How To Improve My Retirement Chances – How Do I Get Enough Money – Tough Love Personal Finance

How Can I Save For Retirement -

How Can I Get Enough Money To Retire?  What will Improve My Chances To Be Able To Retire?

How can I improve my chances for retirement? You probably will not like the answer to this questions as given here in this article.  The answer is counter to our current consumption oriented culture, but it comes with best of intentions wrapped in tough love.  OlyLife suggests that it may be time for  you reverse the trend of complicating your life and go to a simpler less expensive life style.  Many of us are living in a manner that is hard to sustain now, let alone when there is no income besides social security and what we have put away in savings.  By definition, you cannot save what you are spending, so perhaps it is time to take a fifty percent pay cut.  “What?” you say, “I can barely get by on what I’m making today, How can I take a fifty percent pay cut.?!”  Listen, if you are living on a family income of ten thousand to fifteen thousand, then this would be near impossible, otherwise, you should consider it.  Our country is in terrible shape financially, and much of middle America also has poor balance sheets.  It is time for austerity measures.  Sacrifice now, so that you can have an independent future.

How does taking a pay cut help me get to retirement?

First, when you force yourself to LIVE ON LESS, and state as fact that instead of spending sixty thousand dollars a year, we can only spend thirty thousand dollars, it will help you create the needed changes.  It may mean that you can only afford eight hundred to a thousand dollars on rent, so you may need to downsize should you decide to get serious.  When you build a budget based on one half of your income and you follow it in a dedicated fashion, you will be sacrificing many luxuries that you take for granted today.  You will, however, begin to build wealth from the very first paycheck of implementation.

How does this work?

When you live on half of what you earn, you are living frugally and very responsibly.  The fifty percent of your income that you are not spending should go into savings – period.  The savings should after a few years have a mixture of eight to twelve months of income as cash for emergency fund (build this first, in case you lose your income), next – a ten year horizon investment mixture of stocks and bonds, and finally a longer term retirement fund comprised of well diversified portfolio such as Vanguard’s Total Market Index Fund.  When you do this, it will help you pay off your debts after you have your emergency fund in place if not before.  We say this because you may have had to sell the bigger house or fancier car in order to get to the 50% life-style.

Don’t Worry About The Jones’ Family or Who You Are Not Impressing

Let others think what they may.  When you live in a small place on meager consumption within the means of fifty percent or half of your income, you are giving yourself a big future gift.  When you do spend a little on a treat or a vacation, you will appreciate it a whole lot more as you no longer are living with the attitude – easy come, easy go.  Think back to the money you have wasted in the past – don’t you wish it was sitting in savings right now?  Your future dollars can be in your bank if you make it happen.

It Is Easier To Live On Half Of Your Income Than It Is To Increase Your Income By Fifty Percent or More

If your family is earning a hundred thousand dollars but spending every dime, OlyLife thinks that it may be easier for you to move to living on fifty thousand dollars a year within twelve to eighteen months, than it would be for you to increase to one hundred and fifty thousand dollars in salary within the same time frame or longer.  Now, if you can do both, then you really win big time!  As promised the answer to our original question is not an easy one, but if you meet with your financial expert and they agree with you that it is time to implement this type of tough plan, you will likely be in much better shape in just a few years.  So, stop spending, live on half and you will likely have a better chance for a comfortable retirement as you make the most of your one and only life – That’s OlyLife!

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