Savings? Huzzah for the Penny-Pinchers!

I’m under 25. Statistically, I should be swamped with debt. I also shouldn’t have any savings. I have far too many friends my age who live paycheck to paycheck, but not because they make low wages. The term paycheck to paycheck is actually a misnomer. They’re really living bill to bill, because they save enough money to cover the next rent payment, cell phone bill, or tank of gas. After that, they consider their paycheck to be free game! Dinners and dates, movies and music – they have the money until next month’s bills.

They don’t understand that they will be royally screwed if they lose their job tomorrow, or if they’re injured and can no longer work. Why don’t we save any of our money? The Workplace Prof Blog cites a new report from the EBRI that gives us a scary number – retirees will need between $196,000 to $390,000 is savings just to cover health care. Then consider a house, food, transportation, utilities, and all those pleasures of our golden years.

I’m going to be honest: I’m terrified about retirement. I’ll probably work until I die, but I’m still saving for it now. Then again, I’ve had a retirement account since I was 16, so I was never fiscally normal for my age.

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