A sad thing happens when we become adults...
We stop believing
in Pirate Treasure.
I hear it every day: "It’s easy to invest – if you have the
money."
Some people are angry or bitter that they don’t have money
to invest. Others are genuinely concerned for their future. So, what is the
best strategy to save a lump sum for investing?
Be a Pirate!!!
Finding money can be fun! I love those adventure stories
about searching for lost treasure! King Solomon’s Mines, Raiders of the Lost
Ark, and of course Pirates of the Caribbean! When I was a kid I used to love scavenger
hunts during the holidays. Finding lost jewelry or money on the street is still
a huge thrill! Treasure hunting is a blast. Even now, I am still a big fan of
pirates! ;)
What does that have to do with investing for retirement? It’s
all in the perspective.
To an adult, saving can seem like a chore or even a punishment, but if
you change your perspective, it is FINDING MONEY!
How much money can you find in
YOUR LIFE every year?
Once you are on a path to a debt free life with a safety
net, it’s time to ask:
Where’s That Gold?!
The first step is to evaluate your current lifestyle and
take a critical look at what you are spending.
That's right: Take a good look at ALL your expenses.
What are you spending money on? It may surprise you!
AT WORK
Beverages
Do you buy a coffee at work every day? That could range from
$2 - $5 dollars. In a year that is $500 - $1250 that could be added to your
retirement savings! Stop buying, or buy less often and try having tea, water --or
something else-- at your desk.
Meals
If you buy lunch at work, that can range from $7 to $20 a
day, depending on whether you go to the cafeteria or out to a restaurant.
Figure
out your cost and total it for the year. The number may convince you to change
your lunchtime spending habits!
Of course it is important to socialize with your colleagues,
but find ways to cut down on what you buy when you are out, like ordering a
soup instead of that steak.
Have a snack (think: vegetable sticks or some nuts
from home) at your desk before you go so you are not tempted by the menu.
Snacks
Buying snacks from a machine? Is that $2 a day? More? Total
it up and find another less expensive option.
Parking
Paying for parking? Find out if there is a less expensive
option down the street, or outside of the commercial district. You might find
you enjoy walking a couple of blocks – especially if the savings are
substantial. Park far enough and you can add the cost of your former gym
membership to the savings account!
How much can you find to add to your treasure chest from your work?
AT HOME
How's Your Dwelling?
Your lifestyle at home may be sucking money from your
retirement. (We will save vampires for another day!)
Determine how hot in the winter or cold in the summer your
home really needs to be. A small adjustment to your climate control could bring
big savings. Make some sacrifices! Put on a sweater or cuddle under a blanket
when it is cold and wear the lightest clothing possible when it is hot. Some
utility companies offer calculators to see your savings when adjusting
thermostats. Give it a try!
While you are on that utility site, take a look for other
energy saving ideas for your home. Find out about energy audits, or the latest
technology in weatherproofing your home. It could save you thousands of dollars
over time.
Look for ways to cut down or eliminate these expenses until
you have reached your savings target for the year. Set up a specific savings account for the
money you decide NOT to spend and watch it grow! That positive reinforcement
may inspire you to save in other ways, too!
Consider Your Media Habits
Do you really need 5000 channels on your TV? Evaluate what
you really watch and find a package that gives you just that. Even if it is only
a savings of $10, that’s $120 per year! While you are at it, do you need top
internet speeds – to check your email??? Check your usage. Do you regularly max
out your download allowance or can you go to a lower tier of service? There may
be more savings for you right there! Still have a land line? Have you used it
lately for anything other than hanging up on a telemarketer? Subscribe to
papers or magazines that you NEVER read?
Congratulations! You have just found more money for your
retirement savings!
Take A Look At Your Meals
Do you buy prepared foods or take-out on a regular basis?
These options are expensive – and probably unhealthy!
Try to limit these items to special occasions or “emergencies”
– you know – like when you get home late and are too tired to cook, are sick, etc.
Start cooking from scratch - as a family – and prepare good,
(inexpensive) food while you catch up on each other’s lives.
And don’t forget to package some for lunch at work!
I would not be surprised if you cut your grocery bill in
half! But start with saving a conservative $20 a week on your overall food cost–
that is a savings of over $1000 a year!
Another great find for your treasure chest!
Entertainment
Everyone needs a social life. But it does not have to cost a
lot!
Take a good look at what you spend on dining out, drinks,
movies – whatever you like to do.
Try reducing the frequency of expensive outings. Replace them
with less expensive or free options. Find strategies so these evenings cost you
less. Does your favorite restaurant have a 2 for 1 night? If so, change the day
you go! Did you know that some museums offer free admission on certain days?
Are there "cheapie nights" or 2nd run movie theatres in your area? Are there free
attractions in your area? These options could add a good amount to your savings!
Look at all aspects of your life and Find the TREASURE!
How much could you find for your treasure chest? Take up the
challenge!
If you are serious about planning for your retirement, you
may need to make some changes.
This doesn’t need to be negative. DO NOT feel
deprived!
Think of it as a challenge to see just how ingenious you can be. Picture
that treasure chest getting fuller. Hear the sound of gold coins clinking as
they fall in. If you believe you can create a chest that feels too heavy for
you to lift, you can achieve it!
The best way to ensure a comfortable retirement is to leverage funds now. Smart investments now can yield substantial returns.
These steps are good places to start a more conscious and directed route to achieving your financial freedom. Read, reflect and take what will work for you.
Bottom line is that there is no blanket strategy. Each person must evaluate their own circumstances, needs and desires. Get the help you need to achieve financial freedom.
Above all, believe in yourself and believe that you will achieve your goal!
_________________________________________
Sources:
Lynda at Sonoran Sun | Private Equity Investments
