My money class met for the second time and it was daunting but good. Week 1 everyone should be doing their budget without shame or guilt based on what you are spending today. And then we should set up our future budget, for example where we want to be.
The second week we discussed the “pot of gold” as it relates to saving for retirement. Essentially, they provided another worksheet that walked you through creating a target number to save for retirement. It was a frightening number – in the millions for most people. And then they discussed what you need to do in order to achieve this “treasure of gold”.
It was a very informed discussion (remember, this is aimed at people like me who are entrepreneurs building a business). The conversation was about what you need to live, what you need to save for taxes, and what you need to add to your pot of gold to get there.
And for this class they state that your gold pot should be enough to lose 3% for 30 years. I’m not sure where they got these numbers from, but I suspect they are based on lifespan after retirement?
Anyway, it made total sense to me and really hit me in a headspace that I’m comfortable in. I always ask for “How much do I have to earn?” lived. Ok let’s rush and build to get there. I was simply satisfied with too little, was too comfortable with debt and, to be honest, I needed this training LONG ago.
It was great.
I couldn’t attend the third session late last week (work got in the way) but I plan to watch the replay soon. I have a lot to do to build up my “pot of gold”. However, this class is amazing. Real numbers, a strategy that I think works. I am so glad i am doing this.
The post Pot Of Gold – Saving For Retirement Is Disheartening, first appeared on Blogging Away Debt.