Find Out How Your Dream Car Can Ruin Your Retirement Plans
People usually work really hard on their chosen careers, so they could live a comfortable life as well as provide for their families. Eventually, everyone has to retire and to be able to do that, one must be enough to continue living. There is social security which will eventually help everyone, but people still need to have enough money saved up, so they could live a comfortable life.
Unfortunately, only a small percentage of Americans are saving for retirement. Most of the reasons are because of debts that still need to be paid off. It was revealed on research that most Americans spend their money on their cars, that it is what stops them from saving money for retirement.
Postponing Retirement For Your Car
Every single month, a huge number of Americans pay an average of $523 for a car payment and the average amount borrowed to get brand-new ride is around $31, 453. This leads to the question as to so many people spend so much to get a new and how exactly it would benefit them in the future. Financial experts believe that this is the cause of the FOMO phenomenon or the fear of missing out. It is pushing consumers to their limits that most of them don’t even care about long-term goals such as preparing for retirement.
In social media alone, people spend so much of their time checking out what other people are up to and what they are doing. Most of the time celebrities show off what a lavish lifestyle is like, and ordinary people view this as a goal. There is absolutely nothing wrong with getting your dream car, as long as it does not interfere with long-term goals that are way more important than a vehicle that may even lead you to bankruptcy.
People who choose to get their dream cars often lead to having to postpone their retirement, not just because they don’t have enough savings yet, but because they are still paying for the car they got. If you think about it, an average household has at least two cars so each household already needs more than a thousand dollars every single month to pay for it. So that means more than $12,000 must be saved for the payment of two vehicles. This is just an approximate cost for an ordinary car, that could double if it is a luxury car such as a BMW or a Tesla.
To Delay Or Not Delay
A lot of people still can’t decide when they are planning to retire. Usually, it will depend on their health, age, lifestyle, and of course their savings. There are a lot of people who are ready retire, but they often find out that their savings are not quite ready for them yet. One of the most common reasons for it is because they did not both saving for their retirement at an early age, another would be because they are still in debt.
People who choose to retire early even if their savings are not enough, usually end up getting out of retirement to find a way to earn more money. The earliest you can claim your Social Security benefits is at the age of 62, but you will be given the opportunity to increase the Social Security monthly income if you retire later in life.
Although delaying retirement because of debt is something you must avoid, bear in mind that Social Security benefits are not enough to let you live comfortably. There is no such thing as being too early to save for retirement, but there is such thing as too late and it is something you wouldn’t want to do.
More in Retirement
Target and Disney Forge an Exciting Partnership and We Didn’t See This Coming!
For decades now, the world has enjoyed the magic that is Walt Disney. Who can say that they haven’t interacted with...April 17, 2020
Millionaires of the Wizarding World–These Are The Richest Actors Who Played Professors In The Harry Potter Film Franchise
There’s no doubt that the Harry Potter films and books have become a global phenomenon. Years after the story has been...April 17, 2020
These Common Mistakes Are Ruining Your Chances of a Comfortable Retirement
After being committed to your workplace for a number of years, you unconsciously begin to look forward to retiring. You must...April 17, 2020
Why Social Security Will Go Up in 2019 And How You Can Prepare for It
Despite the expected rise in Medicare Part B premiums, a lot of retired workers will access checks by January next year....April 16, 2020
Are You a Financially Struggling Millennial? You Can Now Work For a Brighter Financial Future Today
Millennials, or those born in the years 1981 to 1996, now comprise one of the country’s most powerful financial demographics. They are...April 15, 2020
Here’s How You Can Stay On Top Of Your Personal Finances While Also Running Your Own Business
Everyone will benefit from managing their personal finances more closely. However, it’s still worth acknowledging that business owners tend to have...April 15, 2020
BEST Investment Tips to Help You Achieve Your Retirement Goal
Investment has a top spot on the list of expert-suggested ways of increasing wealth, establishing solid future fallback plans and saving...April 15, 2020
This is The Amazing Story Behind The Rise, Downfall, & Eventual Comeback of Iceland’s Only Billionaire
It’s no secret that the extremely wealthy lead very interesting lives. From the way they built their large fortune to the...April 15, 2020
Already Planning Your Retirement? These States Are The Best Bets If You Want to Save Money
Similar to real estate, retirement, in a way, is all about location, location, location. People spend decades planning for retirement and...April 14, 2020