Monday, December 6, 2010

Calling All Singles...With Money

One single woman told me she had never done anything to prepare for retirement, figuring someday she would be married. Well, at 34 she realized it was time she start doing something. She asked how she should begin.

Single people often delay financial planning. I think a lot of singles postpone these financial decisions assuming they will be married at some point. Some singles reason that since they are alone, they should be entitled to live large in compensation. That can lead to an empty bank account later in life. It’s very wise to start a retirement program while you’re young. Being single may be a permanent situation, so waiting to start good financial planning may never end. The time is now.

Proverbs 13:11 teaches us that “he who gathers money little by little makes it grow,” and that’s where you should begin. You might try to designate as large an amount as possible to invest in a savings plan. If your company offers any kind of matching retirement plan, that may be the way to go. Investigate different methods, but most importantly start putting away a definite amount each paycheck. Have it deducted if possible. Whether you marry or not, this is a wise thing to do.

Do you have other suggestions to offer? What advice would you like to pass along?

2 comments:

  1. First off, I think this is titled incorrectly. This should not be just written towards singles. There are probably plenty of married women who do not put something away because their husband does. And by saying "with money" makes me assume it is for people with spare cash just hanging around. We all know that many, if not most, people spend what they make. So this is for everyone who earns money regardless of how much or marital status!

    Put something away somewhere, whether in a company 401k or your own Roth IRA. And if in a company 401k, if you leave the company, have it rolled over into another approved plan. (See your tax adviser!) Don't think that you can cash that in and it won't matter. Every little bit matters. Take it from someone who cashed in a 401k when she quit to have a family. Only a few thousand. It wouldn't matter in the grand scheme of things, so I thought! But 7 years later, when I divorced and had to plan to provide for my own retirement, I would have loved to have that few thousand nest egg.

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  2. I'm glad you noticed the title. It was designed to pique a reader's attention.

    I realize the principles apply to anyone, but often singles delay applying a savings plan because they do not have others to consider immediately. We have a lot of single followers, so I like to provide resources that will be helpful to them from time to time. So much of the material from Christian sources addresses married or family people primarily, so I try to keep a balance.

    Thanks for your input and suggestions. I know they will be appreciated by others as well.

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