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| Even a Squirrel Saves for the Future |
Our government saw starvation first hand after the Great Depression of the 1930s and realized a need to take care of elderly
Americans with Social Security, so starvation was not the way to die. In the
1960s, Congress tackled Medicare so that lack of medical care for the
elderly was not the way to die. Now, fifty years later, the Affordable Care Act
helps Americans of all ages have health insurance and Social Security and
Medicare are still in effect. But without careful planning, elderly Americans
can still die of starvation or lack of good medical care. How could this
happen?
If you don’t save money during your working years, you won’t
have enough money to pay your portion of Medicare or your needs not covered by
Social Security, because neither program covers all your expenses. The
government intended for Social Security to cover only part of your needs,
because at the time, most Americans had a pension plan at work. Company-paid
pension plans are now personalized -- you have to make the contribution to a
retirement plan before your employer pays any part of it. Many of us live for today and don't make the contribution. If your employer gives you free money, why turn it down?
Social Security
covers 40 to 50 percent of your pre-retirement income, and out of that money
must come your Part B or medical coverage and maybe Part D for prescription
insurance coverage. Part A, or hospitalization coverage, has a deductible as
well. If you go to the hospital, you are responsible for the deductible.
No matter how much or how little money you earn, you can
save some money for your future. You need six to eight months of expenses saved
in an emergency fund. This fund can also be the start of your retirement fund.
We waste more money in the United States than people in many countries have to
live on. We buy trinkets, junk, more clothing than we can wear, jewelry, and
memberships we don’t use. Think through your lifestyle and what you need, and
pare down to save for your future. It’s a horrible thought that we might die of
starvation in America, but it happens. Older Americans today are choosing
between food and medicine, according to the AARP Foundation.
Start now.
You’ll be more relaxed with money in the bank to cover
emergencies and may even live longer as a result of less stress. Have money taken out of your paycheck to
cover a 401(k) or Roth 401(k), or set up an IRA for yourself by contacting your
bank. I'll confess that when we were 40, we thought we had many years to build a retirement fund. Twenty-five years later, we realize the importance of saving early to let the money accumulate interest, so we don't have to work for every dime.
Spend less.
One of the easy ways to spend less is to cook at home
instead of eating out. Cook vegetables, serve fruits, and don’t use starter
mixes like helpers.
Buy bleach, hydrogen peroxide, baking soda and vinegar for
cleaning supplies instead of squirt bottles of something you can’t identify
that is heavily perfumed.
Shop when you need something, and don’t use shopping as your
recreation.
Go to the park, library or zoo for free entertainment,
instead of spending your money on tickets for activities you may not even
enjoy.
Review your bills and cut expenses where you can. Expenses
you incur every month are bites out of your future funds. Call your utility companies
and ask for better rates. Telephone, cell phone, cable, electricity, alarm
systems and internet services all have loyalty or retention programs to keep
customers once they have them.
Buy used.
If you need something, call thrift stores and see if they
have the item available. Buy clothing at thrift or bargain stores. If you’re
afraid someone may see you or recognize something you’ve bought, go to the next
town to shop at their thrift stores. We frequent thrift stores and have made
friends with the clerks and other thrifty people. Some of our thrifty friends
own businesses, a couple are in real estate sales, and others are retired.
Don’t pay interest.
Save money by paying for purchases in cash or paying with
credit cards that you pay in full every month. It’s shocking to see how much
money Americans spend on financing. Dinner out for $100 should be $100, not
$125 because you didn’t pay the credit card on time. Make it your goal to pay
credit cards every month or don’t charge anything you can't pay off that month. You're borrowing against your future when you charge more than you can pay this month. Your future is money you need in retirement.
Live Modestly.
You don't need a new house or an electronics upgrade every few years. Living in the same house saves moving expenses, larger payments and contributes to your overall wealth. Pay for what you have, and appreciate it.
Think of your future every time you spend money.
Picture
yourself too old to get a job and choosing between medicine and food. It’s your
wake-up call.
