In a recent Michelle Singletary column, the personal finance writer hooked the reader with this shocking headline, ‘To be a millionaire and still feel broke.” She also convinced me it wasn’t bizarre after all for people to worry about outliving their money, even when they had a million or more dollars socked away. With life expectancies on the rise, and unforeseen medical costs often a companion to old age, Singletary touts the benefits of working as long as you can, and paying off your debt and getting on a budget before you retire.
Contrast the above mentioned millionaire to the average American who, according to a GoBankingRates.com survey, has $14,000 or less saved for retirement. About 14 percent of those surveyed say they haven’t saved anything for when their working years end.
Who remembers Alfred E. Neuman and Mad? What me, worry?
So here, in no particular order, are five ways to stop worrying about money and to start saving more.
- Never again spend a five dollar bill. Vow now to use more cash in your daily transactions and save every $5 bill you get back in change. You’ll be surprised how fast the next egg grows. I’ve been doing this for more than 13 years and have saved just over $40,000, in fives.
- Pay off your debt. Nothing sucks the energy out of our financial security more than debt. Money that you owe someone else is money you can’t save for yourself.
- Join your company savings and retirement plan if you have one on the first day you are eligible. Nothing beats building a nest egg faster than starting to save early in your career.
- Live within your means. This doesn’t mean you can never indulge your fantasies because self extravagance has its own reward. But if you spend money you don’t have or buy something you don’t need, the chances of you adding to your savings go down.
- Turn a hobby into a revenue stream. Like to drive? Ubber part-time and save what you earn. Love food? Pick up a few shifts as a food server and sock away the tips. Years from now, when you’re ready to retire from your full time job, keep the part-time gig going as well as your income stream.
Finally, for those who want more, here’s a link to the Singletary column I referenced. https://www.bostonglobe.com/business/2018/04/20/this-how-feels-millionaire-and-still-feel-broke/JpEDNsvVjzsKXEZ0eEnLNP/story.html
Yours in Fives,