Over the last 40 years, the single adult population has grown by nearly 40%. That’s 96 million single people now living and working in America. And when it comes to saving for retirement, single people often have different goals and face different challenges than married people do.
The two major financial advantages of being single are, first, you are free to do what you want with your money. If you decide to live debt free, save and build wealth, no one’s going to stop you. There’s no reluctant spouse to get on board or arguments over how much to save and invest.
The second advantage? No one’s going to mess up your plan. You don’t have to change your retirement budget to suit someone else, and there are no “surprise” debits to eat up your savings. Only one person can interfere with the success of your plan: you.
On the flip side, the single person doesn’t have the built-in accountability of a spouse. While you’re free to be smart with your money, no one’s going to stop you from making less intelligent decisions with your money, either.
To hold yourself accountable, you need a plan for your money, which starts with a budget. A budget makes you and your money behave. Without it, you’ll never have the “extra” money to invest for retirement. That’s especially important for single parents, who often struggle to keep the bills paid and food on the table, much less save for the future. You can’t afford to make mistakes, so you must make a plan to invest in your retirement and stick to it.
Even with just one income, you can have a comfortable retirement if you commit to following your plan.
Dave often uses an example of a couple making $40,000 who invests 15%, or $500 a month for retirement. After 40 years at 12% growth, they’ll have nearly $6 million for retirement! Even if they waited 10 years to start investing, they’d still have nearly $2 million!
Those same numbers apply to a single person who makes $40,000 as well. The key is getting on a plan and getting and staying out of debt. Without debt, it’s easy to contribute to your 401(k) and invest in your Roth IRA each month.
Singles often have a strong, independent spirit, which is great for making decisions. But it can lead to an unwillingness to seek expert advice. Everyone can benefit from the help of an expert, especially when it comes to investing for retirement. Investing can be a complicated and intimidating topic. The right investment professional will show you how to make investment decisions that fit your retirement goals.
New study adds to recent research that examines the merit of snowballing debts and how small victories provide encouragement to pay others.From Seattletimes.com
Buying a used car can be both a scary and expensive experience. Here are seven ways to be better prepared when shopping for a used car.From Huffingtonpost.com
Whether you are going through a new job search or a complete career transition, it's important to have a solid personal finance plan.From Blog.Chron.com