If you’re a baby boomer woman and you feel like you’re behind in your retirement savings, you are not alone.According to The Allianz Women, Money and Power Study (2007) , 62% of women wish they had done more to prepare for their retirement. More than half (55%) wish they had saved more money and had started saving sooner.Women will most likely outlive their male counterpart, which means that the likelihood of women being on their own at some point in their lives is quite high.
Longevity is the biggest financial risk women face in retirement.Because of the longevity factor alone, we women need take charge of our finances and save like crazy.If you are one of those women who earns enough money to more than cover your expenses, yet somehow you get to the end of the month with nothing left over and nothing put into savings then this money tip is especially for you.
Here’s a MONEY TIP for you: Set a lifestyle ceiling on your expenses.
One way to find more money to save for retirement is to set a lifestyle ceiling on your expenses. Your lifestyle ceiling is the amount of money you allow to go out for expenses, debt payment, incidentals and splurging.Related: Why Women Need to Be a Partner in All Financial Decisions
Related: No One Will Take Better Care of Your Money Than You
Decide the amount of money you will allow yourself to spend each month to cover your expenses. That’s your lifestyle ceiling.Then make a commitment that you will not spend anything over your lifestyle ceiling amount – NO MATTER WHAT.Even if you get a raise, a bonus or unexpected income. From now on, that all goes into your retirement savings.I believe women need to take their future financial security and retirement more seriously. We women need to be saving like crazy. It’s never too late to get started, and the sooner you do, the better.