"For many Americans, retirement often means living on a fixed income. In fact, according to The National Council on Aging, at the moment, about 40% of retired Americans rely solely on Social Security income to get by. That, they say, averages about $1,913 a month. But in times of economic instability, including sky-high inflation - living on that fixed income can be challenging."
"For you to have money, you have to learn to live below your means but within your needs. How do you do that? You do that by simply purchasing needs versus wants. What is a need? Need is food that you buy at a grocery store. What is a want? A want is going out to eat at a restaurant and doing it over and over again."
"Going out to eat contributes to massive credit card debt, too, which can weigh on you in retirement. Most people don't realize how much money they spend by heading to the drive-through or going out to a fancy restaurant once in a while. Some of us, including me, stop by Dunkin every morning and spend about $20 on coffee and a hot bagel, which comes out to about $600 a month. People are literally eating themselves into debt."
About 40% of retired Americans rely solely on Social Security, averaging about $1,913 per month. Twenty percent of Americans have no retirement savings. Starting to save at age 50, even modestly, can improve retirement outcomes and is better than having no savings. Living below one’s means and prioritizing needs over wants frees funds for saving. Cutting frequent restaurant meals and daily small purchases can reduce credit card debt and monthly expenses. A significant share of adults are willing to incur debt for experiences like travel, dining, or entertainment, increasing financial strain during retirement.
Read at 24/7 Wall St.
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