How Does A Homemaker Save For Retirement?
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3 responses to “How Does A Homemaker Save For Retirement?”
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That is my favorite question of the week, hands down! What an excellent question! The first place to start is to figure out where your money is going, and eliminate or cut back on those places where it doesn’t need to go. Maybe you find that you’re dining out 6 nights a week, and that it is a significant amount of your paycheck. Cut back on the number of nights, or go to less expensive places. Put together a budget, and stick to it. Take the money that you now find extra, and use it to create a stable financial foundation for yourself – create an emergency fund, pay down your debt, and start investing the rest. Once you’ve created a stable platform to work from, you can be more aggressive with your long range financial plan. It will all start with knowing where your money is going, and how to make it go where you need it to, instead of where it is going now. Be the steward of your money, not its slave. Great question! Thanks for asking!
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During your earlier years you can set aside money and develop “financial capital” for your retirement. You are allowed to make annual contributions to an IRA or Roth IRA. However, a homemaker has a great deal of “personal capital.” You can do so many things and will be able to do many of them into the later phases of your life. If there is something you do particularly well, like bake pies that can be developed into a boutique business.
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The way I did it was to live frugally. While living on one paycheck, my husband and I still tried to put some money in savings, which then grew to be able to be put in some more aggressive investments. Aside from that, you could take on a small job that you can do from home, and set that income aside for retirement. It seems daunting at first, but every little bit helps and adds up.
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