It’s human nature to avoid things we don’t understand. Then, there are those things we can’t avoid in life like the ending of a relationship, public speaking or learning how to use a computer. As the article below shows, people will go to great lengths to avoid these things, when inevitably, they need to be to be dealt with effectively.
The good news is that learning how to save money is a skill. There’s nothing to fear. Just like most skills, learning how to save money is a skill that can be acquired. I hear you saying “But I don’t have any money.” Oh yes, you do! Let me explain. Savings is very similar to working out and losing weight. It starts with taking consistent action. The absolutely most important thing to do is to start. This the secret to saving money! Starting and sticking with it! It doesn’t matter if it’s a penny or $200 per month. You just have to get it in gear! One of my all time favorite quotes:
“We are what we repeatedly do. Excellence, therefore, is not an act, but a habit.”
– Aristotle
Outliving Savings Feared More Than Death
June 17, 2010 — Nearly two-thirds of Baby Boomers fear outliving their money in retirement more than death, according to a new survey.
The study, titled “Reclaiming the Future: Challenging Retirement Income Perceptions,” by Allianz Life Insurance Company of North America (Allianz Life) , indicated that 61% of those Boomers were more anxious about outliving their savings, but nearly one third (31%) of those respondents say they are not too clear about what their expenses will be in retirement. Not surprisingly, 36% have no idea if their income will last.
A majority of respondents feel their retirement lifestyle must surpass their parents (79%), which Allianz said indicated a need to focus on income in retirement versus accumulation of assets. When asked how much yearly income is needed in retirement, respondents indicated a median income of $59,000 per year, but Allianz noted that Boomers were off by a factor of nearly three times too small when estimating how much they’d need to save to create that household income.
In fact, asked which they were more likely to guess correctly, exactly how much money they’ll have (or need) at the point of retirement or how many gumballs are in the jar at the local county fair, just over half 53% felt confident in their ability to gauge their retirement income needs – only six percent higher than those more certain of their gumball guessing skills.
Related posts:
- 4 Savings Habits To Increase Your Savings – Savings Habit 1 Getting The Most Out Of Your Current Savings
You don’t look at the other side of the equation! Count the number of times people try to sell to you during the day! Every guest on TV is promoting a book or a movie that is about to be released. Every where you turn there are advertisements for the latest electronics. Web pages are filled with advertising. And the beauty of it is that all these wonderful consumer goods are inexpensive when paid for over a multi-year period with monthly payments. UNTIL IT IS ALL ADDED UP!
The fear of outliving their savings is a fear that for most people is far down the road. The present satisfaction of getting the latest cell phone/video game is immediate. For many people they will do ok for a while but eventually cycle back into falling into debt – as they do with the lose weight/gain weight cycle. And, what is really interesting, is that it happens even to those with an extraordinarily high income!
Having said all this I hope your post inspires some people to get on the right side of having their money work for them rather than against them!
You bring up a good point. Yes, “until it’s all added up.” But the immediate gratification wins.
In my experience much of the “fear” is simply a lack of willing to deal with the problem of spending more than you earn. Personal Finance certainly isn’t rocket science. Its much more about having the self-control and discipline to invest in yourself versus the immediate gadget flashing in front of your eyes. I like certain things like technology or travel however, “First Things First”. I’ve always valued the “peace of mind dividend” of putting money away and taking care of my financial house versus almost anything else. That’s a feeling no gadget would ever replace. Thanks for the comment, very timely.
There are a lot of people I know who I wish would posts like yours! They just have had nobody really explain these concepts to them! I wish they would emphasize it in school.