Comments on: How to Know if You Are Saving Enough for Retirement http://wealthpilgrim.com/saving-for-retirement/ WealthPilgrim.com - A Journey To Self, Health and Wealth Fri, 10 Feb 2012 13:07:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Erik http://wealthpilgrim.com/saving-for-retirement/#comment-3859 Erik Tue, 02 Mar 2010 20:52:27 +0000 http://wealthpilgrim.com/?p=13460#comment-3859 I see you’ve been trying very hard to make something happen, and I’m guessing that stiff competition in the job market may be part of the problem. There are people with Masters degrees doing the work of lowly interns just to get a break these days! If this career field is what you really want, I would suggest continuing your search while you concentrate on piling up cash. If you’re working full-time plus an extra 10 – 15 hours, that ought to set you up pretty well while you pursue the career you really want. And what do you really want? I sense a little uncertainty in your answer “at least I think I want to get into hospitality”. What is it you hope to do eventually after you’ve worked your way up from front desk clerk? Finance, general management, accounting, real estate, etc? Many business fields need these skills, so perhaps you could gather experience in whichever field you want in another type of industry temporarily. While insider knowledge and connections are great, a good accountant is a good accountant whether he’s cut his teeth in manufacturing or hotel balance sheets. All of this to say is, can you find a way to “work your way up” and gain experience in the general skills of your profession without necessarily starting as an entry-level hotel employee? Neal has expressed his confidence in you, and from what I’m reading you sound like a person who will make it. Keep up the fight! P.S. Next month, tell us about the FOURTY letters you sent out. Stamps are cheap. I see you’ve been trying very hard to make something happen, and I’m guessing that stiff competition in the job market may be part of the problem. There are people with Masters degrees doing the work of lowly interns just to get a break these days! If this career field is what you really want, I would suggest continuing your search while you concentrate on piling up cash. If you’re working full-time plus an extra 10 – 15 hours, that ought to set you up pretty well while you pursue the career you really want.

And what do you really want? I sense a little uncertainty in your answer “at least I think I want to get into hospitality”. What is it you hope to do eventually after you’ve worked your way up from front desk clerk? Finance, general management, accounting, real estate, etc? Many business fields need these skills, so perhaps you could gather experience in whichever field you want in another type of industry temporarily. While insider knowledge and connections are great, a good accountant is a good accountant whether he’s cut his teeth in manufacturing or hotel balance sheets. All of this to say is, can you find a way to “work your way up” and gain experience in the general skills of your profession without necessarily starting as an entry-level hotel employee? Neal has expressed his confidence in you, and from what I’m reading you sound like a person who will make it. Keep up the fight!

P.S. Next month, tell us about the FOURTY letters you sent out. Stamps are cheap.

]]> By: Neal@WealthPilgrim http://wealthpilgrim.com/saving-for-retirement/#comment-3857 Neal@WealthPilgrim Tue, 02 Mar 2010 16:19:18 +0000 http://wealthpilgrim.com/?p=13460#comment-3857 I think Erik's advice is great. I can vouch for Justin....he has all the qualities of a very successful person and I KNOW he's going to do fine. .-= Neal@WealthPilgrim´s last blog ..<a href="http://wealthpilgrim.com/saving-for-retirement/" rel="nofollow">How To Know If You Are Saving Enough For Retirement</a> =-. I think Erik’s advice is great. I can vouch for Justin….he has all the qualities of a very successful person and I KNOW he’s going to do fine.
.-= Neal@WealthPilgrim´s last blog ..How To Know If You Are Saving Enough For Retirement =-.

]]> By: Erik http://wealthpilgrim.com/saving-for-retirement/#comment-3856 Erik Tue, 02 Mar 2010 15:54:04 +0000 http://wealthpilgrim.com/?p=13460#comment-3856 Justin, maybe you should drop the freelance work for now and just pick up an extra job that pays ok and you find interesting enough to not be completely bored and/or hating it. When you're young and debt free, an extra $100 - $200 a weeks isn't too hard to earn. Maybe something that gets you involved with people, like a courier-for-hire or cooking meals for people who are too busy (if that's a skill you have). Lots of service oriented self-employment opportunities since people are so busy these days. If you could tuck away an extra $50 a week into an emergency fund and $50 a week into a growth-stock mutual fund account, you'd have a nice investment and a "rainy day" fund built in no time. And do look for opportunities to expand your skills into a different job. Sometimes, though when you're starting out, you have to pay your dues for a few years so that people will see what you are worth. Most mega-rich people started out sweeping floors or doing menial work. They learn the business, build a reputation, and keep going upward. You can too! Justin, maybe you should drop the freelance work for now and just pick up an extra job that pays ok and you find interesting enough to not be completely bored and/or hating it. When you’re young and debt free, an extra $100 – $200 a weeks isn’t too hard to earn. Maybe something that gets you involved with people, like a courier-for-hire or cooking meals for people who are too busy (if that’s a skill you have). Lots of service oriented self-employment opportunities since people are so busy these days.
If you could tuck away an extra $50 a week into an emergency fund and $50 a week into a growth-stock mutual fund account, you’d have a nice investment and a “rainy day” fund built in no time.
And do look for opportunities to expand your skills into a different job. Sometimes, though when you’re starting out, you have to pay your dues for a few years so that people will see what you are worth. Most mega-rich people started out sweeping floors or doing menial work. They learn the business, build a reputation, and keep going upward. You can too!

