Saving money has never been easy, but evidence suggests that it is getting harder for individuals, couples, and families to set aside money for their retirement, children’s educations, or just for a rainy day. As a recent CNBC article highlighted, even families making $500,000 per year are living paycheck-to-paycheck, with little to show in terms of savings except for 401(k) investments. Another study reported that two-thirds of people between the ages of 21 and 32 haven’t saved anything at all for retirement.
The biggest culprit? Lifestyle creep. Housing costs, transportation, and other costs of living expenses have risen. For some, those costs are difficult to control, especially in certain geographic areas. In other areas, living expenses are theoretically easier to manage. That’s easier said than done for anyone who is living beyond their means. Add in the competition to keep up with the Joneses and it’s not hard to understand why saving is difficult.
Ensuring your retirement house is in order is important for everyone, but perhaps more so for people who are having trouble setting aside funds for their retirement. Working to evaluate your finances and find areas to cut out or trim expenses now can help provide you with the income you’ll need during your retirement years. If you have unsecured debt, such as credit card debt or unsecured loans, make a concerted effort not to accumulate more debt while you tackle your outstanding balance.
Getting your financial affairs organized and taking control of debt and savings is important for your well-being now, and in your retirement. It’s also a factor in getting your estate plan in order, as it will make it easier for your loved ones to administer your estate if you become incapacitated during your lifetime and when you die.
When you work with an experienced estate planning attorney, the process includes a detailed review of your current assets and a discussion of various strategies designed to help meet your needs. To learn more, contact us today.