Is It Too Late to Start Saving for Retirement? 3 Steps to Get Back on Track—Even If You're Drowning in Debt | 72

Welcome to the show. So today, if you have ever thought I am way too far behind to even try, like saving for retirement, is it too late? Is it too late to start saving for retirement? Spoiler alert. Oh, but today's episode is for you. I'm going to bust that myth wide open and tell you why now is the perfect time to start saving for retirement if that's your next step. If you are brand new to the show, welcome. Hi Angie, It's so nice to have you join us for the show. So this episode is for you and for anyone else that's just like, OK, is it too late to start saving for retirement?

First off, my I want to let you know who I am if we haven't had a chance to meet yet. I am Julianne Colbrand, but most of my clients and my friends call me Jules the budget nerd because I am obsessed with budgets. But I help overwhelm parents. Ditch that, build margin and stop surviving. Stop operating and survive survival mode when it comes to your budgets and your and spending your money. One of the ways that I do that is through my free five day challenge that you can jump on my website and I'll talk about that a little bit more.

But this question is so popular. I was like, I need to record an episode about this, but I also know I was in I was in this, this space where I'm like, is it too late? Because I know it's important. And when I was just drowning a debt and I was looking at our numbers, I'm like, this isn't even going to be possible, so why am I even going to try? So let's jump in.

Welcome to the Debt Ripple podcast where we discuss the insurance and outs of personal finance for families so you can eliminate the burden of debt, create financial margins, and learn a new way to interact with your money. I'm your host, Jules the Budget Nerd, and I have been in your shoes. My husband and I have paid off over $107,000 in consumer debt until we finally threw in the towel and decided it wasn't for us. Throughout our journey, we learned another way to do life without debt, and that's my hope for you.

You can learn more about our story and see full show notes on my website, julesthebudgetnerd.com. That's JEWLZ, the budget nerd.com. Now let's dive into today's episode. OK, so today's today's topic is a hot 1 because that feeling of going, you know what, I'm not even going to get started because I feel so far behind that it's just going to be a lot easier if I don't. And so today is one of these myth myth busting episodes because now is the perfect time to start saving. And there is a process and a step that our family went through also, because I feel like debt elimination, this is what worked for us.

Eliminating our debt first so that we could focus on saving more was just a game changer for our mental health, our financial health and our relationships, all of the things. And so, but also, you know what, I might be in a different place as far as my retirement savings goes, then some of some of the other people in my age bracket. And you know what, that's totally fine. We are where we are. But today's episode is about answering that question. Have you missed, have you missed your opportunity and is it worth even trying?

And so I want you to hear me say today, it's not too late. So you might not be able to start and have the same amount as someone that's starting at age 22, which I remember someone saying you got to start saving for retirement. You got to start saving for retirement. So your approach is going to be different than someone that has more time on their hands. And so that's all it is. It's going to look a little bit different, but it is not too late. So three things that are really important to focus on right now at the stage that you're at right now is that starting.

So the best time obviously is yesterday and the second best time is right now today. The best way to get started is just small amounts, right? So even a little bit is going to compound and create this momentum. And that's why when we talk about eliminating our debt, this is one of the ways that we can do that is eliminate that so that we're trying not to bail water from a a boat that's got a hole in it. The very first thing is to be very intentional with the money that we have right now. So our biggest wealth building opportunities are with our current income.

So whatever money you have coming into your household right now is having a plan for every single one of those dollars and you want to focus on that very first. That very first step is creating that $1000 emergency fund. And I talked about this in our debt Rebel starter kit is something we talked about a lot within our community is making sure that you have that set aside because that is your, your personal credit card now. So we're not going to borrow money from someone else. We're going to use that personal credit card, your personal savings, that $1000 anytime something you would normally have put on a credit card to bail yourself out, you're going to use that money and then you're going to replace it.

So being intentional with your money and then you're going to attack that debt so that you can make some huge strides with saving for retirement. What do we do with the money that you have now? So we don't want to waste time or we don't. So getting clear on what is important to you. And if right now the thought of saving for retirement is something that causes you stress, then let's let's work on that. All right, so being intentional with every dollar that comes in, we don't want to waste our time and money on things that aren't aligning with what matters to us in our present but also in our future.

So when we create margin in our life, whether it's with money or with time or energy, emotion, that's where we gain our power and we have the most opportunity to make wise choices. Instead of reacting, we get to respond. And so that's why creating a budget and have in seeing what you have available to spend and what able, what you have available to save is very important. And then the third thing is avoiding the debt trap. Now this one, this is where I can really just go off on a huge tangent. But the more that we owe, the less that we have to save.

