{"id":3478,"date":"2020-02-13T18:06:33","date_gmt":"2020-02-13T18:06:33","guid":{"rendered":"https:\/\/sites.austincc.edu\/money\/?p=3478"},"modified":"2020-02-13T18:06:33","modified_gmt":"2020-02-13T18:06:33","slug":"were-not-lazy-were-in-power-save-mode","status":"publish","type":"post","link":"https:\/\/students.austincc.edu\/money\/smmo-blog\/were-not-lazy-were-in-power-save-mode\/","title":{"rendered":"We’re Not Lazy, We’re in Power Save Mode"},"content":{"rendered":"

Do you think you can live off of less than $1,500 a month? Yikes!\u00a0<\/span><\/p>\n

According to the Social Security Administration Fact Sheet, $1,471 is the average monthly benefit for retired workers. To put that in perspective, the average cost of an apartment in Austin is $1,436. So basically, you have no money when you retire if you just live off social security. Can you live your best life like that? You\u2019re already old\u2026<\/span><\/p>\n

If that\u2019s not the life for you, here\u2019s a suggestion: The Three Legged Stool for funding retirement<\/span><\/p>\n

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  1. Social Security:<\/b> you\u2019re already going to have social security as income (unless you believe you won\u2019t, which is for another blog).\u00a0<\/span><\/li>\n
  2. Employee Pensions: <\/b>If you have a job<\/span> that offers a 401k or a 403b and you qualify for it, take advantage of it. That is pretax money, meaning, when you pull that money out when you retire, they\u2019re going to tax it and you\u2019re not going to love that. So what you can do to supplement that is to also get your own savings for retirement going.\u00a0<\/span><\/li>\n
  3. Personal Savings:<\/b> Roth IRA and a Traditional IRA. Do you research and choose what is best for you. The money you put into these accounts are post tax, so your money will grow tax free.<\/span><\/li>\n<\/ol>\n

    You\u2019re not done with savings there. Always pay yourself first. That includes <\/span>retirement<\/b>, an <\/span>emergency fund<\/b>, and a <\/span>sinking fund<\/b>. How much should be in these savings accounts? It\u2019s up to you and your lifestyle.\u00a0<\/span><\/p>\n

    Emergency Fund: Start at $500-$1,000<\/span><\/p>\n

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    1. If you make less than $20,000, save at least $500<\/span><\/li>\n
    2. If you make more the $20,000, save at least $1,000<\/span><\/li>\n<\/ol>\n

      Once you have your emergency fund stocked, you can begin saving up 3-6 months of expenses in case you lose your job.\u00a0<\/span><\/p>\n

      A sinking fund is simply a strategic way to save money for big purchases, like Christmas 2020. You know you\u2019re going to ball out, so just set some money aside each month for that.\u00a0<\/span><\/p>\n

      Don\u2019t take the freedom you have as a college student for granted. Next thing you know, you\u2019ll have children and a house to take care of. It would be nice to already have some money set aside for when life happens. Did you know that 66 million Americans do not have an emergency fund? That\u2019s probably why the average household credit card debt is $8,398.<\/span> I\u2019m just going to leave that there. <\/span>\u00a0<\/span><\/p>\n

      Oof. Maybe that all seems like a lot, but there are a few ways you can start saving today.<\/span><\/p>\n

      Here are a few apps that you can try: <\/strong><\/p>\n