The latte phenomena - the $4 cup of joe, $30 nail job...
http://www.nirsonline.org/storage/n...ings Crisis/retirementsavingscrisis_final.pdf
The average working household has virtually no retirement savings. When all households are included— not just households with retirement accounts—the median retirement account balance is $3,000 for all working-age households and $12,000 for near-retirement households. Two-thirds of working households age 55-64 with at least one earner have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement.
It some pretty scary statistics. Oh course I can't help but wondering why? Was income so low saving was and is simply impossible? Is it a question of poor priorities? The study suggest you need at least 8 times your income at retirement. I guess that too would be dependent on how much of your income you save.
In my own case we utilized the timex phenomena
1. We've always saved first then live on the rest
2. We avoided the $4 latte - I just can't do it.
3. We clip coupons and our big deal was pizza and a movie at home.
5. We made thrift a part of our lives...
You probably can guess the rest ...maintained drove cars until they were tired...etc.,
People generally don't talk about money much - other then to complain. I have observed a couple of things that seem to be prevalent in many friends and colleagues.
Spending windfalls whether it is from an inheritance, bonus, tax return, real estate sale...
The zoom zoom factor - buying too much car or truck ... Do you know what a well appointed f150 costs? I couldn't believe it.
Toys and some of the worse ones have a motor on the back - ( I must admit I have a yen to buy a 2 person kayak for the son and I to fish from)
Is it discipline? How terrible it is out there? Is it a cultural thing ...to much tv?
Your thoughts if you care to contribute?
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