We’ve all heard stories of people spending their entire life saving for retirement only to die before the big day or a short time after. That hurts!
To think that someone ate beans and rice, didn’t go on vacations, passed on family trips, and skipped the concert of their dreams in hopes of enjoying the good life when they turn 67, only to see tragedy wipe those goals away – that would make anyone want to forget retirement and live life to its fullest TODAY!
Well, it doesn’t have to be that way. Everyone’s date with destiny WILL come. We just don’t know how or when. That’s why its important to balance future goals with the present in mind. As a single parent, it can be difficult to save for tomorrow while giving your kids experiences today, but it can and must be done. We’ve already discussed why buying a home you can afford is more important than moving into a new luxury community. Recently we explored why saving for vacations in a sinking fund is a must-do and the necessity of eliminating credit card debt. Now, we’ll see why you should focus on socking away 15% of your annual gross income for retirement each year to complete your financial transformation. Doing all of this allows you to build traditions and take much needed time off now while also preparing for the fabulous days ahead – when you’re done working and are ready to live out your golden years, partying like never before.
Follow the tips below to make sure you maintain proper balance in your financial life!
Step 1: Calculate what you’ll need to save in order to have a comfortable retirement. You can use a retirement calculator like this.
Step 2: Automate saving 15% of or more of your gross income for retirement through your employer and/or a ROTH IRA.
Step 3: Determine how much you’re willing to save each month for vacations. I like whole numbers, not percentages here. Maybe $50 every two weeks to start.
Step 4: Automate saving your vacation money into a high interest account that you can use to store this sinking fund.
Step 5: Plan vacations during off-peak seasons so that you can have more enjoyment for your bucks.
Step 6: Take the vacation and only spend what you’ve saved. This way you can enjoy the fruits of your labor now, with no regrets, and still be on pace to retire with plenty of cash as well.
As single parents, people often think that they can’t afford to have fun and must suffer in solitude while others live out their dreams. This just isn’t true! Single parents can do anything they want, it just takes time and preparation – things most people should practice anyway.
As the new year approaches, think of your financial, physical, social, spiritual, emotional, and vacation goals. Determine what you need to do to achieve them all, create a plan, then put it into action. Yes, you need to save for the future, but you must enjoy life today too. Share one plan you have to maintain balance this year in the comments below.
Happy Saving! Live well!