Saving For Retirement: You Have More Options Than You Think
By Anonymous
Remember the Savings and Loans problems of the '70's and '80's? While banks and their various fees have been as much a stumbling block as they have been a boon, the ensuing crisis devastated finances for a very large portion of the population. Still, we managed to survive, and we all learned a very painful lesson - have a back-up plan.
That doesn't mean to start keeping bags of cash under the mattress; it leads to sleepless nights and back problems. Besides, part of every good plan is using the assets you have to your best advantage. With retirement for many of us right around the corner, Social security not exactly being secure, a plan is needed that will allow you to eat steak with your beans and rice beyond the present and into your "golden years". The most effective plan involves reducing costs, managing your money correctly, and taking advantage or the options available to you.
Reducing spending is actually easier than you might think. It takes a bit of the discipline that our parents always griped we never had, with a little bit of thinking outside the box. The first key is instead of buying less, buy more. Whenever possible with non-perishables, buy in bulk. If you have the storage space for it, buying in bulk can reduce monthly spending and increase your overall cash flow. Also, you can save a bundle by purchasing generic products. Often the quality is the same; most of what you buy is in the packaging.
However, there are items that you shouldn't balk at spending a bit extra on. For example, spending a bit extra on clothes or tires will mean that you are getting a better quality product; which means you won't have to replace those items as often. Properly maintaining what you have can also greatly reduce costs.
A twenty dollar oil change and a tire balancing every so often will keep a car running in top condition, making expensive break downs as likely as comeback by the Who (although it would be great if they made a come back).
Of course, there are many ways to cut costs, and one of my favorites involves shopping. There are many cost-saving programs out there, but one of the most effective is a program called U Promise. There are similar programs out there, but essentially what U Promise allows you to do is to purchase certain name-brand products that are contributors to their program.
When purchased, they take a small percentage from what you spend and deposit in a non-taxable savings account for somebody's education. If you went through college, you know how expensive it can be, and how hard it can be to save up for four years of college. U Promise allows you to purchase and save simultaneously, and it doesn't in a way that won't hurt you around tax time.
These aren't the only ways to make an impact on your children's (or your own) future; but they certainly open up some options. Most of us grew up with parents who survived the depression, but cutting costs doesn't have to mean sharing clothes, pinching pennies, and denying yourself the finer things in life. While the depression era teachings shouldn't be ignored, many of us have found our own way.
By taking some of the principles and applying a bit of innovation we can afford the finer things without spending away our retirement. For the record, when I say we, I'm talking about my generation...
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