Where's That GOLD?!

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?

First of all, it is important to get rid of high interest debt and have a healthy emergency fund. To learn more about that, read: TOP 3 Improvements For Healthy Finances This 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 2^nd 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!

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Sources:

Lynda at Sonoran Sun | Private Equity Investments