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After reading 2 articles published the same day:
- One about stealing from your own retirement;
- The other on starting a retirement plan while you are young.
…I have to wonder if Americans aren’t being pushed to start saving too soon.
I realize this sounds a bit crazy. But for many, saving at all costs means running up credit cards for basic living expenses.
What is wrong with this picture?
Does it do you any good if you have been saving for retirement for decades, only to find out that your debt load is higher than your savings? This really does happen.
Unless your employer is matching your savings — and even in some cases where they are — if you are paying for living expenses with credit you, are throwing away more money than you are saving.
We really need to start concentrating on first things first. First, you need to make sure current living expenses are covered. This may mean working more. This may mean looking for more modest living conditions.
Next, you need to pay off all of your debt like your credit card and cars. Credit interest adds up much faster than savings interest. When you are in a position to pay for your current expenses, and you have no credit debt hanging over your head, then, and only then is it time to start putting away money for retirement.
I have been a certified tightwad striving for financial freedom since I became pregnant with my first child — and I decided to find a way to stay home with him full-time. I enjoy sharing my personal experiences in my journey back to financial health and planning for a future — which will include sending 2 kids to college and early retirement.