Say the word “shoes” and without hesitation a smile appears on my face. In countless surveys, when women are asked if they would rather buy shoes or save for retirement, more than half will opt for fashion. G-u-i-l-t-y! Hold on there men; you are more likely to put your dollars towards tech gadgets versus your retirement savings.
There are a variety of reasons (or excuses) many of us don’t put away enough money for our retirement. Focusing on our current expenses and what is best for us today takes precedence over what lies in the future. Short-term savings goals are faster and easier to achieve. What motivating factors about present spending and short term saving will get us excited about saving for retirement?
One of the best ways to ensure financial fitness success for the future is to set up a retirement savings account such as a 401K plan or Individual Retirement Account (IRA). Give yourself a pat on the back if you have one or both!
Setting up automatic amounts to be saved from your paycheck or transferred from another account allows you to contribute to your savings and not really need to think about it. I challenge you to seek out a way or ways to sweeten the retirement pot and have some fun with saving.
#1 — The amount you spend on a splurge item is matched and put into your retirement account. Example: A fantastic pair of hot pink peep-toe pumps are calling my name so I breakdown and spend $50. I, in turn, contribute an additional $50 to my IRA.
#2 — Use the amount you set side for retirement as the budget for your splurge purchases. Oh, this is a win/win because the more you save, the bigger that splurge budget gets. Woohoo! So, if I put $100 in my 401K then I allow myself $100 to spend on a new high-tech pair of running shoes.
Yes I have tried the exercises and, well, I will have plenty of fantastic shoes waiting for me when I retire.