If You Fail To Plan For Retirement, Then You Plan To Fail
While reading The Total Money Makeover by Dave Ramsey, I came across a great point in one of the sections that has myths and truths. The myth is that “everything will be fine when I retire. I know I’m not saving yet, but it will be okay.” Mr. Ramsey goes on to say that the truth is “the Cavalry isn’t coming.”
“The Total Money Makeover” by Dave Ramsey — not affiliated with Sunwest Trust in any way, but a good read.
Mr. Ramsey makes an excellent point. Americans are not taking their retirement seriously.
A CNN article by Blake Ellis states that 49% of Americans are not saving anything AT ALL for retirement. The article goes on to say that as many as 56% of Americans ages 18 to 34 are not putting money away into a 401k or an IRA.
Nearly half of Americans say that they are not contributing to a retirement plan because they can’t afford to, but in my opinion, you CAN’T AFFORD NOT TO.
If You Don’t Have A Plan For Your Money, Then Your Money Will Make Plans For You
I’ve always found that money not saved is somehow just wasted. My wife and I began working out more at home, which saves $190 a month on the expense of gym membership. We also cut off our cable TV saving us about $160 a month.
It’s easy to conclude I should have an extra $350 in my pocket when the end of the month comes, but I don’t. The money gets spent elsewhere if we don’t have a plan to save the money.
By the same token, whenever I have raised my monthly contributions to my IRA, I haven’t noticed my wallet taking a big hit either.
Having a little less money in my checking account may mean my wife and I don’t get to go out to eat for dinner every Friday night, but as Mr. Ramsey writes in his book “This is the real world where sad old people eat Alpo!”
I don’t know about you, but I’d rather miss out on a couple of nights out now rather than have any choices in our Golden years.
“The Total Money Makeover” by Dave Ramsey — not affiliated with Sunwest Trust in any way, but the book is a good read.