]]> By: Neal@Wealth Pilgrim http://wealthpilgrim.com/saving-for-retirement/#comment-3853 Neal@Wealth Pilgrim Tue, 02 Mar 2010 04:59:20 +0000 http://wealthpilgrim.com/?p=13460#comment-3853 You are still a young man ( do you hear Tower of Power?) so I'd put the $100 in a growth mutual fund. You have a very long time horizon so low prices now are actually to your advantage. Start w/$100.....work it up to $200....etc etc. Start now....you'll be building the right habits and it will pay off BIG time. You are still a young man ( do you hear Tower of Power?) so I’d put the $100 in a growth mutual fund. You have a very long time horizon so low prices now are actually to your advantage. Start w/$100…..work it up to $200….etc etc. Start now….you’ll be building the right habits and it will pay off BIG time.

]]> By: Neal@Wealth Pilgrim http://wealthpilgrim.com/saving-for-retirement/#comment-3852 Neal@Wealth Pilgrim Tue, 02 Mar 2010 04:57:04 +0000 http://wealthpilgrim.com/?p=13460#comment-3852 Up to you.....I am closer to collecting that you are. I do think it will be here but I believe they'll push the age at which you are able to collect. Stick it to the man by living a long time Karyn! Up to you…..I am closer to collecting that you are. I do think it will be here but I believe they’ll push the age at which you are able to collect. Stick it to the man by living a long time Karyn!

]]> By: LeanLifeCoach http://wealthpilgrim.com/saving-for-retirement/#comment-3851 LeanLifeCoach Tue, 02 Mar 2010 02:28:51 +0000 http://wealthpilgrim.com/?p=13460#comment-3851 Neal - By all means, Lean is fine. I am going to get to $3 million. I don't know entirely how, but I am. If I don't there is no point in retiring. Justin - It's tough when you don't have a large income but it is always possible to save more. It's not easy and not fun but if we are honest with ourselves, most of us live a lot more luxurious than we recognize. It's all about determination and taking the time to have a long-term perspective. $100/mo will add up big over a lifetime, add in compounding interest and it is a small fortune. Add to that as your career progresses and before you know it you have a nice nest egg. I didn't begin my journey until the wife and I suffered a 50% cut in income and since we have gone from 5 digits in debt to the multi 6 digits in assets. It is doable! .-= LeanLifeCoach´s last blog ..<a href="http://eliminatethemuda.com/2010/03/ban-antibiotics-and-save-money/" rel="nofollow">Ban Antibiotics and Save Money</a> =-. Neal – By all means, Lean is fine. I am going to get to $3 million. I don’t know entirely how, but I am. If I don’t there is no point in retiring.

Justin – It’s tough when you don’t have a large income but it is always possible to save more. It’s not easy and not fun but if we are honest with ourselves, most of us live a lot more luxurious than we recognize. It’s all about determination and taking the time to have a long-term perspective. $100/mo will add up big over a lifetime, add in compounding interest and it is a small fortune. Add to that as your career progresses and before you know it you have a nice nest egg.

I didn’t begin my journey until the wife and I suffered a 50% cut in income and since we have gone from 5 digits in debt to the multi 6 digits in assets. It is doable!
.-= LeanLifeCoach´s last blog ..Ban Antibiotics and Save Money =-.

]]> By: Justin http://wealthpilgrim.com/saving-for-retirement/#comment-3848 Justin Mon, 01 Mar 2010 21:56:13 +0000 http://wealthpilgrim.com/?p=13460#comment-3848 No debt, and yes, I could probably stick $100 per month in an account. Is putting away $100 a month now going to do anything for me in the long run? What account do i put it in? I don't have enough to really qualify for any of the "upper tier" accounts, and at the interest rates of the lower tiers, such as my savings account i have right now, I am just as good putting the 100 bucks in a mattress. No debt, and yes, I could probably stick $100 per month in an account. Is putting away $100 a month now going to do anything for me in the long run? What account do i put it in? I don’t have enough to really qualify for any of the “upper tier” accounts, and at the interest rates of the lower tiers, such as my savings account i have right now, I am just as good putting the 100 bucks in a mattress.

