Retirement — it's one of those old-fashioned words that conjures up images of lawn bowling. When it comes to saving for retirement, well that is tough to say with much excitement — at any age. But what if you thought about savings in another way? What if putting a little bit of money away, month after month, could guarantee you more choices and opportunities than you would otherwise have? We've imagined a few scenarios that life may bring, where a nest egg of savings (registered for retirement or not) will change your life. Seriously.
Time for a rebrand
We propose forgetting about retirement for the moment. Awesome, right? When you are young, withyourwholelifeaheadofyou, why would you want to put your hard-won cash away for the future, when there are so many pressing things to be done with the money right now? By the time you retire, well, you'll have saved enough, right? (Or at least have married well, earned an inheritance and won the entrepreneurial lottery?) But what happens if you're wrong? How will you achieve that sweet life that you just know you are destined for? With a little savings, my friend (of the not necessarily R-labeled kind) …
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1) What if your dream job is a nightmare?
What if you follow your heart into the career of your dreams (as everyone says you should), and the money doesn't follow? Or your industry goes through a radical transformation or mass layoffs? What if it turns out you hate your job and want to start over in a different career? No savings + bills to pay = stuck, desperate and possibly unemployed. Your sweet life savings plan will give you a chance to stop the world, so you can step away, reassess and get back in the game — on your own terms.
2) What if Prince Charming is not so charming?
Ever since Cinderella, girls have been conditioned to believe (even in a tiny corner of their heart) that someday a rich and handsome prince will come along and rescue them from their tiny apartments and marry them so they can live happily ever after in posh penthouses with personal shoppers. But what if you do meet the kajillionaire and he is deadly dull? Or a philandering jerk? Your sweet life savings plan means having your own means — giving you the confidence to hold out for your true love and avoid a costly and painful divorce later.
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3) What if you meet Mr. Right and he is a starving artist?
Good for you, you held out, didn't settle and sure enough, you find the best guy in the world. He's brilliant, funny and loves you to your bones. You can't wait to mix your gene pool with his! However, he never imagined settling down — until he met perfect you, of course. He earns a fraction of what you do and can't afford a wedding, a house or even a jogging stroller. Thank heavens, you have your sweet life savings plan. You have the luxury of marrying for love without sacrificing your dream of the white picket fence.
4) What if you get everything you want and it's exhausting?
Success can be a double-edged sword. Your work is fantastically in demand, your gorgeous children are growing up fast, your dream home is under renovation, you are turning forty and you are exhausted. What?! Wait a second, how did that happen? Whether it's post-partum depression, a mid-life crisis or a change of life hormonal crash — at some point that sweet life savings plan could actually save your life. Maybe all you need are eyelash extensions, or maybe a mind-blowing week at a spa in Arizona is required — mama needs her own money to privately restore her sanity and dignity again.
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5) What if inheritance isn't even in your vocabulary
What if you'd rather your parents enjoy and maximize the possibilities in their retirement years — rather than hold back in fear of not leaving you something to enjoy yours? Solutions to age-related illnesses are advancing every year. Indeed, retirees today worry about making sure their savings can last as long as their lives, which are more active than ever before. With your own sweet life savings plan in place, you can relax, let your parents have their fun and cherish your dad's corny jokes for many more decades to come.
6) What if there is no windfall?
From the viewpoint of 30 years out, it's easy to imagine that surely at some point you will win the lottery, invent a brilliant app that gets bought by Facebook, or get picked for a wildly successful reality TV show that will score you millions in product endorsements. We're not saying daydreams don't come true, but in our vast experience, more opportunities flow to those who are not in desperate need of them. In other words, get your sweet life savings plan together so if a windfall comes along, it truly will be a bonus.
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7) What if the big thing comes along and you're not ready?
Be prepared. It's not just for boy scouts anymore. It's why you shave your legs before a big date. It's why you never leave the house without mascara. It's why you need a sweet life savings plan. Maybe you dream of getting into Harvard. Maybe you have your heart set on buying a cottage where your kids will spend their summers. Fortune may favour the brave, but it also favours those who are ready to accept it. If you suddenly got your dream offer right now — would you have the financial ability to step up and seize it?
Your ticket to the sweet life
According to a study by the Bank of Montreal, nearly half of people between the ages of 18 and 34 plan on quitting work before they are 60 years old. And yet, more than a quarter of them have no savings plan. It is hard, especially when you're trying to pay off student debt, pay rent or buy a home and raise a family. But the best part of youth is dreaming big and the possibilities that lay ahead. With a small but steady sweet life savings plan in place, you have a way better chance of making those big dreams come true.
GoldenGirlFinance.ca is a free personal finance and education site for women.
Nothing contained herein is intended to provide personalized financial, legal or tax advice. Before implementing any financial strategy, you should obtain information and advice from your financial, legal and/or tax advisers who are fully aware of your individual circumstances.
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