Women who haven't Saved - Can you help?

[Artiscara]

Hi,
I'm working with some women who have not saved for retirement. With 2 jobs most of them don't make enough to save. If you could suggest 3 things for these women to do, what would those 3 things be? (Most are around 60, have debts, and very small savings) Any thoughts or help is appreciated.

 

[MichaelB]

Get a roommate, learn to cook low cost nutritious meals, and learn to budget.

 

[Lewis Clark]

Adopt habits from The Complete Tightwad Gazette.

There are almost always things we can do to reduce our expenses. The question is how willing we are to change our habits.

 

[pacergal]

Agree with MichaelB. A roommate certainly would help lower costs.
Look for any programs that may help seniors, based on income. Do they qualify for SNAP or other programs?
Plan to work until at least 65, better 70 if able.
Definitely wait until 70 to collect SS
Even putting aside $25-50 each paycheck into an IRA would help a little.
Track spending, to the penny. Cut expenses as best they can, look as needs vs wants.
Tightwad Gazette is good.

 

[easysurfer]

I'll also add, don't fall for those wealthy widower romance scams.

 

[RetiredHappy]

Skip Starbucks and nail salons. In our last career when we ran our business, the most common theme for low wage female employees were that they "had" to get their nails done and bought Starbucks coffee etc.

Move in with family, get a room mate and get rid of credit card debts.

If they have under the table jobs, pay SS (x2) and report them on IRS form. They will get back more in SS benefits than what they pay into, since they make very little (bend points).

 

[OldShooter]

I think all states have senior citizen support web pages with links to all kinds of resources. You should start there. Quality will vary. This appears to be a mid-quality resource: Aging Resources Find the one for your state.

 

[MarieIG]

Budget -

Reduce expenses (low income/ subsidized housing, take in a room mate or rent a room in someone's house);
Subsidized healthcare/ health insurance;
Make shopping lists,
Do their own cooking;
Get rid of CC debt.

Earn a little more - work an extra hour or two, dog sit, cat sit; work until 70 if possible

Pay themselves first, with each paycheck, if there is an employer match get it, put a small sum in an emergency account, and a small deposit into a Roth IRA

 

[RamStride]

1. List all expenses, non-discretionary, discretionary and wants (vacations, stuff, etc.) and add the total amount.

2. List all income: current and expected in the future.

3. Compare #1 and #2.

They will immediately notice what needs to be done and it will come from them. This is where we can help if they are interested in listening for ideas. The rest is to come up with decisions and actions to change what they see. I would help with an initial budget/spend plan and provide them with an estimate on how long it will take to see results and suggest alternatives based on their specific situation/prospect.

 

[marko]

By age 60 most habits, financial or otherwise are hard to break for either men or women. Lots of justifications over the years got them to this point.

But OP: Have any of these women asked you for help? We have many threads here with the sad results of offering help without being asked.

 

[TickTock]

Check out a copy of All Your Worth by Warren and Tyagi from the library.

Read it.

Do the worksheets; adjust spending as appropriate.

 

[Irishgirlyc58]

The Area Agency on Aging for their location.
Services/ programs Pacergal listed.
I would add the Consumer Credit Counseling Program for the ones who have debt.

Consumer Credit Counseling Foundation and Credit Counseling Services

Consumer Credit Counseling Foundation (CCCF) offers personalized credit counseling, debt management solutions, and financial education programs to help individuals and families achieve financial stability and freedom. Our certified credit counselors provide expert guidance and support, creating...

www.cccfusa.org

Local Housing Authority for low income housing.
I would be cautious about rent sharing as it can turn into a real nightmare for some.
Pairing people up is a lot more difficult than it sounds.
The number one cause of senior homelessness is the loss of someone they share housing with- whether it’s a spouse, SO, or roommate.

 

[Koolau]

Quite any bad habits - especially smoking as well as professional hair care (keep it simple) and nails.

Pay off credit cards NOW.

 

[Cortina]

Quite any bad habits - especially smoking as well as professional hair care (keep it simple) and nails.

Pay off credit cards NOW.

We know you really mean Quit !!! (note : proof reading is a GOOD habit !)

 

[marko]

We know you really mean Quit !!! (note : proof reading is a GOOD habit !)

At least we know that an AI didn't write it!

 

[aja8888]

Without the ability to save any money in their current jobs, all they can do is:

1. Cut expenses,
2. Find higher paying jobs,
3. Room up together.

Outside of finding "sugar daddy's" to hook up with (low probability if you are in your 60's), they don't have a lot of easy choices.

 

[Sunset]

Skip Starbucks and nail salons. In our last career when we ran our business, the most common theme for low wage female employees were that they "had" to get their nails done and bought Starbucks coffee etc.

..... get rid of credit card debts.

.

Yep, my Sister even though had no savings and in CC debt would blow $$ on getting her nails done, etc... A false vanity.

 

[Walt34]

Get a roommate, learn to cook low cost nutritious meals, and learn to budget.

I'd be cautious about recommending the roommate. I did that twice; one worked out fine, one was a disaster. Last time I ever had a roommate and I will never put myself in that position again.

