When I sold some retirement type products way back when, I would do calculations to show what people needed to save to “retire”. The amounts were so high when realistic investment returns and inflation were computed the resulting figure put people off the idea. They thought I was making it up when they could crunch the numbers themselves!
Creating a new income stream (or learning the skills to do so) now so you can work at home later in “retirement” will go a long way to minimize the “wage” shock of retiring by choice or through a “reduction in force”. Staying active helps your health too.
The process of “snowballing debt payoffs” is a good discipline that once mastered can make saving for retirement easier, but it’s best to have cash building up before you pay off all the debt so you won’t be tempted to go into more debt.
From Pilot Online
1. Don’t earn enough
2. Wants to pay off debts first (a good idea, but how many really are?)
3. Plan to catch up later
4. It’s too complicated
5. Living for today
Do you use any of these reasons? It’s a good article to read if you do.
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