We suck at saving for retirement. The average 50 year old has $43,797 saved for retirement. I hate to break it, but that is just not going to cut it. With the fact that most of us have such a hard time saving for retirement, we need to come up with a way to make it more fun or enjoyable so that people start actually saving.
Let’s look into the mind of a typical person. They say to themselves, “I should probably start saving for retirement.” The a commercial comes on TV for the new iPhone and drooling ensues. By the time the commercial is over, they say to themselves, “what was I going to do again? Oh well, that new iPhone looks sweet!”
I’m not trying to pick on people, but we have a short attention span. That and companies spend millions every year to better understand how we think and react. They then use this against us so we fulfill a short-term need instead of a long-term need.
If the above example doesn’t describe you, then maybe this one does:
When you think of saving for retirement, you say, why should I save a bunch of money when I might not even be around to enjoy. YOLO people. YOLO.
In either of the examples I presented there is one thing true about both of them: we are not good at conceptualizing the long-term. So, in order to save for retirement, we need to re-wire our brains. Don’t worry, it won’t hurt.