How do you save for retirement when you're living paycheck to paycheck?

Our income is less than $20k a year for a family of 7.

Asked by Sarah

2 Answers

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Answered by Paul Carag, Financial Adviser in Renton, WA
Sarah, that's a great question and not an easy one to answer. Ultimately, saving for retirement requires you to put away dollars for tomorrow that you're able to do without today. Every little bit will help so without knowing all of the details of your situation, I would tell you that extra income would be key to making that happen. Now, if you know that you'll be in this same income situation for the rest of your lives, then I can say beyond a shadow of a doubt, you'll need to figure out a way to bring in more income so you can put it away for retirement. Otherwise, if you foresee that you'll be making more income later, then you should plan as much as possible to act like you're only making your current income and put the extra income away. It also depends on your goals and your ages. If you want to explore this further, I'll be happy to help you. Let me know. | 09.13.15 @ 00:26
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:31
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi Sarah.
Lot's of folks are in this situation.

My friend Jack Bogle (formerly with Vanguard) puts it like this:
People were retiring with great plans and living like happy campers
Now they are barely able to keep up and living like homeless campers.

Start by Investing in yourself... Be a business owner and not a consumer. Leverage your resources. What is something that you can do better than anyone else and you love to do it? Now, let's allow others to pay you to provide this service. Make certain that your income exceeds your expenses or it's not worth your valuable time and talent.

While your thinking about the above. Check out some of the federal, state, local, charitable, programs that may be able to help you.

Bottom line is that you need both income now and later and you also need to spend less than what you earn especially later.

Feel free to contact me directly to discuss further.

It's not what you make, It's what you keep that determines your lifestyle.
| 03.27.16 @ 21:22
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$commenter.renderDisplayableName() — {comment} | 12.06.16 @ 14:31
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