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"My plan of winning the lottery isn't working. How can I actually save for retirement?"


Healthcare worker holding a syringe

Dear Vice Column, 

I'm 30 and haven't started saving for retirement. What should I do? I work as a home health aide and have been living paycheck to paycheck for years. I never thought about saving for retirement until recently, and now I'm worried I'm way behind. I fantasize about winning the lottery and spend my extra cash on lotto tickets and scratchers. I'm devastated when I don't win, and then start spiraling about my finances.

- Lotto Loser

Dear Lotto Loser, 

You're not alone in your worries about retirement savings. It's a common concern, and the fact that you're thinking about it now shows that you're already ahead of the game, with 35 years before the common retirement age of 65.

While it may not be feasible for everyone, it's worth looking into opportunities for higher paying jobs within the healthcare industry. This could include working at a hospital or in a specialized field such as occupational or physical therapy. Pursuing additional education or training can also lead to higher paying job opportunities. There are many online courses and certifications that can be completed while working full-time as a home health aide.

Now, let's get to the lotto tickets. While it's fine to dream about a big win, putting too much money into lotto tickets is not a good long-term financial strategy. Instead, start by taking a look at your current spending habits and see where you can make some cuts. Small savings can add up quickly. 

And if you're feeling down about losing the lottery, here's an example of how investing your money instead can add up over time. Let's say you invest $50 per week in a Roth IRA. Assuming a 7% annual rate of return, in 30 years you'd have approximately $237,000 saved for retirement. In contrast, if you continue to spend that $50 per week on lotto tickets, you'll have spent $78,000 over 30 years with the potential to have nothing to show for it besides weekly hope followed by crushing disappointment. 

This illustrates how even a small amount of money invested consistently over time can add up to a significant amount of savings. And unlike gambling, which relies on luck and chance, investing in a Roth IRA is a more reliable and proven way to grow wealth over time. Of course, investing does come with risks, and it's important to carefully consider one's personal financial situation and investment goals before making any decisions. Good luck!

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