When I began working at 16, I never questioned where the Social Security money I was paying out of every paycheck was being spent. I have begun listening to the news and reading articles about the financial state of both my state and our country, and I must admit that I am worried that funds will dry up before my boyfriend and I become eligible for the benefits.
Growing up, I remember my father mentioning not being able to retire at the right age because he wouldn't have enough money to live off of. I can't help but wonder if my generation will even have the luxury of retirement, especially with the way things are looking at this moment. After talking to my boyfriend about starting an official retirement savings of our own, we are going to do it.
Start a savings accounts
I am not a fan of traditional banking but using their system is necessary for what I want. I plan to open the account when we have $250 to place into it. There is a local bank here that only has one other branch, and it would suit our needs perfectly. That will be where we choose to hold our money. Even though we aren't married, the account will go in both of our names.
After the initial deposit of $250, I plan to make bi-weekly deposits. This works around my boyfriend's pay schedule and will allow some wiggle room for overspending if it occurs. After sitting down and figuring out what is "extra" money, I came up with $50. If we cut back on some other expenses, we could probably double this. In order to not overextend ourselves, I plan to put away $25 every two weeks. This is not a huge amount, but over the course of 30 years, it will definitely add up.
Avoid spending this money at all costs
We have a small savings fund already. It is mostly for emergencies and getting through the weeks while living paycheck to paycheck. This will be the only account we have in the banking system, and it will be strictly for retirement purposes. There will not be any transactions taking money out, for any reason. This will be the hardest part of the endeavor, but it will be well worth it in the long-run.
After hearing more and more about where our country is headed based on the economic state we are in, I am not taking any chances. We have the means to help ourselves prepare for the future, so why shouldn't we? If all goes as planned, by the time my boyfriend plans to retire in approximately 30 years, we should have $18,000 saved. It is still not enough to live off of, but it is definitely a start.
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