I am 36 years old. I am married and have 4 children. I went to college, but had my oldest child while I was in school. I have been a stay at home mom ever since. My youngest just turned 5, and I am thinking once he starts full time school I will look into full time work. I have worked at a part time job a few a times over the years. My husband works full time. He has money set aside for retirement through his job. Our expenses are equal to our income. There is never a time when we have extra money. I have no savings, he has no savings. Our kids have no savings for college. We are middle class. We don't get any help from anyone, and we're happy about that. However, all of our money is used. We budget. We scrimp. I'm Thrifty. I coupon. But retirement scares me. What if we have nothing?
While i can definitely understand that fear, i would have to say that you ain't in that many problems. The important thing is never to be in debt, that is the biggest mistake you can commit, because the time passes and it just gets worse and it's always something you will have to pay. Still, you are young, if i were you, i wouldn't worry so much about retirement, because there is still a lot of space for things to change.
There's no point in worrying about the future Treighsie because it will only get you negative health effects. Best thing to do is take some course [like web design] that will enable you in the near future once you've learned enough to actually start your own web design business or go the freelance way. I'm sure with some 'tech' skills you can work from home after you retire and if the business goes well you can lean back, relax and outsource the work. All you need is persistence and the driving desire to learn something new. All the best!
I would honestly recommend to just find a day during the week, only one day where you can work a simple job and put aside something like 20 dollars each week and from then on you can start saving. It all really adds up and you will be able to see that sum in just one year.
It's such a common concern. But you know the future is there,, you know what sort of needs you will have for survival and dwelling on it in any way will not change any of it. All you can do is focus on today and if you find a way to change your path onto one that will hopefully make that future easier, then great! If not, worrying won't change it. You can always create a new path. Try new things, get yourself out there.. take some risks. The one thing we don't have is the ability to see the future. We're lucky enough to have some foresight though and with that, the ability to make change and create that future. I know it's not always possible.. but it's definitely not possible without change. Even small changes make a big difference and I'm not talking financially.. life changes; even small things. Focusing on the now is the best thing you can do for your future.
Then that's your first step and the most important. Today is all you have. You can try to see the future and plan for it, but it isn't real until you're experiencing it. Make today good for you and hopefully it will lead you to a better future. Today is all we have.. don't miss it while worrying about tomorrow
Obviously you will have to get a job. Whether it's a full time one or something that you do part time, for example one or two nights a week or something during the weekend. Either that or spending less, it's always possible to spend less. And then when you've done one of the above, you will have money that you can put aside. Probably not much, especially in the saving more scenario, but it's a start. You're still young, even $20 a month will eventually grow into something larger.
There's a great set of books by David Bach. One of my favorites is "Start Late Finish Rich." He has several along this line. He gets a lot of flack because he coined the phrase "the latte factor." Anyway, he recommends start a small business on the side. Not only will most of that income be devoted to your retirement, but you will get a ton of writes off being a business owner.
While everyone's post here is helpful, I'd have to disagree with the people who said that she should not worry about her future and take it on a day-to-day basis instead. Look, retiring with nothing to your name is very scary. And it would be wise if you try to act NOW rather than wait till your older because by that time, your margin for error would be way lesser. I would also assume that you live in the US where most old couples usually experience a hard time when they retire because they have no money to fall back on. I'm sure that you wouldn't wanna experience that, am I correct? Don't worry though since you still have time to create your own money nest and I'm going to help you by giving you some advice on what course of action should you take. First things first. You told us that you don't have any debt which is great because you won't waste any of your precious years on paying them off. What you should do is to make a review about your lifestyle. How do you spend money? Do you have any vices? Where could you cut expenses? Are your children's tuition too much? These are just some of the questions that you should ask yourself. See to it that you make a list of everything that you can cut just to increase the amount of money that you can save each month. Listen, there's always something that you can cut off from your monthly expenses. Find them, and cut 'em. After that, talk with your husband and kids. Sit around your dinner table and explain to them your situation. To be honest, there's no point in hiding this from them. Tell them that you need to cut down on your expenses and that no more eating at the fast food chain, or cable television from now on. Your children will understand, trust me. If possible, try to transfer your kids on another school. There's no harm in transferring them to a public school as long as you train them to become great human beings at home. Train your kids to become responsible and ask them for their help and cooperation. You can't do this thing alone, and your family are there to help you. If you have anymore questions, just post em' here. I'll try to help you in any way I can. I've been studying finance by the way.
I was wondering if it is a good idea to cash in our life insurance when we reach a certain age? I have been discussing this with my husband and he seems to think Christ will come back before then! I wonder what if He doesn't? Is this a good idea?
I really like your post. Very genuine, you see, in my opinion, you are still a very young person, I'm in Law school and I'm barely 22, with that said, I have a few classmates, who are in the age group 35-45,so...you see, people at all different ages and stages are doing things regardless of what "barriers" they think exist, I say, you should definitely look into working full time, that means more money, I would also urge you to look to a profession that you can still do, even after retiring! there are many of them; Nursing is one such job-and it's always on demand! In my opinion, you have lots of years left before you even have to think about retirement, you have all of your 40's and 50's, so take your time, but act now, you'll be alright, all the best!
The good thing is that you have time to change things! It really is unfortunate that the middle class gets no breaks. Sometimes I feel as though I should have forgone college and never started working. It's hard when people who have never worked a day in their lives, and are living off benefits, live better than those who work hard. I would advise to start small. Even if you can only put $10 a week into a retirement account, it will add up in the end. After a year you will have $560 stashed away, and if you continue it will add up in the long run. If you open an IRA or Roth IRA, the money will earn interest (compound interest is the best kind in the world), and you'll have more than you put into the account in the future.
It is never too late for you. I started saving for my retirement at the age of 38 and I started small. I almost have the same responsibility like yours and what I did, I invested time to learn about personal finance and what I found out was able to help me. It is called the CD-RW personal finance scheme. Here's how it works: C- Cash Flow management Monitor your cash flow. Make budget. Live within your means. Make sure you save some part of your income and live within what's left. Make adjustments on your lifestyle. Identify the NEEDS and think twice before buying your WANTS that you can live without. D - Debt management You must limit your debt within 35% ratio of your combined income (you and your husband). If you have debt, try to pay the one with the higher interest. Avoid getting new loans if you can. Limit the use of your credit card. R - risks management Now, if you have enough cash and less debt and probably may now have some extra income, invest in life insurance that is linked to an investment. As you get old, your primary worry would be the future of your children, so having a life insurance will protect you and them in case whatever happens to you. If you have survived the insurance up to its maturity, you can cash in the investment part which you can spend as your retirement fund. The insurance remains. and probably, your children has reached their adult age and can provide for themselves. W - wealth management If you more cash at your disposal after having paid all the premium of your insurance, you can invest some of it in a mutual fund or buy shares of stocks so your money will be the one working for you brining you passive income while enjoying your old age. at least your business and money are working for you. Do not fear old age. Retire gracefully. Life is there to enjoy. Just learn how to live it easily.
