If you’re a baby boomer woman and you feel like you’re behind in your retirement savings, you are not alone. According to The Allianz Women, Money and Power Study (2007), 62% of women wish they had done more to prepare for their retirement. More than half (55%) wish they had saved more money and had started saving sooner.
Women will most likely outlive their male counterpart, which means that the likelihood of women being on their own at some point in their lives is quite high.
Longevity is the biggest financial risk women face in retirement.
Because of the longevity factor alone, we women need to take charge of our finances and save like crazy. We need to get rid of debt as quickly as possible, build emergency savings and brush up on our investing skills. In short, we need to become masters in our finances.
If you are one of those women who earns enough money to more than cover your expenses, yet somehow you get to the end of the month with nothing left over and nothing put into savings then this money tip is especially for you.
Money Tip: Set a lifestyle ceiling on your expenses.
One way to find more money to save for retirement is to set a lifestyle ceiling on your expenses. Your lifestyle ceiling is the amount of money you allow to go out for expenses, debt payment, incidentals and splurging.
Decide the amount of money you will allow yourself to spend each month to cover your expenses. That’s your lifestyle ceiling.
Then make a commitment that you will not spend anything over your lifestyle ceiling amount – NO MATTER WHAT.
Even if you get a raise, a bonus or unexpected income. From now on, that all goes into your retirement savings.
I believe women are capable of doing amazing things. Especially when we’re motivated by our goals and dreams.
What does your dream retirement look like? Let that vision keep you inspired along the path of your financial journey.
Let’s make our baby boomers mamas proud of us for taking action on our savings plans!
Patti Fagan, an award-winning financial coach, is an expert and sought-after speaker on Women, Money, and Retirement. Over the last twelve years, she’s been helping hundreds of women achieve financial security for their retirement years through teaching workshops, coaching, and blogging. Patti is passionate about empowering women with their money mindset and financial habits because she wants women to be financially secure, both now and in their retirement years. For money and retirement planning tips and free downloads, visit MontereyMoneyCoach.com.