What do you think of this phrase, “Save for retirement even if it means living like a pauper”? Does it resonate with you? This is a common phrase millennials and Zoomers use when they ask about frugal living. Living like a pauper just so one can retire as a rich person does not augur well with most people in this age and era.
It may sound like solid advice, but it is not a comforting one. This begs the question, then: Is saving for retirement a fool’s bargain? Many people do not seem to agree with this. With rising costs of living, you are asking young people to trade in having a good time now so that they can have marginally more money when they retire.
They have a different approach: investing in their health now so that they can still have a purpose when they grow old. Here’s what other people on social media thought about this topic.
You Will Have a Terrible Life
Money is the only protection we have at an old age. If you do not save for retirement, you are setting yourself up for a life of chaos and agony. You will need to work until your body gives out at an old age.
Some Companies Will Force You To Retire
What happens when your company forces you to retire, and you have not built a safety net? Most companies do not like to hire people who are approaching retirement because they invest in training them and would like to get maximum value for their money. Some people are forced to do drugs in old age to force their bodies to work.
Money Saved for Retirement Is Not Marginal
Others urge millennials not to think they will have marginal amounts of money when they retire in the future. No matter how little the savings are, the compounding effect sets in, and if the interests are good, you could end up with a very significant amount in the future.
Most Young People Do Not Like the Idea of Saving
They think they are being deprived. Others do not have enough to save, and since they also want to have leisure, it is an all-or-nothing situation.
Do Not Give Away Free Money
Most companies match their employee contribution to their retirement kitty. If you do not save, you will be losing free money. Sometimes, you can access loan facilities from your savings.
Happiness Is Not Linked To Spending
You do not have to spend money to enjoy life. You can find other less-wasteful ways of spending time and channel what you save towards your retirement kitty.
You Can Still Save and Be Healthy
The misconception that you cannot save and be healthy while young is common and misleading. Eat healthy, exercise, and find better ways to stay healthy that do not require spending all your money.
How You Save Depends on Your Financial Situation
If you are rich or earning a good income you may not have a problem putting money aside for your retirement. When you are poor, your main focus is survival. At this rate, focus on making more money instead of saving and investing. When your income increases, start saving.
Have a Good Work-life Balance
Do not forget to have time for your family because you are working too much. Those social connections are important. Adopt a good work-life balance and get the best of both worlds.
Start To Develop a Saving Habit
Start small. Start young. Develop a savings culture. Do not let a freestyle lifestyle eat away at your income. Make up for your lower savings by saving more in your 40/50s when your financial situation improves.
Reduce Your Taxable Income
Your taxable income reduces when you contribute more to the 401k. It also increases your tax refund.
It Is Easier Being Young and Poor Than Being Old and Poor
You can make mistakes when you are young and bounce back. Cultivate a saving discipline and put something small away every time you get paid. Resist the temptation to spend money on something you cannot afford when the nest grows bigger.
Do Not Miss on Experiences
Since no one knows about tomorrow, do not miss on experiences that add value to your life. Socialize, travel, and enjoy yourself while creating a financial cushion for old age.
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This article was produced and syndicated by A Dime Saved.