how can we begin to prepare for retirement, even though it seems like a long ways away? So here’s the challenge…can you save a million dollars???
SAVE A MILLION
If you are 25 – awesome – open a savings account RIGHT NOW – and make it a goal to save $300 a month. Just put it away and don’t touch it. Keep up that habit and you’ll have a million by age 65! If you are 35 – your goal amount climbs is $670 a month…
If you are younger than 25 and reading this, congratulations! You have a head start, so begin stashing away retirement funds in a savings account monthly…start with $50-$100, and increase by $20 every year or so. I recommend savings accounts like online bank ING….no fees, no nonsense. I use them and love them – you should check them out and start saving!
HOW TO START SAVING $300 A MONTH…
Can you switch up your health insurance plan? For the young 20 somethings (unless you’re having kids or have health issues) most folks don’t need the expensive HMO….you can save over 100 bucks a month
AVERAGE SAVED/month: $100.00
As the weather gets nicer by the day, park that car and bike it or walk to work! Gas is climbing higher than ever before and you need that extra exercise anyway! By biking or walking for a week (depending on your commute) you can save around $20-$80/week on gas alone. Or sell your car and then you don’t have to worry about car insurance as well!
AVERAGE SAVED/month: $50.00
GIVE UP COFFEE SHOPS
You may be grumpy for a couple days, but just try it….as a self-professed coffee (Starbucks) addict myself, I have given it up for a whole week and survived! AND saved around $15/week. Multiply that by 4 weeks and that’s $60.00 saved!
AVERAGE SAVED/month: $40.00
TAKE ON A BABYSITTING JOB
Or dog-walking/running or just an extra odd job! Just earning $40 a week can really add up. Put that in your account…and save it!
AVERAGE SAVED/month (4 odd jobs/$40 each): $160.00
For more ideas on saving towards your goal go here….Smarteys.com Advice Blog