Lose Weight Now!

In this blog post, losing weight now does not imply a Chris Christie-type desired weight loss, but rather the instruction to lose the debt girth that is restricting you from achieving financial security, and freedom from financial stress!

Everyone knows it’s tough out there: Investments. Savings. Self-directed. Managed. 401k. IRA. Roth. Tax. Early-withdrawal penalties… oh dear!  Getting educated about various savings and retirement plan options is already intimidating; trying to figure out how much you should have saved by now… perhaps even scarier!

According to moneycrashers, at this age you should have this saved:

22 years old   $1,720 saved

25                    $8,083

30                    $23,880

35                    $49,002

40                    $88,132

50                    $239,429

60                    $582,974

65                    $817,391

The numbers above assume an average rate of return (6.9%, generally easily achievable), inflation (3%) and lifespan (85 years assumed, i.e. retirement age +20 years).

Have you fallen behind?  You’re not alone.  Here are some statistics that may surprise:

- 39%: households nearing retirement do not have a formal retirement plan

- 35%: (only) of Americans confident they can rely on social security

- 47%: for a couple, both 62 years old, there is a 47% chance that one of them will live to be 90 (Are you prepared to live 25 years on your retirement savings?)

- 10%: Early withdrawal from retirement plans, 10% penalty plus taxes

There are two primary reasons why you may be experiencing difficulty in achieving your desired BMI (in terms of age vs. savings/investments, rather than weight vs. age/height):

1. You may be living beyond your means, and

2. You have difficulty servicing your accumulated debt 

Lose the debt, and you’re on your way to slimming down quickly, and fattening up your savings. 

Start with the first line above, i.e. start by living within your means.  If you cannot afford to pay cash for something – especially something small, rather than a major purchase, like a house – just forgo it.   

Question yourself: “Do I really need these new shoes”, “restaurant meal”, etc.  Find a friend who will help rein you in if you’re too weak to manage or limit your spending habits!  And NOT the friend who will say: “Common, you only live once", "Treat yourself", "What are you working for", "You deserve it", etc. 

Then… attack your debt girth with a vengeance!  You may be surprised to see the binary result: less spending + less debt (or lower debt repayments) together = wealth creation.

Now, while you’re attempting to manage your debt girth, also make a pledge to yourself to diligently manage your girth in general.  Don’t eat pre-prepared meals!  Food labeled healthy, organic, low trans-fat, low in carbs, low cholesterol, etc. usually ARE NOT AS ADVERTISED!

The reason why manufacturers advertise food that way is because it is anything but healthy, organic, etc. and if they did not pretend that is was somehow good for you, you wouldn't buy it.  If it were healthy, the manufacturer would not have been able to pack it into a box, packet, can, etc. and store it on a shelf for months!  Simple… right?

So, rule #1 is that any food presented in pretty packaging should be avoided whenever possible.  The second rule makes this methodology as simple to follow as the two financial rules above – move, get active!

All you have to do is eat (mostly) healthy meals, small portions 4-6 per day, at regular intervals to avoid hunger (because then you'll eat more than you have to), and go for a walk (or similar) every day.  Not rocket science, just common sense required!

Life is really that simple, if you make it so!