on-track-for-retirement

New to the Live Richer Challenge: Net Worth Edition? Learn more about it HERE.

Missed some of the Challenge tasks? Catch-up then come back…

Day 15: HEREFinding Your Why

Day 16: HERE: 401(k) and IRA

 

Week 3: Maintaining Your Net Worth

Today’s Easy Financial Task: Find out if you’re on track for retirement.

How to rock this task:

  • Use a retirement calculator to determine how much you need to save

 

Welcome to Day 17 of the Challenge!

Today, we’re talking about retirement.

The golden years.

The permanent vacation.

Retirement may be years or even decades away from now for you, but early planning is key if you want to live the permanent vacation type lifestyle.

The scary truth is that today many middle-aged adults are approaching retirement age with little or no savings to fall back on in the golden years.

Here are some alarming stats from The Motley Fool:

  • 1 in 3 Americans have nothing saved for retirement
  • The average 50-year old only has $60,000 saved for retirement
  • The average social security check is just $1,355 per month

 

Would you be able to lead the lifestyle that you want in retirement on $1,355 per month?

There’s also no guarantee that social security benefits will be available for future generations. Ultimately, the responsibility for saving is in our own hands.

 

A lack of preparedness when you hit retirement doesn’t just have an impact on you and your spouse. It can also put a burden on your children and family.

When planning for retirement, you aren’t just doing it for yourself. You’re doing it for the betterment of your family and legacy.

 

The time to think about retirement savings is now!

Starting early means you can take advantage of compounding interest. Compounding interest is essentially money making money that’s making money.

We love compounding interest y’all, woot woot!

Since saving for retirement is crucial for increasing your net worth, in today’s lesson, I want you to use a retirement calculator to determine where you are right now.

 

The Retirement Calculator

You can use the retirement calculator from NerdWallet here.

Using it is pretty simple.

  1. Enter your age
  2. Enter your household income
  3. Enter your current savings

Then use the menu on the left-hand side to toggle the variables including your monthly income, what you’ll spend each month when you retire, and your retirement age.

 

Make Adjustments or Sign up for an Assessment  

When you get your result, don’t be alarmed if you’re not as close as you should be!

If you’re in the yellow, green, or blue areas give yourself a pat on the back.

You’re on your way, getting close, or on track. That’s something to be proud of.

If you’re in the red and your retirement plan needs attention, take pride in the fact that you’re now aware and you can take steps to prepare.

 

***EXTRA BONUS***

Today is the last day in the Challenge to take advantage of this AMAZING freebie from ElleVest.

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Start by getting your FREE, personalized investment plan from ElleVest. A financial advisor would typically charge you $1000 or more to create this plan for you. But I got the hook-up.

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****

 

We’ve reached the end of today’s lesson!

Woop, woop!

I love talkin’ about retirement.

Share with your accountability partners how you felt about this task.

If you feel comfortable, you can also comment below on how close you are to being prepared for retirement!

 

Be sure to share what you’re doing today with your friends on Twitter!

Today, I calculated how much I need to save for retirement! Day 17: #LiveRicherChallenge #LRCNetWorth Click To Tweet

 

Live richer,

Tiffany

 

You can reach out to me here:

Twitter: @thebudgetnista

Instagram: @thebudgetnista

Facebook: The Budgetnista

Private Forum: Dream Catchers : LIVE RICHER

 

P.S. Don’t forget to get your free Live Richer Challenge: Net Worth Edition Starter Kit. GET IT HERE.

P.P.S. Here’s a copy of the Challenge Calendar. It’s a fun way to keep track of your progress.

LRC Net Worth Calendar

Want to work through the Live Richer Challenge: Net Worth Edition in a workbook? It’s part of a bestselling series!

Click the link below and get your copy.

My Lisa Rule: I have 4 sisters and Lisa is the baby (well she’s not a baby anymore). Of all of my sisters, I’m the most protective of her. Before I share any product or service with you, it must pass my Lisa Rule.

What’s the Lisa Rule? If I would not advise Lisa to use a product or service, I won’t advise you to. YOU are my Lisas. I feel protective of you and your financial journey.

Ellevest passes my Lisa Rule. Yes, I am an affiliate of Ellevest, and I earn a commission off of referrals, but I would not recommend a product or service that I didn’t believe was helpful and useful.