- Personal Finance»
Retiring Now is NOT an Option!
Start Saving for Later
If you are in your 20's or even in your 30's, you need to start stashing away some cash for retirement. I regret it every time I think about it. I know I should have started with a few dollars or signed up for an IRA or an annuity of some kind of savings while I was younger, but I didn't. Now that I am ready to retire from my JOB, I can't; at least not just yet.
As an educator, my teacher retirement is all I am going to get. I did not work at a store or any other place part time like some of my colleagues to obtain social security, so I will not be able to supplement my income if I choose to retire anytime soon. The reason I can't retire just yet is because I still owe my house and I still owe two more credit cards. Hey, I'm doing good. I already paid off six of the cards. What I did was obtain an equity loan once before and I paid off my credit card debt so that I could retire and just have my house payment, but then, my father passed away and I jacked up all my credit cards fixing up a house for my mother to live in. When my father passed away, my mother was living at the place he left her. It was an unfinished house; only one area had a roof on it and the house did not have good insulation. Winters were pretty cold and summers were pretty hot. This house was located outside the city limits about 30 minutes from any hospital or doctors' offices. I felt that it was necessary to move my mother into the city limits. Now I have to work a few more years in order to finish paying off all of my debt.
Credit Card Debt
The worst thing anyone can do is not save money for retirement and on top of that run up the credit card debt and still have a house payment by the time you are of retirement age. That is REALLY bad. We can blame the circumstances and we can have a bunch of excuses as to why things are the way they are, but the reality is that it does not take a lot to start saving when you are young. Even a $25 deposit into a securities account would have been better than nothing at all. The thing is not to touch it once you start saving it. How I wish I had done what I advice here in this hub. I did start a securities account in my early 40's with A.L. Williams and then with Primerica a couple of times, but when times got hard, we pulled out the money instead of looking for other options. Since then, I have been saving, but it is not the same, I am a lot older now. If I would have started way back in my late 20's or early 30's, I would have had a really nice nest egg and I would have been able to retire by now.
Some of us also maintain two households. I pay our house mortgage and I pay to maintain my mother's place. That will be hard if I retire now so my plan is to wait and retire until I pay off our house. I owe about $41,500. but it was a ten year equity loan so I should be done in another four or five more years. I guess, in a way, it is good that I wait to retire because I will be able to continue working as an educator with my current salary to pay off my two credit cards and my mortgage. In the mean time, I am building up my net income for when I do decide to retire. The number of years I have worked plus my age will increase the percentage I will be earning per month when I retire.
Budget to Save
All is not lost, I might still be able to save some money after I pay off my credit cards. Better late than never. I will have the money I am paying on my credit cards to pay on the principal on the mortgage or to put away in a securities account. It would have been better if I would have kept my debts to a minimum by paying cash for stuff and if I had not gotten into debt again by jacking up all those cards. Unfortunately, things are not perfect in this world. My recommendation is that everyone start young to put away money for later. Make sure to budget for it so that you do not feel it coming out of your pay check and that it deposits directly into a savings account. Pretend that this savings does not exist. You do not want to touch it. If you have emergencies, find other options to obtain cash. The objective is to retire when you are eligible to retire and not have to be paying off credit cards or a mortgage like me. Look for the best savings options. Do some research and then decide on which option is best for you that can meet your needs.