Budgeting is such a drag. There are some wonderful outcomes for those of us who do prepare for our future. New Years is approaching and looking over our financials, I realize having a budget is definately effective. I wanted to share a few tips that might help with your financial goals for the upcoming year.
Start the year off with a monthly budget breakdown. This will allow you to physically see your debt and areas that may need improving or just need a little extra attention.
Retirement estimate calculations are boring but a must. Financial planners suggest you save 10% – 15% of your monthly salary for your retirement, starting in your 20’s. Most American will live an average of 25 years once retired. This is all hypothetical but I would suggest doing your homework so you can set a personal target goal.
For an example, if your average income is $55,000 a year and you save 15% starting at age 35, in 2034 at age 55, you would only have $412,000. If you calculate in the inflation rate you will need 1.6 million to survive until you are 92. You would be falling short and by a lot. To reach the goal of 1.6 million starting at age 35, you would need to save 25% of a 55,000 salary a year to meet that goal. That is like saving $14,000 a year until you were 55 years of age.
All of these numbers are certainly scary and will definately make you think when you are in-line at Starbucks spending $4.75 on coffee. Looking into our future will help us prepare so we must consider the what the future holds and be concerned about our childrens future and what legacy we will be leaving behind for them to carry on.
Just a little food for thought. Check out my New Year tips for getting yourself on track. Who wants to be working at 70, not me. I want to be vacationing with my husband and visiting with my children. You?
Katie Girl
