Why Do American's Retire In Poverty?

Why are American retirees living in poverty? America is amongst the wealthiest nations, yet our elderly have no savings for when they retire.  Could it be we've created an American culture with bad money habits?

It's painfully obvious that the "American Dream" has now become an "American  Nightmare"! People no longer ask "When will you retire?"... Instead they ask "Do you think you will retire?".

Illegal aliens are actually trying to sneak out of the U.S. But Border Patrol officials are not letting them through, for fear they would be out of a job! (I'm only joking... But there might be some truth to this)

With the majority of American's over spending and making poor investment decisions, the question arises, where did we pick up these horrible money habits, and how can we change them?

Family Traditions

I can remember hearing of a time when family values and traditions were passed down from generation to generation (Saving being one of them). Parent's and the elderly used to be the only source for advice, and thus our success was partially based on the advice received. This created a feeling of pride and respect for both parties (young and old), because valuable information was being passed down. Now a days Google is our main source for advice on any topic at anytime!

Advice has now been saturated by blogs (Like Mine! lol), articles, and memes shared across an endless social media platforms. Especially when it comes to the topic of Money, Investing, or Retirement, we don't know if the information we are reading has our best interest in mind! At least when you are being lectured by a loved one or even a friend whom you trust, you know they are not out to screw you over. However this is not an excuse to continue a life of ignorance in finance and money habits. Like anything else in life if there is a "Will", there most definitely is a "Way".

Answer these questions, honestly, about your current life situation (Write them down on paper):

1. Do you believe you are 'Financially Literate'(i.e. Retirement Tools/Strategies, Financial Concepts- R.O.I./The Rule of 72/Dollar Cost Averaging, etc.)?
2. Are you on track to retire at the age you desire (i.e. 65)?
3. Do you believe the current financial institutions are more concerned with you increasing your wealth (Net Worth), or your credit score?

How To Begin Saving Money In 3 Steps

The act of saving money every paycheck is a habit that most people don't practice. We used to take pride in saving, as a Country, but we have replaced that with spending. So how can we re-develop the habit of saving?

1. Pay Yourself First - Instead of paying your bills and then realize you have no money left to save, switch the process! When you get paid,  SAVE ANYTHING! 
2.  Start Small (SAVE ANYTHING!) - Once you get paid, take either a percentage of your check or a dollar amount. Either way, save the same amount every paycheck! Be consistent!
3. 20 Paycheck Commitment - Consistently SAVE this same amount for 20 pay cycles without fail. The hope is that you duo this forever, until you retire, but for now committee to at least 20 pay cycles. Then take a look back and see how far you've come!

A habit is like a skill, and skill's can be learned. You can change any habit by replacing it with another one, if there is a burning desire. Don't scare yourself by thinking of a lifetime of your new habit. But begin today! Right now! Your family and future self are depending on it!

Cheers!