Is it all that difficult for the average person to achieve financial security?
I don’t think so …
but it takes financial discipline, patience and focusing on long term goals – like decades.
- Save at least 10% of your income from the first day you are employed and never stop – raise your savings by a percentage of future raises.
- Always capture any employer retirement plan contributions, always.
- Never use a credit card if you cannot pay the balance in full at the end of the month.
- If you follow the above rules there is no need to stress over a budget.
- Make sure you have adequate insurance – all forms.
- Up until age 45-50 invest aggressively- in stock index mutual funds.
- As you approach retirement gradually move some investments into more income funds such as bond funds and start to build up some cash as well. You are trying to reduce risk with the funds you will need as income.
- Watch your accumulated debt such as mortgages, car and student loans. Have a plan to be debt free or very close by retirement.
- Live within your means.
- Put your retirement saving ahead of children’s college. There are options for college, not so much for retirement.
- Nearing retirement think about how you will generate a steady income stream. Social Security is likely primary. For a few a pension and for others wanting to minimize risk and stress an immediate annuity purchased with a portion of investments depending on your needs.
To accomplish all this there is no shame in working overtime or even a temporary second job or side hustle.
If you are a dual working couple designate a larger portion of one income toward long term financial goals.
QUINNSCOMMENTARY 
Sound strategies for retirement, as well as for everyday living during one’s working years. The biggest obstacle to long-term financial stability is short-term gratification. Learning to live within your means is simplest and most effective way to afford the co-called good life.
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Good list you have but not sure if folks would adhere to it. A desire for immediate gratification trumps the “long term” for most people. Read today that the average person in retirement has less than $200,000 while the gurus say at least $500,000 in some form of retirement plan gives you a fighting chance.
Anyone facing a 30-year retirement needs a large % in equities despite the fact that volatility will create brown underwear every so often. If you want to commit financial suicide then a purely fixed income portfolio will do just that.
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“Only 27 percent of California high school students attend schools that offer personal finance classes.”
“Offer”? It should be mandatory.* I vaguely recall being taught how to write a check and balance the checkbook. Nothing about retirement, for sure. How is the average person supposed to know about retirement?
Now that I think about it, I don’t believe Dad even had a checking account most of his life.
When he retired, he got a checking account so he could receive SS by direct deposit.
*catch 22; mandatory is a dirty word now. ” I have the right to remain ignorant. “
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