Why You Need to Start Saving for Retirement NOW! …A Success Story

I recently received this email from an actor who just finished working through the Artist’s Prosperity Home Study System:

Miata,

I just have to write and tell you how excited I am to have found you! I’ve been an actor for five years, struggling along with everyone else, and I finally decided that enough is enough: I need to put together a plan so I can really focus.

All of this time, I thought I had already been focusing on my art, when in reality, I was part-timing everything: my job, my family and my craft. Now, you’ve put me on a path that I don’t think I could have accomplished myself. I have an emergency fund, a separate checking account for my business, and for the first time, real hope for the future. While I have yet to score that elusive “great part,” my auditions are much better. I believe this is because I come in focused and without worrying about “how broke I am.” Sure, I still worry about money, but not in the “OMG, I need this role” desperate way that I have in the past.

Thank you again for what you do. I just wanted to let you know there are people out there who appreciate you very much.

Jessica

It is rewarding when we hear from folks who have started to take control of their financial futures, because the unfortunate truth is that many people simply never will.

I was just reading some statistics from a group called the Employee Benefit Research Institute. While most Abundance Bound readers are self-employed (and not employees of others), we frequently fall into these same traps and the results of their recent retirement survey weren’t encouraging:

Did you know…

  • 46% of workers have less than $10,000 saved for retirement;
  • Of those age 55 and older, 36% have less than $10,000 saved;
  • Only 12% of surveyed workers have saved over $250,000;

It’s so frustrating to read those numbers, isn’t it? But the thing is that we can make sure we aren’t among those groups. As Jessica did, start putting together your emergency fund. Balance your budget. Begin saving money.

More statistics:

  • 53% of workers have never done a calculation to determine how much they need for retirement;
  • 45% of people “guess” at how much money they’ll need

I don’t know if it’s more alarming that 53% haven’t tried to calculate a retirement number, or that 45% of people have guessed, when there are SO MANY tools available.

Believe me, I get how the 53% of people feel. There was a time when I didn’t want to look at any projections because I knew these numbers would only affirm that I was grossly behind. But, as is true with your art, the only way to improve is to understand both your strengths and your weaknesses. By ignoring the numbers, you never give your subconscious mind a chance to improve your own statistics.

Do yourself a favor: figure out NOW how much you’ll need to reach your goals. Then your brain will automatically begin working through ways to meet the goal!

Back to the statistics…

  • 30% of all workers think a retirement balance of $250,000 is adequate for a lifestyle-sustaining income in retirement;
  • Only 14% of 55 and older workers think that number is over $1 million;

Here’s a scary number: $250,000 is the amount the average retiree will spend…on healthcare costs during retirement.  That means you’ll need much, much more than that amount.

Sometimes people don’t think about retirement (especially when we’re young) because it’s a long, long time from now. However, these big numbers mean that we have to do some work now to reach any decent goal in the future.

You probably can’t do everything about retirement that you’d like. You may have other priorities….such as building a business, getting out of debt, buying a house, feeding children….but if you can work to put a little away every month you’ll make that monster task much less “monster-y” J when you reach the time that you WILL be able to meet the entire challenge.

Savers that I know always agree that the key to putting money away is to remove it from your eyesight. If you can successfully find a way to hide your retirement money, you’ll find other methods to meet the demands of today.

We can’t just bury our heads in the sand and assume things will work out.

Make the commitment to yourself to be more like Jessica and start working toward your financial goals right now!

For more information on this report by the EBRI, please visit their website.  They have all sorts of data and research available, but in my opinion, this is their most amazing survey.

 

 

2013-04-05T09:00:50+00:00