You love spending money lavishly to enjoy all the luxuries life has to offer. The problem is you’re getting further and further in debt and have nothing to show for your well-paid work except closets of clothing, or the head chair at a table at your favorite restaurant or lounge where you regularly pick up the tab.
When Divas and Dapper Dans realize that they’re not 49 anymore, how do they suddenly change course and start to invest for retirement? How can anyone fund a late-in-life nest egg without a lot of pain?
Do you have to pull the plug on everything you love?
No! Simply doing less of what you like leaves leftover $$$ to save and invest for the future.
Dining out. You love the lifestyle of dining out four or five times a week. You deserve a break after a demanding day at work, but your restaurant habit is starving your savings. Even without a drink or two, eating dinner away can easily cost $25 per person. You could skip a night or two and stop at a deli on your way home to satisfy your appetite for half the price. If you take home a bottle of wine instead of paying $8 a glass for drinks elsewhere, you could easily save $100 or so a month to invest for retirement.
Manicures and Pedicures. So, you won’t go out in public without a spa manicure – pedicure? Don’t give up pampering altogether. By setting appointments every six weeks instead of each month, you save $45 a clip (including tip) to add another $135 a year to your IRA. Your nail polish will last longer if you choose clear, neutral or light colors that keep chips and scratches hidden from human scrutiny.
Travel. At least five months before your next trip, start looking online for bargain-rate flights and hotels. Don’t settle for the first options you see. Booked months ahead of time, hotel rooms can often be had for half the price. Two months out is standard for the best airfares, but any time could produce a deal. Airlines change prices often to pump up passenger numbers whenever there’s a lull. To be sure, you’ll pay top dollar if you wait until the last minute. Be diligent, and you could save another $500 each trip.
Renting for leisure. How often do you really go sailing, use your motor home or need a high-end vehicle? Renting, vs. buying, a sailboat or luxury camper is likely to keep thousands in your coffer to save. Renting could cost less than paying for storage for pleasure crafts rarely used. Hire a limo or lease a Lexus for special occasions. It’ll make you wealthier than you look, driving first-class to an over-the-top event.
Manage Your Money . . . financial facts for a brighter future provided by Advancd Asset Management LLC
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