14 Jan Mortgage Mike’s Views On Saving
One of the greatest life regrets told by elderly people is that they wish they had saved more money when they were younger. According to a recent survey by the Employee Benefit Research Institute, 57% of U.S workers reported less than $25,000 in total household savings and investments, excluding equity in their homes. Further, the crisis of seniors without sufficient savings to retire is a growing challenge.
The old adage of, “Pay yourself first” is one that should be adapted by most workers. I typically advise my clients to budget their expenses to be able to allocate 10% of their gross income to be split between short and long term savings. If managed properly, this should provide sufficient savings to have a comfortable lifestyle at retirement. Also, remember that retirement is a number, not an age. Know what the amount needed to retire is and then make progress each month towards that goal.