by Christopher Smith

Created on: May 22, 2008   Last Updated: May 29, 2008

I'm going to tell you something you probably don't already know; for a blue-collar worker it's nearly impossible to save enough for retirement! But you can certainly try . . . you certainly should try! What are some of the secrets to building some sort of stockpile of funds as you approach retirement? Here's what I've done . . . or would have done had I thought more about it.

Do you have kids that are 'picking your pocket' at every turn, crying that need a new computer, nose ring, tattoo or trinket? Fine. What you might want to do in lieu of digging into your pocket to satisfy their craving is assist them in finding creative ways to earn the money they need. Then put what you would have given them into a savings account that has a high return, such as ING. That solves one unnecessary expense.

And what about college? Do your kids think you're the family ATM? Nonsense. Show them how to really get what they want . . . by earning the money to afford what they crave, including that ivy league college they have 'their hearts set on attending.' Of course, if you haven't been preparing them for self-support, you're already behind the 8-ball. What to do? Have your attorney draw up an agreement between you and each college-bound child. Each child agrees to repay you the cost of their education in monthly installments beginning with the completion of their second year in college (that's the equivalent of an Associates degree program). Then, upon completion of their fourth year (equivalent of a Bachelor's program), and every two years thereafter that they are in college. Upon graduation, they continue installments until they have at last repaid you. Hint: as each installment arrives, immediately deposit it into that ING account.

Are you a smoker? Quit now so that you'll be around to enjoy your retirement. I quit in 1983, and I'm glad of it. One pack a day is about $5.00; that's more than $1800 dollars a year! Put that into your ING account and in twenty years that original amount will be well over $62,000. And just think how healthy you'll be by then (it takes about 7 years to clear the lungs on that ugly nicotine).

Do you like to indulge yourself in those little extra special lattes, nights out with the boys, expensive dinner dates every week? You know the expenses you are incurring; they show up every month on your credit card statement(s). But of course, you're playing it smart: you only pay the minimum payment required on your credit card statement(s). You poor sot! You're racking up expenses that you'll never be able to pay off! Been there, darn near done that! But I got smart, well at least my wife smartened me up. Dump the credit card expenses by gradually paying cash for the little things, like gasoline, food, theater. What you really have to do is wean yourself away from the habit of simply reaching into your wallet to extract that tempting little plastic card to satisfy all of your expenses. You'll thank me later . . . really.

Do whatever you can to keep yourself healthy and well physically and mentally. Take care of your teeth. Maintaining your health costs less than frequent hospital stays, visits to specialists, expensive medications (even if you do get them from Canada).

What you really need to do is, think outside the 'CARD.' And, find creative, alternative means and ways to accomplish what you used to do that won't cost you extra to achieve your goals.

If you put into practice most if not all of what I have outlined above while you still have about 20 years to retirement, you'll probably sock away about a million dollars!

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