dude, this is not Mustachianism Around the Web. This is our concern dude.
But, this article is a gold mine:
Let’s assume you are 40 years old, earning $100,000, and you start squirreling away 10 percent annually. If you keep that up until you are 67, you could save nearly $582,000 on an inflation-adjusted basis or about $697,000 by age 70, according to calculations by Vanguard. (That assumes earnings grow by 1 percent annually, while savings return 4 percent each year, all after inflation.)
Okay, that seems like a good, albeit late, start.
Not everyone can set aside that much.
Oh. So now let's backpedal to saving less than 10%. Great idea!
SAVE MORE TOMORROW This approach, developed by two behavioral economists, is meant to help people without much willpower to save. The idea is to save half of future raises, bonuses or side-job money
Ah, so I'm making 100K and getting a 1% raise every year. So I'll painlessly put half of that raise into savings. Year 1, that's an extra $500. I'm well on my way to retirement. But wait! In Year 2, I'm now making $101K so when I bank half of my raise for this year, it will be $505. Woo Hoo! Now I see how this works. Getting hardcore!
But I'm worried it still may not be enough. And after all, I
only make $100K per year. I think I could use some more income. Should I get a side hustle?
DO SIDE HUSTLES That is what Alan Moore, also a co-founder of the XY Planning Network, calls jobs for extra income. Even a few hundred dollars each month can help you catch up, he added.
Now we're talking. A few hundred dollars, let's say $300/mo for example, and of course I save half of that. So now I'm making $103,600 per year and saving $2300. With a savings rate of 2%, I should be retired in no time. But, what if I try to really up my game and also cut some expenses.
other experts suggest tracking spending and eliminating things that you really don’t need or that don’t make you happy.
Now we're getting somewhere! So I should eliminate wasteful spending and start saving and investing that money as well?
Then, you might start by putting aside half of those savings,
So I've eliminated spending on things that don't make me happy, and now I'm supposed to only SAVE HALF of that money!?!? What should I do with the other half? Why, spend it on
different things that don't make me happy of course!
But really, I have no reason to worry. After all, by banking half of my raises, cutting out a few dollars of expenses, and possibly bringing in even more income for which I can spend mindlessly, I'll be okay, right?
In catching up on retirement savings, perhaps the first place to start is to let go of the anxiety or shame over being behind — and then make some changes. “You do have time, and unless you have a big pile of debt,” Mr. Becker said, “you don’t need to do anything rash.”
Ahhh, seems I'm right on track! No need to do anything rash. Who wants to jump in the SUV and go to Starbucks?
