Retirement savings… let’s be real, it’s one of those things that a lot of people push to the back burner. When you’re juggling bills, groceries, and everything else on one income, saving for retirement feels like a luxury you can’t afford.
But here’s the truth: the earlier you start, the easier it gets. Just because nobody around you is talking about it doesn’t mean you shouldn’t start now. So let’s break it down and make this whole “planning for retirement” thing actually make sense—without the stress.
Why Saving for Retirement is Crucial
Picture this: your future self, living your best life without financial stress. Yeah, that doesn’t happen by accident. It happens because you planned for it. Here’s why it matters:
- Compound interest is your BFF: The money you save today grows on itself. It’s like planting seeds and letting them grow into a forest.
- Retirement is expensive: Healthcare, housing, and everyday costs aren’t slowing down anytime soon. You want options, not limitations.
- Financial freedom: The more you save now, the less you’ll have to depend on anyone else later. You get to retire on your terms.
The Best Time to Start Saving for Retirement
Short answer? Right now.
- In Your 20s or 30s? Time is on your side. Even small amounts now will grow into something big.
- In Your 40s or 50s? It’s not too late. You can still catch up. Increase your contributions and make it a priority.
It doesn’t matter when you start—what matters is that you do.
Options for Retirement Savings
Even if your family and friends aren’t saving, you can still get ahead by choosing the right savings method. Here are a few options:
1. Dedicated Savings Account
Open a high-yield savings account just for retirement.
Pros:
- Easy to start
- Accessible for emergencies
Cons:
- Lower interest than investment accounts
- Won’t grow as much long-term
2. Roth IRA
A retirement account that lets your money grow tax-free.
Pros:
- Tax-free withdrawals later
- Flexibility (you can withdraw contributions before retirement)
Cons:
- Income limits to qualify
- Annual contribution limits
3. Traditional IRA
This one gives you tax breaks now, and you pay taxes later.
Pros:
- Reduces your taxable income now
- Easy to open
Cons:
- Withdrawals taxed in retirement
- Early withdrawal penalties
4. Employer-Sponsored 401(k)
If your husband has access to one, take advantage—especially if there’s a company match.
Pros:
- Free money if matched
- Easy, automatic contributions
Cons:
- Limited investment options
- Penalties for early withdrawals
Our Family’s Approach to Retirement
Full transparency: we don’t use any of these right now.
When we move to the Dominican Republic, we want to cut government ties with the U.S. That means we’re preparing for retirement differently—through investing in assets, saving independently, and thinking outside the box.
But for most SAHMs, picking even one of these traditional retirement options can make a huge difference.
Steps to Start Saving for Retirement
- Look at your budget: What can you realistically set aside?
- Pick your method: Choose what works for your lifestyle.
- Automate it: Set it and forget it. Out of sight, out of temptation.
- Ignore the noise: Just because others aren’t saving doesn’t mean you shouldn’t.
The Cost of Waiting
Delaying even five years can cost you thousands.
If you start saving $100/month at 25, you could have nearly double the savings by retirement compared to starting at 35.
Compound interest is the quiet MVP here.
Final Thoughts
The best time to start saving for retirement? Right now. Even if it’s just $25 a month, it matters.
Open the account. Make the transfer. Ignore the people who say you’re “too young” or “too broke.”
Your future self? She’s out there living soft, sipping something fruity, and she’s already thanking you.
You’ve got this, mama!