So every dollar that we put towards debt is something that we can't save for the future. And so yes, we need to be present in the moment with our friends and our family and the people that we want to do life with and do the things that we want to do. But when we are using debt to manage our day-to-day life, then we are robbing ourselves of our future. And this is where we can create that stress for ourselves within this question of is it too late to start saving? So I say absolutely not. Now is the best time.

Let's create a system and let's create a plan that works for you and your family. And that's what I love teaching. This is what I and my family did is we got serious about limiting that debt so that our income could be used for saving for the future and for our present. So I do not want to be robbing from my future with debt and that's why our family has decided we are the ultimate debt rebels and we will not be using debt to fund our lives anymore. So what can you do right now to get some quick liens to give yourself some peace and some clarity over your money and what that looks like to start saving for retirement?

The first thing is to know your numbers. How much debt are you paying? How much are you paying every month in debt? What are your monthly expenses look like so that you might be better off than you realize? And so if you haven't looked at what your numbers are lately in those in those, that's a great spot to look and be able to see the picture of what your finances look like. And then the other thing is let's trim some fat from that budget. So things that aren't providing value to you right now, let's eliminate those because that is money that you can use for paying down your debts and creating that emergency fund.

But then you can really start focusing on saving for retirement if there are, you know, some low hanging fruit. They say when it comes to to trimming the fat from your budget are if there's subscriptions that you're not using, say goodbye to those. I know for our family, we rotate through like we do subscriptions for things, but we rotate through. All right, you know what, this month we're going to choose this streaming service because there's a show we really want to watch on that one. And so we rotate through those things.

Maybe you give yourself a set amount that you're going to use for impulse buys and this isn't money that you're like, OK, I'm just going to go blow this. It is being intentional and putting that in your budget to say, this is my money that I I can use on those impulse buys. So you're not necessarily saying like, OK, I know that in two weeks I'm going to buy this thing on Amazon that I happen to see you while I'm on there. Maybe that is that's just money that is in your budget. So when you see that thing and you're like, you know what, I have this much money in my impulse buys category and I'm that that is going to keep me on track and so that I can still save for retirement, but I can still indulge in some of those impulse buys.

So you're not setting yourself up for failure, you're setting yourself up for success. So review what you have in your, in your spending plan, in your budget and see if there's anything that can go. And then it's just start contributing, even if it's just a little, if it's $20.00 a month because you have cut out a, a subscription that you're like, I don't use that anymore. 20 bucks is 20 bucks. And then you want to do some, do some research about Roth Iras or 4 O1 KS if that's offered by your health or if four O 1 KS are offered by your provider or if you have a thrift savings plan, if you're a federal employee, maybe you've got health savings accounts that you can use to start saving and building some wealth there.

So there's some, there's some ideas and we'll do future episodes about those. But those are some ways that you can get some quick wins because remember, progress beats perfection. And this isn't about making sure all the lights are green before you start driving home from work. Work. We want to make progress, we want to make the small steps towards our goals and that's going to get us to where we want to go faster than if we were just sitting there waiting for all the perfect conditions. One of the ways, if you don't have an idea of what your finances look like and you're like, I need some clarity around this.

I'm a little disorganized. I don't even know what my monthly budget looks like. On my website. I have a free five day challenge and that will help you lay all that stuff out. It has five tasks to do and it's delivered over 5 days. It's going to take you about 15 minutes, but it's going to give you a plan and a overall view of what your financial situation looks like, even if you feel like you're behind. So this challenge is for parents. Maybe you have a busy brain like myself, or maybe you just feel like you're just late to the party and you want to stop feeling like that or you want to stop feeling like you're just surviving.

So you can find that challenge on my website, jewelsthebudgetnerd.com back slash challenge. And you'll be 5 days closer to having that Peace of Mind and getting you closer to that goal of saving for retirement. Because remember, you are not too late. You're just getting started. And getting started is, it can be the hardest part, but it's what counts the most. Just getting started. So check out my website jewelsthebudgetnerd.com/challenge. That's JEWLZ, the budget budgetnerd.com back slash challenge, and you can take that first step towards financial freedom.

All right, Debt rebels, I hope this episode was helpful for you and we will talk soon. Thank you for listening to the Debt Rebel podcast. Now, if you want to take your next step, check out my website, jewelsthebudgetnerd.com. That's JEWLZ, the budget nerd.com. I've created a bunch of resources just for you. So hop on over, check it out and we can connect more there. If you love today's episode, I would be honored if you would hit that subscribe button and leave me a review. And remember, every step towards financial independence is a rebellion against debt.

So stay strong, keep pushing forward, and fight the good fight until next time. Debt rebels stay resilient.

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