]]> By: Neal@Wealth Pilgrim http://wealthpilgrim.com/saving-for-retirement/#comment-3847 Neal@Wealth Pilgrim Mon, 01 Mar 2010 21:50:19 +0000 http://wealthpilgrim.com/?p=13460#comment-3847 Justin, First thing, do you have any debt? Is it possible to start on a plan where you just stick $100/month in an account for your future BEFORE YOU DO ANYTHING ELSE? Pay yourself first so to speak. Is this possible? If not, how about $50or $25. Something to get you started... Justin,

First thing, do you have any debt?

Is it possible to start on a plan where you just stick $100/month in an account for your future BEFORE YOU DO ANYTHING ELSE? Pay yourself first so to speak. Is this possible? If not, how about $50or $25. Something to get you started…

]]> By: Justin http://wealthpilgrim.com/saving-for-retirement/#comment-3846 Justin Mon, 01 Mar 2010 21:33:01 +0000 http://wealthpilgrim.com/?p=13460#comment-3846 I am 24, and nope, I am debt free. My only debt is my revolving monthly credit cards, which are all paid off in full every time. I work a 9-5 which I dont enjoy all that much, and have been looking for another 9-5. In the evenings I had been doing a good amount of freelance work, but found that I was doing lots of work for little pay...the opposite of how my freelance work should go. I do internet marketing and graphic design, Currently working for a power sports dealership full time. I am not big into power sports, thus why I dont really love the job. I make enough money to pay all my bills, and thought I was saving some, but I learned quickly that the savings can disappear quickly with one medical incident, one home disaster, ect. And at the rate I was saving, if something were to happen again, I would be in trouble. I think a large part of my problem is that I am in a position with little opportunity for growth, I am not really expanding my skillset in my current position, and am having a very tough time finding something else out there. As for planning my financial future, at my age, one of the things I would like to look at is future income. If I am to stay at the company I am at, I don't see my salary ever really going up enough to be able to save. That scares me when I am having such a hard time finding work elsewhere. I am 24, and nope, I am debt free. My only debt is my revolving monthly credit cards, which are all paid off in full every time. I work a 9-5 which I dont enjoy all that much, and have been looking for another 9-5. In the evenings I had been doing a good amount of freelance work, but found that I was doing lots of work for little pay…the opposite of how my freelance work should go.

I do internet marketing and graphic design, Currently working for a power sports dealership full time. I am not big into power sports, thus why I dont really love the job. I make enough money to pay all my bills, and thought I was saving some, but I learned quickly that the savings can disappear quickly with one medical incident, one home disaster, ect. And at the rate I was saving, if something were to happen again, I would be in trouble.

I think a large part of my problem is that I am in a position with little opportunity for growth, I am not really expanding my skillset in my current position, and am having a very tough time finding something else out there.

As for planning my financial future, at my age, one of the things I would like to look at is future income. If I am to stay at the company I am at, I don’t see my salary ever really going up enough to be able to save. That scares me when I am having such a hard time finding work elsewhere.

]]> By: Erik http://wealthpilgrim.com/saving-for-retirement/#comment-3845 Erik Mon, 01 Mar 2010 21:23:30 +0000 http://wealthpilgrim.com/?p=13460#comment-3845 Yes, Karyn, that's the issue I was getting at. I think probably most people in our generation (I'm 34) who read personal finance blogs are probably going to be ok. But many people in their 50s and 60s now grew up with the 'government will provide for me' or 'my company pension will provide for me' retirement plan. It's sad to see where that is landing so many people. I don't think it's necessarily a bad thing. Think about the last 10,000 years or so of human history. Often times families share a house among 3 or 4 generations. Only recently have we converted to our modern ways of grandma's house, parent's house, kids house...everyone has a huge house. Well, maybe your house like mine is not huge, but I could put my parents up in the guest room downstairs if push came to shove. Justin, how old are you and what are your time commitments like? Are you in debt up to your ears? Why are you 'just getting' by? Provide us some details and maybe we can think of some suggestions? Yes, Karyn, that’s the issue I was getting at. I think probably most people in our generation (I’m 34) who read personal finance blogs are probably going to be ok. But many people in their 50s and 60s now grew up with the ‘government will provide for me’ or ‘my company pension will provide for me’ retirement plan. It’s sad to see where that is landing so many people. I don’t think it’s necessarily a bad thing. Think about the last 10,000 years or so of human history. Often times families share a house among 3 or 4 generations. Only recently have we converted to our modern ways of grandma’s house, parent’s house, kids house…everyone has a huge house. Well, maybe your house like mine is not huge, but I could put my parents up in the guest room downstairs if push came to shove.
Justin, how old are you and what are your time commitments like? Are you in debt up to your ears? Why are you ‘just getting’ by? Provide us some details and maybe we can think of some suggestions?

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