One suggestion I would make is "You must know someone who makes less money than you do. Live like they do and bank the excess."

Here's a ten-year-old thread started by a pizza delivery driver getting close to retirement. He didn't stick around long but it is proof that "it can be done". I thought it was very impressive.

 

[Gumby]

I've never lived entirely alone. Before the young wife and I married, I always had roommates, usually 2 or 3, to help split the rent.

 

[Dtail]

Get a roommate and pay off any CC debt.

 

[pb4uski]

Basic theme across all these posts is to live below your means so any excess can be saved.

First step is to analyze all spending for last 3-4 months and see where there are opportunities to trim. No need to be extreme but need to be realistic.

One area to look is monthly "subscriptions"... many are rarely used.

Cellphone is another area. We buy our own phones and use Mobile Virtual Network Operators. Our current MVNO is Red Pocket Mobile. DWs plan is unlimited talk/text and 10GB high speed data for $20/month. I'll bet they are paying more.

Good luck.

ETA: Also, look at this classic thread by our dear and departed friend imoldernu:
Thread 'Sharing 23 years of Frugal Retirement' Sharing 23 years of Frugal Retirement

 

[EastWest Gal]

Every state has resources for aging-in many states it's called <STATE> Department of Aging. There are resources such as free public transportation, low rent housing, SNAP, etc. A good roommate can work out well for some. Move in with family? Also, if these folks are local, I see you live in Portland. Find a job in a lower COL area if possible.

Here is a list of suggestions:

1. Stop using credit cards and pay off the debt. Show them how much the credit card company is ripping them off each month.
2. Cook at home, never eat out or go to Starbucks.
3. No going to the salon for coloring hair or having nails done.
4. Look at subscriptions-cable TV, etc.
5. Pay themselves first-save and invest-as much as possible.

As a joke: run for Congress. The average age of the House of Representatives is 58 years and the Senate is 64 years. They'll fit right in-not political, just reality, and just kidding.

 

[Route246]

All good points. I posit the following refinements. You cannot go back in time and fix anything. You need to change behavior moving forward.
1. Live at or below your means.
2. Cook your own food, never pay to eat out, ever.
3. Avoid self-pity. You don't deserve to "reward" yourself if it is going to threaten your well-being. Forget about that. This is about survival.
4. Shop at ethnic groceries for basics and staples. Things like vegetables, flour (yes, learn to bake and make bread from scratch, etc.), rice, beans are much cheaper at ethnic groceries (Indian, Korean, Mexican, Chinese, etc.) than what you pay at Safeway/Kroger/Albertsons/etc.
5. Cut back on protein and increase your fiber intake (it's cheaper and mostly healthier).
6. All of the bland, mundane, boring food can be depressing. Add vinegar, oil, Italian-style seasonings purchased in bags from the ethnic market. Splurge on balsamic vinegar if you really want something to supercharge your taste buds. Be open-minded to new types of foods as steak, prime rib and pork fillet should be avoided due to cost.
7. Buy a pressure cooker, you'll be amazed what you can do with cheap cuts of meat and vegetables.
8. Cook with the intent of eating left-overs. No better way to leverage your food budget.
9. Drink water. Sounds simple but it is cheaper than soft drinks, alcohol and juices.
10. Lastly, at the big grocery stores focus on their loss leaders and avoid buying routine goods there.

 

[RetiredHappy]

4. Shop at ethnic groceries for basics and staples. Things like vegetables, flour (yes, learn to bake and make bread from scratch, etc.), rice, beans are much cheaper at ethnic groceries (Indian, Korean, Mexican, Chinese, etc.) than what you pay at Safeway/Kroger/Albertsons/etc.
5. Cut back on protein and increase your fiber intake (it's cheaper and mostly healthier).

I would totally disagree to cut back on protein. There is no faster way to become diabetic and/or obese than to consume high carb food. High fiber food but not instead of protein. Cheaper cuts of protein, yes. Cut back on protein, no.

 

[Route246]

I would totally disagree to cut back on protein. There is no faster way to become diabetic and/or obese than to consume high carb food. High fiber food but not instead of protein. Cheaper cuts of protein, yes. Cut back on protein, no.

I was misunderstood. I agree. I said cut back, not eliminate protein. If someone is eating a lot of steak or burgers it should be easy to but that by 1/3 or 1/2 and not suffer much. Red meat protein is expensive and this is about saving money through behavior modification.

Regarding glucose and diabetes I'm fighting that and my CGM is instrumenting my numbers in order to cause me to modify my behavior accordingly. There are tradeoff. The best example I can think of is a bowl of steamed rice vs a bowl of fried rice. If I eat a bowl of steamed rice my CGM will spike to 200+, sometimes 250 and then retreat back to 100-115 within an hour or so. If I eat a bowl of fried rice (Chinese-style) it will spike to 150-160 and then retreat back. The trade off is obviously the oil/fat but it does attenuate the absorption and I've calibrated this with the blood test at the same time. I trade glucose health for cholesterol health in this case, assuming caloric intake is close. Otherwise, I could just be miserable and nobody wants that.