{"id":267,"date":"2018-12-16T04:35:00","date_gmt":"2018-12-16T04:35:00","guid":{"rendered":"http:\/\/www.personalfinanceafterfifty.com\/retirementfinancialmanagement\/?p=267"},"modified":"2018-12-16T04:35:00","modified_gmt":"2018-12-16T04:35:00","slug":"personal-finance-after-50-why-49-americans-have-nothing-saved","status":"publish","type":"post","link":"http:\/\/www.personalfinanceafterfifty.com\/retirementfinancialmanagement\/uncategorized\/personal-finance-after-50-why-49-americans-have-nothing-saved\/","title":{"rendered":"Personal Finance After 50 – Why 49% Americans Have Nothing SAVED"},"content":{"rendered":"

There are many Americans who are although in their 60s But have nothing in their savings and may have to work even after their official retirement, to meet their expenses, as it is very difficult to live a comfortable life after retirement, only on the Social security amount. If you are not conscious of your expenses, you may also be one of them. But in this regard you are not alone. According to a new survey from GoBanking Rates, twenty-eight percent of Americans have nothing in their savings accounts and another twenty-one percent don\u2019t even have a savings account<\/span><\/p>\n

  <\/span><\/span>The Obsessed Thinking<\/b><\/span> : –<\/span><\/p>\n

In this regard, the people have various reasons to forward, like ;-<\/span><\/p>\n

–\u201d I get financial security. I don\u2019t get the obsession with retirement<\/span><\/p>\n

— \u201c My great grandfather worked until he died, so did my grandfather. I hope same happens with my father\u201d.<\/span><\/p>\n

  These and similar thinking is self-defeating absurd thinking, But the fact is that a lot of people are not able to work until they die, even if they want to do so. One must remember that this is not the economy of their grandfather\u2019s era. The economic world has undergone a sea change, globally, in the past few decades, and so our needs, expectations, requirements and commitment<\/span><\/p>\n

     Further such people forget to account for the fact that people are living much longer now after retirement, may be about 25 to 30 years,whereas, it was about 10 to 12 years earlier.,yet getting disabilities as they age at virtually the same rate as before. The average life of a male is now 78.6 years and it is 82.4 years for a female. The end result is that much of the population spends many of their elder years unable to work. You should not rely on being active and productive until your last day and then suddenly dropping dead. Working is something that can always be done like doing side jobs or operating one\u2019s own business, but these things wouldn\u2019t be viable sources of income. If the money comes in, great. If not, you should always have something to depend upon.<\/span><\/p>\n

 <\/span> Common Money Mistakes You May Make<\/span><\/b> : –<\/span><\/p>\n

 The common financial mistakes which is generally made by the people.are as under : –<\/span><\/p>\n

—<\/span> Not Planning <\/b>: – Most of the people procrastinate . They have deadlines and then deadlines extensions. You can allow your credit-card debt to accumulate. You can pay higher taxes due to not planning your finances and also not setting your financial goals..<\/span><\/p>\n

—<\/span>– Overspending :<\/b> –  As you have not set your financial goals and planned your finances, you may be tempted to spend on luxuries, vacations, restaurants and other such non-essential activities. Most Americans don\u2019t plan for future and so don\u2019t save much for their life after retirement.<\/span><\/p>\n

— <\/span>Buying With Consumer Credit<\/b> : – Buying on credit encourages you to spend more than you can really afford. Carrying the credit-card balance, month-to-month, means that your future earnings are spent for debt repayment. You must know that most companies charge between 18- 21 percent on the credit-card balances.<\/span><\/p>\n

— <\/span>Delaying Saving For Retirement<\/b> : – Some people may be under the illusion that they may work till their end and would never retire, and so why to save for life after retirement. But, in fact this may not happen. Your health may not allow you to actively work. Therefore, the longer you wait to start saving for retirement, the harder reaching your goal will be, to have a comfortable life after retirement.<\/span><\/p>\n

— <\/span>Not Doing Your Homework <\/b>: –  With all the different financial products available, making informed financial decisions has become a difficult task. To avoid confusion, you have to shop around, read reviews, check references and do proper homework to avoid financial mistakes, which may land you in problems.<\/span><\/p>\n

—<\/span>Making Decisions Based On Emotions<\/b> : – This is a common reason for landing most of us in financial overspending. You may undergo major life changes or you may feel under pressure and make decisions under emotions or distress. <\/span>AVOID IT<\/b>. Take your time and keep your emotions out of picture while taking key financial decisions..<\/span><\/p>\n

— Exposing Yourself To Catastrophic Risk<\/b> :  People without a savings reserve and support network can end up homeless. Many people lack sufficient coverage to replace their income. You\u2019re vulnerable if you and your family doesn\u2019t have insurance to pay for financially devastating losses.-<\/span><\/p>\n

—<\/span> Focussing Too Much On Money<\/b> : – Money is not the first- or even -second- priority in happy people\u2019s lives. Your health, relationships with family and friends, career satisfaction and fulfilling your interests are very significant and we must work for them.<\/span><\/p>\n

 <\/span> Developing GOOD Financial Habits<\/span><\/b> : –<\/span><\/p>\n

Various studies have indicated that Americans are by and large financially illiterate. The vast majority of survey respondents have \u201cfalling\u201d scores- meaning that they answered less than 60 percent of the questions correctly. Most Americans don\u2019t know how to manage their personal finances because they were never taught how to do so, neither in schools nor at home by their parents.<\/span><\/p>\n

 But if you understand the basic concepts , regardless of your income, you can make your dollars stretch farther, if you practice good financial habits and avoid mistakes. In fact, the lower your income, the more important it is that you make most of your income and savings.<\/span><\/p>\n

 Personal finances involves much more than managing and investing money. It also includes making all the pieces of your financial life fit together. You must strive to overcome temptations and keep control of your money rather let your emotions and money rule you.<\/span><\/p>\n

  <\/span>CONCLUSIONS <\/b><\/span>: –<\/span><\/p>\n

Money problems can be fixed overtime with changes in your behaviour. We have to be alive to the situation and face the reality. Day-dreaming is not going to help you to meet your goals, short-term as well as long-term. You must overcome the lure of easy credit as many attractive reasons would be forwarded by the dealers. You must have a strong desire to live within your means and discuss openly the details of your income with your spouse and grown -up children, so that they are aware of the facts and avoid having unrealistic desires. Wrong financial planning at your age of 50-55 years may result into serious financial and family problems in your future retired life, which is a fact and not a fiction.<\/span><\/p>\n

 <\/p>\n

    . <\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

There are many Americans who are although in their 60s But have nothing in their savings and may have to work even after their official retirement, to meet their expenses, as it is very difficult to live a comfortable life after retirement, only on the Social security amount. If you are not conscious of your … <\/p>\n

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