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Retirement Planning and Weird Middle Class Expectations

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There exists a grave problem regarding retirement planning in America. More than 50% of the baby boomers possess less than $250,000 in terms of retirement accounts savings, something that equals only $833 each month in cash. Simultaneously, certain disturbing trends are victimizing the middle class in USA. As revealed by Pavlina Tcherneva, economics professor, Bard College, US workers who constitute the bottom 90% missed out largely on the 1982 economic expansions.

Given this, these bigger trends do not justify a total deficiency of fiscal common sense by certain middle class people. The formula for retirement planning is always the same- expenses should be less than the earnings and the difference should be invested. If you follow this throughout your working tenure, everything should be hale and hearty.

Many families tend to follow a particular lifestyle which comes from certain beliefs. Here are a few trends or beliefs which middle class families should avoid in order to save more for a happy retirement.

Brainless spending and Great expectations

Sometimes, people belonging to the middle class possess outrageous expectations. They often do not have a budget which makes them spend extravagantly, since their expectations are far from the reality. As a result the savings is often minimal or zero. Before you have any complaint about financial problems, ensure that your family does not belong to this category.

The entire family possesses a car

When the financial situation is tight, it is indeed ridiculous to have a car. A number of families across the globe can accommodate simply fine on far less. In case the mother and the father require a car for work purpose, it is okay. However, if the son or daughter needs to go to college or possess a driver’s license that does not indicate that a personal car should be necessary.

The phone bill of the family per month is $400

It is true that nowadays, phones are vital. But when you are in a trying financial situation, it is vital to go for the most suitable plan possible. There are many cheap plans which assist in bringing down the costs. This would enable middle class families to save a considerable amount each year.

Groceries constitute a huge amount of expenses

If you have a low-cost plan in terms of the grocery, your family can run with around $871 per month. This again goes a long way in cutting down the annual expenses.

Money is paid for cable even when the need is not there

There is an instance where a family spends $100 each month on a particular cable connection just because they need to listen to the business and weather channel. This is indeed weird, taking into consideration the fact that you can always search the internet for these things. There is a lot of business and weather related websites.

The motorcycle is a toy

This might again seem a strange description but to a certain extent it is true. The husbands in many families consider a motorcycle as a mandatory toy, but before you complain about retirement woes, think that this toy can cost you significantly.

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