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Women, Retirement and the Return of the Piggy Bank
By Sandra Reynolds, CFP
Planning and saving for your retirement may seem like a goal that’s far in the future. Yet saving, especially for retirement, should start early and continue throughout your lifetime. You don’t have to work outside the home to put money away for retirement. If you are a Stay-At-Home Mom, you can still put money in an IRA as long as you have a spouse (husband under federal IRS rules) who works for pay or you receive alimony. In this issue we will take a look at ways in which you can save for retirement.
But I never have any money left at the end of the month. What can I do?
One of the mistakes that people make is to wait to the end of the month to see how much money they have left before sending money into their retirement account. Here are a few suggestions to build a nest egg a little at a time.
Where Did All My Money Go?
Go out and buy a small ringed notebook (the kind that fits in your purse or pocket).
Write down everything that you spend money on for one month. Do this faithfully on a daily basis. Include EVERYTHING! From the coffee to the heating bill, put it all down in your notebook. At the end of the month, go back and look at where your money is going. Are you spending your money on things that you NEED or on things that you WANT? Reduce the money you spend on things that you want, and you will save more money for things that you need, like your retirement fund. What changes could you make in order to save money for your retirement?
Pay Yourself First
You’ll need paper, scissors, a stapler and a pen. With your pen, divide each sheet of paper into equal size strips and write your name and the amount you want to save on each strip. Cut the paper into strips, stack one on top of the other and staple on one end to create your own retirement payment coupon book. Put it with your bills and when you pay your bills, pay your retirement coupon first.
Return of the Piggy Bank
The first thing you need to do is go out and get an old fashioned piggy bank. They are very inexpensive and provide a physical reminder of your savings goal. The second thing you need to do is to forget looking for the exact change and pay for everything with dollar bills. You’ll find yourself accumulating a lot of change.
When you get home put the change in your piggy bank. I have two piggy banks, one for quarters and the other for dimes, nickels and pennies. If I get an unexpected windfall or have extra cash, I also put it in the piggy bank. It is surprising how much money you can save through spare change. When they are full, take them to a bank that will mechanically count change at no cost and invest that money in your retirement account.
Check Book Magic
Financial Planners usually advise clients to balance their checkbooks and I know we all balance our checkbooks to the penny (haha)! There is a painless and easy way to build up a sizeable retirement fund using your checkbook register. When you write a check for $50, instead of entering $50 into the register, put $55 or $60 instead. This way you will build a nice cushion that can be invested on a monthly basis into your retirement account. Once again, money never seen is never spent.
As you can see, you don’t have to have a lot of money to get started with your own retirement plan. There are many ways to save money. Which ones will you choose?
Sandra Reynolds, CFP
Sandra Reynolds, CFP® specializes in the financial issues affecting women and their loved ones.
Sandy has been a guest speaker and participant at the State Treasurers’ Money Matters Conference for Women in Massachusetts and Maine. She has also been quoted in articles for “Investment Advisor”, “Financial Planning”, and “The Journal of Financial Planning” magazines as well as appearing on WOMR 92.1 radio. She is a retired teacher and adjunct faculty for the College of Financial Planning.
Sandra Reynolds, CFP® welcomes clients from all walks of life with varying income and net worth levels. She offers clients a safe, relaxed and non-judgmental atmosphere where they can explore their values, goals and life plans.
Securities and Investment Advisory Services Provided through Capital Analysts Incorporated Member FINRA/SIPC.
Please feel free to contact Sandy at 508-636-6521 or visit www.reynplans.com
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