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Saving in 2008
By Daphne | January 2, 2008
According to the Society of Actuaries’ 2007 Risks and Process Retirement Survey, roughly half to 60% of retirees worry about three things: the cost of health care, the effect of inflation on their nest eggs and not being able to maintain a reasonable standard of living for the rest of their life. Marketwatch
Make 2008 the year you bump up your savings. Now is the time to reassess your needs and see where you can pare down. This is not to say that you want to get rid of all of the fun in your life but see what things you can cut out or wait to purchase.
Enjoy life. If you have money but don’t save, this would be the time to start saving something so that you won’t have to work during retirement if you don’t have to. There are few people who are saving or investing half of their salaries but if you save 15% of your salary you will have a larger nest egg later.
What is your reasonable standard of living?One person’s standard of living and another’s may not match but you should be able to realize what is important of what you want to do or like to do. A person who wants to travel the world through their golden years may need more money than a person who wants to just travel domestically. Or if you like to eat out at a nice restaurant once a month then you need to plan for that.
Either way what you want to do in your future depends on what you do today. Adequately fund your savings first, then you can still enjoy your life now and live below your means.
Topics: January 2008 |