Quesada, Gardia: Retirement and you
December 15, 2016
How does one begin a personal retirement without drastically changing their budget or lifestyle?
Believe it or not, it is much easier than you think.
First question, can you save $5 per day?
Without hesitation most people will answer "yes" to this question. After all this amount could easily translate to a daily lunch out, or morning coffee routine. According to the US Dept. of Labor statistics and Gallup polls, American's spend an average $20 to $90 per day on items they really don't need! Yet, somehow every week when we meet with clients a typical scenario trends, clients state to us that "they only have money for bills and nothing left to save for their future." But wait a second … if we base our findings on the daily average of just $20 we have already established that indeed most of us do have $5 per day to start saving? So let's find that $5 a day that has slipped away from us, and create a new habit of conscience spending. For most this will require discipline and a technique that we like to refer to as "Time and Value of Money". Please, keep in mind you don't need to make drastic changes to your current lifestyle to achieve a modest saving plan for your future.
Implementation: Finding the Money and Saving It
I want you to dedicate 30 days to tracking the money you spend that is above and beyond your monthly fixed expenses. Do not track expenditures such as mortgage, rent, car payments, insurance, groceries, credit card bills, and utilities. Use a small pocket spiral notebook to keep on you during the 30 days, or use your smartphone to track all of these above or beyond expenses at the time of purchase. We are talking those expenses such as: eating out, coffee shops, convenience store trips for snacks and beverages, recreational marijuana, alcoholic beverages, impulse purchases, any and all those expenses you really didn't need to splurge on. Any purchase that didn't impact your life by not having those items to begin with.
YOU HAVE TO WRITE THESE EXPENSES DOWN FOR 1 MONTH. DO NOT ADD THEM UP BEFORE 30 DAYS.
On the 30th day tally up your spending, sit down and hold your heart. It's going to hurt! Look at the total, and let it sink in. Congratulations you have found your new savings.
When you eliminate the unnecessary spending and have a solid dollar amount that is essentially wasted on items you don't need, you will begin to realize that you can start the trip to become financially secure at retirement. All made possible without making drastic changes to your current lifestyle.
Rebecca Quesada and Rudy Garcia are the owners of Five Rings Financial. They can be reached through their website: http://www.Taxfree4me.com.