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No one would argue with the idea that life should be enjoyed. Between outings with family and friends, vacations and other perks that make life more fun, it’s essential to both your mental and physical health to kick back and relax once in awhile. However, if all of this fun is coming in between you and your retirement savings, it’s time to cut back on a few money-draining “sins” – and watch as your retirement fund blossoms into an outright nest egg!
Drinking. Nothing’s wrong with a few social drinks here and there; yet a drinking habit can be one of the most draining expenses on your resources – money which could very well be put towards your 401(k) retirement fund or any savings and investments. Look at how much you’re spending on drinks, even if you enjoy a cocktail or two during happy hour. $3 a drink can quickly add up over time; and with the average American enjoying two beverages a day, this culminates into over $3,200 a year. If put into a savings account earning 6% interest, that money can blossom into over $200,000 grand in just 20 years.
That $3 can go a long way towards netting you a comfortable Florida retirement!
Smoking. Not only are cigarettes bad for your health; they’re downright draining on your financial resources. Assuming a person smokes a pack a day, this habit adds up to a hefty $2,000 at the end of the year (assuming packs are just over $5). Once again, this is money that’s better used in your savings and investments.
If you quit drinking and smoking, financial experts claim you can accumulate up to half a million in retirement savings in about 20 years. For those who’ve gotten a late start on retirement, this can be an awfully tempting figure!
Gambling. Taking a trip to Sin City now and then is fun – gambling away a potential retirement fund isn’t as entertaining. If you think that winning the lottery or jackpot is your best bet to land a comfortable retirement, try putting your gambling money towards your 401(k) retirement fund instead. Sure, it’s not as fun as the thrill of gambling – but when you’re living a comfortable retirement years from now, you’ll hardly remember missing out on the momentary thrill of purchasing a lottery ticket.
For more information on smart retirement planning, visit www.kenhimmler.com, the IRA and 401(k) experts!
Authored by Kenneth Himmler, Sr.