Saving for Retirement? What’s your Style?

What is your Saver Style, and more importantly how will that affect your future?

Take this short quiz to find out–Write your answers on a piece of paper and add up your total at the end to find out if you are a Super Saver or if you’re a Super Spender!

1. I have a 401k through my job and an IRA.
a. I have no idea what you’re talking about.
b. I put 1% in my 401k.
c. I am working to allot 4% of my annual income (my company matches) and put my annual allowance into my IRA.

2. I have long term and short term goals that tell me exactly how much I need to put into savings per month and how much I’d like to have saved in 10 years.
a. I’m too young to need a savings account.
b. I’ll start worrying about that in 5 years.
c. Millionaire by retirement!

3. When I have leftover money at the end of the month, I put a portion of it in my savings account.
a. What money leftover?
b. If there’s money left at the end of the month, I’ll put some of it in my savings account.
c. 10-15% of my annual income goes toward retirement!

4. When I hear people talk about savings, I feel…
a. Bored.
b. Interested but clueless.
c. Like I’m on track.

5. When I think about a savings account, I want to drink…
a. A magic potion that will create a savings account for me when I retire.
b. A bottle of wine (or two).
c. A pot of coffee – let’s start this thing now!

If you answered mostly A’s: Don’t worry…you’re not alone! So many young, single women are just starting jobs and trying to stand on their own two feet. No matter what your current income, you’ll eventually need to start saving for the future. What better time to learn than now?! Once you increase your knowledge about savings plans, it may be more attainable than you think! Congratulations for getting out of debt or never having debt at this point in your life!

Crippled Chart
If you answered mostly B’s: It’s crossed your mind but you’re not sure where to go from here. Do some research about pre-tax retirement investments to get knowledgeable and excited about your financial future! Congratulations for getting out of debt or never having debt at this point in your life! All you have to focus on now is saving to be a millionaire in your 80’s!

Motivated without a Map chart

If you answered mostly C’s: You’re totally on track to having the most amazing and care-free retirement of all time! Continue reading up on ways to invest and stay strong on your current path. Congratulations for getting out of debt or never having debt at this point in your life!

Super Saver Chart*These are ONLY amounts saved from your 401k and does not include other possible investments. The recommended percentage of your income to contribute toward retirement is 15%. These amounts are calculated based on the average household income in the US ($50,000) and a typical percentage contributed annually (4% that you contribute and 4% that your employer matches). What to do with the other 11% that you should contribute toward retirement? Look for our “Retirement Investment Options” post coming soon.

What it all means: Notice that starting 10 years earlier can earn you $436,483 more! I am aware that there are SEVERAL factors to contribute to starting your savings plan later in life and contributing less than 4% of your annual income. The main point of this post is to show you that, if you have the capability of beginning a savings account sooner rather than later, it will pay off BIG in the end!

Tax Tip: The amount of money taken out for taxes from your lump sum depend on the tax bracket you’re in when you need that money for retirement. For example, when you retire and no longer have an income from a job, your tax bracket may be significantly lower than when you are working and contributing toward your 401k.

401k: A contribution plan where an employee can make contributions from his or her paycheck either before or after-tax, depending on the options offered in the plan.

Roth IRA: An individual retirement account allowing a person to set aside after-tax income up to a specified amount each year (currently $5,500 annually). Both earnings on the account and withdrawals after age 59½ are tax-free.
*There are other types of IRA’s that allow a variety of annual contribution levels and options.

Retirement Meme


For more information on starting a personal budget, check out our Getting Started tab at the top of the page.

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