It’s funny that we have come to think of retirement savings as a “good job” kind of thing. Saving for retirement really just means having money saved up so you can take care of yourself (and your spouse) when you are old and can no longer work. Because who is going to pay for groceries and things, if you aren’t? You cannot and should not depend on anyone but yourself. Not your kids. Not the government. Saving for retirement means being a financial adult and taking responsibility for yourself. It is of UTMOST importance.
How do I know how much to save?
We don’t want you to accumulate money just for the sake of accumulating money. Money is just a tool that you need to live your life! So think about your lifestyle now, how much that costs each year, and whether you will aim to be spending more or less than that in “retirement” (aka, old age, not super lavish vacation never never land). Then just follow the steps below, and we will take things like inflation and investment return into account for you.
These numbers look impossible..
I feel ya. If you are young, in debt, or just getting started again, this can look impossible. The bad news is, that’s reality. The good news is, better to face it today than yesterday! And did you know that you are a bajillion times (approximately ;)) ahead of most people in the US just because you are now thinking and working on this? Every single dollar counts. This is not an all or nothing kind of game. It’s a steady, save your pennies, live wisely lifestyle. And it is well worth it. Because it feels so good to be able to take care of yourself and your family.
( CLICK TO DOWNLOAD – this calculator is on the third tab)
Disclaimer: All calculators are blank and intended for you to use on your own. All posts in the “Family Finance” series are general posts of an educational nature. None of this represents specific financial advice.