Behind On Saving for Retirement? Suze Orman Says To Get Honest With Yourself About These 2 Things
Written by
Laura Bogart
Edited by
Kristen Mae
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If you’re like most people nowadays, you’re probably feeling a financial crunch. You know you should be saving more for retirement, but that feels distant, and your high grocery bills and credit card debt are in the here and now. And you’re tired of hearing that if you would only give up avocado toast, you’d instantly have enough money to retire on.
Suze Orman knows better. Reflecting on a CNBC survey that found less than half of all workers feel even cautiously optimistic about having a secure retirement, Orman reflected that the results made her feel “sad and concerned.”
“I am fully aware that for many households, the lack of optimism is not because of bad choices — spending too much, borrowing too much — but more a function that the cost of just getting by each month can make it hard to save more for retirement,” she wrote.
But even as she acknowledges that times feel tough through no fault of your own, Orman says it’s still time to buckle down and get back on track with retirement savings. Fortunately, she has tips for doing just that, but it starts with getting honest with yourself.
Are You Really Prioritizing Your Needs Over Your Wants?
While all your financial woes can’t be blamed on your love of pumpkin spice lattes, getting your fix at the drive-thru every day at least once a day — well, it adds up. And you can’t exactly retire inside a Starbucks to-go cup like the little old lady who lived in a shoe.
To avoid letting your potential retirement savings go down the drain, Orman issued a challenge: “No lip service, or casual commitment. I want you to carefully stop yourself every time you are about to spend money and ask yourself: Is it for a need or a want?”
For three months, be ruthless in asking yourself whether you really need to spend money on something or if it’s just to keep up with the Joneses. If your kids come begging for concert tickets or the latest smartphone, say no — no matter how hard it may be. You owe your children love and support, not front-row seats to the hottest show in town.
Don’t let yourself off the hook, either. If you’re loading up your grocery cart with brand-name organic food, maybe it’s time to consider reaching for a cheaper store brand or shopping at more budget-friendly outlets. Orman suggests choosing the least expensive version of almost any major purchase, including cars, without sacrificing safety or quality.
Her mantra: “Every $10, $20, $50 matters.”
Are You Truly Saving All You Can?
Orman has a question about your savings — and you can probably guess what it is. Are you saving everything you possibly can? The answer is likely no. She encourages you to increase your savings wherever you possibly can.
“If you are currently saving 6% of your salary in a retirement account, change it to 7%, and set a calendar alert to bump that to 8% in six months,” she wrote.
Trying to pay down that credit card balance? Add another $50 a month to the payment. Orman said that your goal shouldn’t be moving mountains all at once but to make small shifts that bring you closer to your destination. Establishing positive saving habits is key to retirement security.
Saving for retirement can feel like running on a hamster wheel, but if you want to break out of the same old cycle, Suze Orman has tips to help you turbocharge your retirement savings. Make sure you’re spending only on needs, not wants, and at the same time, save, save, save as much as you can. It’s really that simple.
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