I realize most people groan at the thought of balancing their checkbooks, but I’ve always liked it. That has nothing to do with whether I have a decent paycheck coming in or not–I was meticulous even when living on $14k a year as a student. I like math, and I guess I like knowing where I stand. Even when where I stand isn’t very lucrative. I can make do with very little, and I’d rather not buy things I can’t afford. I hate the feeling of being owned by my belongings, and I don’t understand how the average American sleeps at night.
What frightens me is retirement, though. Oh, I love the thought of not having to work in the tech industry. But the thought of not having any income, and perhaps not having the physical ability to work at all, scares me. Mainly because, like most people, I have precious little saved for retirement. I’m too dang busy trying to pay off and fix up the house.
The way I see it, people who aren’t Baby Boomers have pretty much been cut loose to fully fund their own retirements. We keep hearing that Social Security is in trouble, yet nothing is done to fix the problem. Instead, we keep pumping billions into wars. The government is no better at financial planning than private individuals. I don’t count on ever seeing much, if any, money out of Social Security. If I do, it will be a nice windfall.
Having a good job isn’t going to save you, either. Gone are the days of a pension plan. In fact, I’m not so sure I’d feel safe if I did have a pension plan, given that they seem to incoveniently disappear after retirement.
If you’re lucky, you have an employer that contributes up to 3% of your salary into a 401k. 3% seems to be the average, at least around here. There are a couple of employers who pay much higher. Mine pays lower. The most I can get from my employer is a whopping 1.25%. It used to be 3%, but then the company was bought by a venture capitalist that decided investing in the future of the company mattered more than the future of the employees.
For complicated reasons, I choose to stay, even though I’ve thought of leaving over this issue. Really, even 3% of your salary isn’t much money, when you get down to it. And it’s downright scary if you aren’t sure that any Social Security is coming your way and you wonder if Medicare will even be around.
To be fair, though, my company does offer a good health plan. At least for now. Given the way premiums keep going up, I wonder how much longer that can last. I think we are in for some very difficult times and choices in society when it comes to healthcare. I strongly suspect that our economy is already overburdened by the cost. How does anyone manage to start a small business anymore? How does anyone manage to be self-employed? I think health insurance puts a drag onto the entreprenurial spirit, and we need people starting new businesses in order to maintain economic health.
When my employer dropped its matching rate on the 401K plan, I stopped contributing. I decided to work on paying off the house instead. Still, that can’t continue forever. At some point, I need to save for retirement. Given that I am not sure how much longer I can stand the tech industry, I think I have to consider that there is a pretty severe paycut coming my way in the next few years.
Actually, I want the hell out now. I have to ask if a decent paycheck is worth being this stressed out and unhappy. In the short term, it is worth it, I suppose, if it helps me with financial goals. In the long term, this is an insane way to live. I’m just not sure how to step off the damn merry-go-round, however.
I stayed home sick today. Just thoroughly burned out and exhausted and needed to try to catch up on some sleep. Once I woke up, I figured out how to get into my 401K account, and I did some adjusting. One of those adjustments was to start making contributions again, starting with my next paycheck. Given that the stock market has been down, this is a good time to leap in again.
Looking over my finances made me feel a little happier and more in control. These days, I scruitinize them to decide if I can quit my job or not. I keep drawing the conclusion that I could get by in the short run if I do, but my worry about being able to get by further down the road keeps cropping up. So there is satisfaction in putting a little toward retirement. Not much, but some.
In any case, I failed to win the lottery last weekend. I did get the Powerball right on one of my five draws, which means I won $3. Woohoo! I’m only $2 in the hole on my stupid tax.