While you may be powerless to the volatility of the current marketplace, cutting back on discretionary spending is a good way for Grainger employees to remain on firm ground when it comes to retirement savings. Despite market swings, consumer confidence is up, along with dining out, Starbucks stops and weekend trips to the mall. And yet many Americans state they are not prepared for retirement. The good news—just a few nips and tucks in your budget can really save you big bucks in the future.
Have you tracked your spending habits? ThinkAdvisor.com recently highlighted research to demonstrate how “simple costs add up.” What they found was that Americans are spending at a rate that will prevent them from enjoying retirement. They highlighted a recent study conducted by Personal Capital to understand consumer spending, and how people in 50 states prioritize retirement contributions and other expenses.
Even after the economic turmoil of our recent past, approximately 60% of those polled stated they were “not prepared for a bear market, and had taken no precautionary steps for a potential economic downturn.” The study also delved into the rate of spending among Americans to maintain their current cost of living, anonymously analyzing bank accounts of its dashboard users to determine the spending trends based on 148, 225, 107 transactions occurring in 2015.
What did they discover? Across the board, by just cutting back on our daily spending habits, the average American could boost their retirement savings and improve their financial outlook during their golden years. For example, the study uncovered that most of us like to dine out 14 times per month, significantly impacting our food budget. And the results did not vary drastically by age. While younger diners (20-30 years old) spend 60% of their monthly food budget on restaurants, 30-50-year-olds hovered somewhere just above 50%.
If you’re a Grainger employee struggling to meet your retirement goals, you may want to start with your own budget. Small changes to your lifestyle could, in fact, really help you find that extra cash you’ve been looking for to prepare for your retirement. Now, more than ever, the adjustments you make in your spending habits could prepare you for a rocky road ahead, as can a reputable wealth management advisor. The investment advisors at mooneylyons.com are here to help, offering consultations as well as information on how to pursue all of your retirement goals.