The national stress is often mirrored in personal finances. Too many Americans are approaching retirement only to find they don’t have the resources to match their expectations for the “golden years.” Now it’s too late to cut expenditures and put more into savings. The alternative is to lower expectations and live more frugally than they had planned.
For those who still can affect the future, there are some common-sense steps that will ease the challenge when retirement arrives:
Savings: Put a percentage of your income into savings and investments to build a cache for the future. The more generous you are to yourself, the greater the expectation you can have of being able to control your life as you age. Recognize the difference between needs and wants and act accordingly.
Housing: In that spirit, consider housing. You may want a mansion, but you need secure shelter for your family. Opting for a smaller home that does not consume a large percentage of your resources will give you more leeway in the future. Consider all the factors, including down payment, interest, mortgage payments and upkeep over the time you expect to live in the home, then decide if luxury now will offset a skimpy retirement fund.
Possessions: Consider the mental costs of owning many “things.” The care and keeping of many possessions can cause considerable stress, which can in turn manifest itself in physical ailments, psychiatrists say. Count the cost of the time you may spend looking after, protecting and replacing excess possessions. An “attitude of gratitude” rather than obsessive collecting will help you toward a balanced life.
Health: Look after your physical health as a foundation for your retirement. Living long but not well is not a good option. Two in three Americans are overweight or even obese. This contributes to increases in such complaints as diabetes, heart disease and some cancers. Surgical remedies for obesity have surged from 13,386 operations in 1998 to 220,000 in 2009.
Overeating is the simple underlying factor in overweight, compounded by lack of exercise. A huge increase in the number of high-calorie foods and drinks consumed by Americans is part of the problem, abetted by too-large servings, according to health experts. They advise eating about half what a restaurant serves. Reduced trips to eateries and an increase in home-cooked meals will be easier both on the budget and on the calorie intake.
In summary, living lean involves having money in reserve, providing for a reasonable retirement and putting needs before wants. It’s an approach to living that can result in a less stressful, more satisfying present and the prospects of a better future.