Once You’re 40, the Reality of Retirement Smacks You in the Face

Oh crap! Saving for retirement is smacking me right in the face. It was so much easier when I was working full time. My 401 (k) contributions were deducted directly from my paycheck and my employer matched them. Since I’ve been unemployed, then self-employed for five years  – it’s definitely put a dent in my efforts to save for retirement. Are you a parent who decided to stay home while your children were young? How do you handle saving for retirement while you’re out of work? What’s the reality of retirement for you?

Earlier this month my husband and I took the “write down everything approach” to tackle our debts and assets. I knew the balance on my student loans, but I needed to know what his were too. The reality hit that we need to cut our expenses ASAP so we can start chipping away at our debt and saving more for retirement. Since I’m nine years older than him, retirement is directly in view if I want to retire at 65 (or sooner). It also occurred to me that A.J. will be in college in 13 years, so that’s a lot of major financial decisions and milestones we have on the horizon.

The plan?

Cut the cable. This will be harder for him than it is for me. My husband is an ESPN junkie. But I’m working to persuade him to get his daily sports fix from apps and downloads. I’m inspired by fellow Atlanta mom blogger Bernetta Style who cut the cord this summer and has no intentions of turning back. Coupon Divas also shared 13 Ways to Ditch Your Cable Company,  which includes suggestions to add [eafl id=”35253″ name=”Amazon Prime Trial” text=”Amazon Prime for $99 a year to stream video”], as well as get free two day shipping on products. We already have Apple TV so we can stream some shows and apps like YouTube from my Macbook and iPhone.

Move to a more affordable home. I’m in the depths of searching for the next home we’ll lease. It will definitely be less than our current home. We’ll have to adjust to a new neighborhood and stores, but the lower overall monthly cost for housing will help us a lot.

Plan for A.J.’s college savings. Considering how fast the first five years of his life flew by, we’ll be taking college tours momentarily. A.J. already has plans to save for his first car with his allowance. It’s up to us to make sure we can afford any college he’s accepted to – without the burden of paying for our own student loans at the same time.

Track our progress. One free tool I plan to use as we focus on our financial goals as well as retirement is GetWela.com.  I was invited to a focus group for this Atlanta start-up in 2014, then started following them on social media. GetWela allows you to connect your bank accounts, get free tools & recourses to grow them. See how you stack up against your peers. Chat with financial experts for free.

 

Comment below: Have you tried any online tools to track your family’s assets? What keeps you financially accountable?

I’ve shared other financial planning perspectives in “If Stay At Home Moms Got Paid a Salary” and “4 Financial Mistakes I Hope Our Son Avoids.”

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Once You’re 40, the Reality of Retirement Smacks You in the Face: http://t.co/ykxBLuHCNT via @MommyTalkShow pic.twitter.com/e3DU1JpSgW

— Joyce Brewer (@MommyTalkShow) February 9, 2015