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Retirement Goal for 2021

December 24th, 2020 at 09:53 pm

This is our last paycheck for the year, and this will be our last paycheck with 5% being taken out for retirement.  From here on out we will be attempting a budget with 15% taken out for retirement.  If it makes things feel too tight we will back off to 10%, but I've done the budget and the numbers will work and we will still be able to save $1075 a month to the EF, assuming we stay disciplined with the no eating out of our own pocket thing.  MIL gives us $120 a month for eating out to make things fair as that is how much she spends on takeout for her daughter and her daughte'rs live in boyfriend each month, so we can get some take out if we really feel the urge.  But we could also save that if we don't.

I figured this would be a really good time to do it, because:

1.  The paycheck is going to drop anyway due to an increase in medical premiums, so I'd rather drop it all at once and see how we deal.

2.  It's a new year and it always seems to be more attainable to meet new goals for the new year.

3.  I will be 51 in February, DH is 51, and our retirement is very low for people our age, because we had to throw so much money at debt for so long.  We've really got to play catch up.  While DH wants to work for as long as he can, he loves his job, he can't work forever.  And he probably won't live as long as me, as women tend to live longer.  I want there to be enough money there between 401k, the IRA, and life insurance for me and my disabled daughter to have a decent life when the time comes.  I don't want to be a burden on my son.  I want him to be able to live his own life.

4.  Having it taken out automatically before we ever see it is always the best way.  It takes self-discipline out of the equation, because it is being put in an untouchable account.

5.  It won't affect any of our day to day living.  We will still have the same amount in every budget category that we do now, but a lot less wasted money on take out that could have just been going into the EF these last six months and should have been.  I've taught the kids how to make a few more easy meals, so if I am just wiped by the fibromyalgia or the rheumatoid arthritis, they can step in.  My son more than my daughter, but she can help to get food on the table.

So that is the plan.   15% seems so huge, but when it comes down to it, for us it really is not.  It is a necessity and with no debt we can do it.  I know we won't be doing Dave Ramsey's method completely right by contributing to retirement before the full EF is in place, but I think we are just too old to do it that way.  And if we can pull off this new budget, we will have a fully funded EF by the end of the year anyway.

2 Responses to “Retirement Goal for 2021”

  1. terri77 Says:

    Good job on your increased retirement contributions! It will ready add up.

  2. terri77 Says:

    Really, not ready!

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