According to financial advisor Sandra Spalding of Cleveland’s Spalding/Pitts, the average American businessperson verging on retirement has amassed a savings of just $213.
“Assuming one lives 25 years into retirement that’s just $8.52 per year,” she says. “Even if one closely watches expenses, it’s probably not going to be enough.”
Spalding believes that a nest egg of at least $258 is necessary in order to live comfortably, which means most Americans need to save an additional $45 by the time they retire.
“People can do it if they put their minds to it,” says Spalding. “The key is discipline.” She offers these five tips:
- Start putting money aside. In short, don’t spend everything you make. “This is a concept I call ‘saving,’” says Spalding. “And you’ll be surprised, that money can add up.”
- Try to make more money. If you’re earning $25 per hour, for instance, try to get a job that pays $25.25 – or more. “The more money you make,” says Spalding, “the more you’ll be able to save.”
- Look for deals on money. Some people are willing to sell their money for 50 cents on the dollar, particularly when it comes to those hard-to-spend $100 bills. Check the classified ads and eBay, Spalding recommends.
- Buy a whole bunch of lottery tickets. “Most people don’t get this concept and buy just one or two,” says Spalding. “But research shows that the more you buy, the more likely you are to win.”
- Short your income tax payment by $5.00 for nine years. According to Spalding, the IRS rarely comes after people for anything under $6.00.
