Solo Agers are people (aged 50+) who never married or had children by choice. This means that Generation X is heading toward their retirement years. This is the Do-It-Yourself generation.
We are a generation of survivors. Whatever life throws our way, we meet the challenge. “Live today, fight tomorrow” sometimes becomes the mantra of a survivalist. That mantra can leave you in a dangerous space.
We live our lives like teenagers – we think we’re invincible and nothing can harm us. We believe because we are in good health and financial standing today, we’ll be ok tomorrow. Our financial plan is to roll the dice, cross our fingers, and hope we don’t roll snake eyes.
Wake-up Call 1: The Universe is talking to you
Dailey turned 55 in 2020, around the same time that Covid hit. He started to experience severe joint pain, especially in his hands. He is a carpenter, which means his hands are his livelihood. However, his joint pain prevented him from working for long periods.
The pain kept him awake at night. He finally went to see a doctor. Over the age of 40, hearing the words, “Oh, that comes with age” from your doctor is commonplace.
Dailey is a Savvy Solo that experienced the downside of aging for the first time. At this point, he should ask the following questions:
- What will I do if I can’t physically perform my duties?
- If I get fired, do I have enough money to keep going until I find something else?
- At my age, will I be able to find something else?
- What would I do if I got sick?
- Can I afford to get sick?
- Without a support system, how long can I age in place?
Kinda strikes fear in your heart, doesn’t it? At first, it struck fear in Dailey’s heart too. In six months, his symptoms disappeared, and Dailey returned to business as usual.
This was a little wake-up call from the Universe. It was a gentle nudge to get Dailey to look at his circumstances and make changes. Have you had a wake-up call that you ignored?
Wake-up Call 2: Social Security as a retirement plan
Now, if this love letter from the Universe doesn’t make you jump up and take action, I don’t know what will. At Dailey’s age, he can retire in 12 years. He can retire in 2034.
Did I mention social security funds will deplete in, you guessed it, 2034? Our government won’t cut us completely off; they will reduce our benefits. We will get 77% of the benefits we were promised.
So that payout gets slashed to $1,283.20/month, which generously puts us just above the poverty line.
As stated in our last article, “Among people 75 and older, the labor force is expected to grow by 96.5% over the next decade. Now, we can see why.
Are you thinking what I’m thinking?
I just realized it too. If 96.5% of people aged 75 will have to work, that means the retirees who built a retirement account didn’t save enough. Fifty-one percent (51%) of those over 50 have retirement accounts. The average retirement account is $141,542. That means most retirees will burn through their savings and have to go back to work.
Prepare for the future
I don’t know about you, but I have no interest in donning the “paper hat” and standing on my feet all day at some McJob. You have a lifetime of experience. It’s time to think outside the box and use your brain instead of your brawn to build a healthy financial status. Start with these steps:
- Calm down– there are several articles at The Savvy Solo that will help you calm your mind so you can focus on a solution. If all you are focused on is “not enough,” your eyes cannot be opened to the road leading to abundance. Example: Naomi was determined to save money, but she had a lack-mentality. So, every time she saved $1,000, her car would break down, sending her back to square one. She had to learn to take control of her mind that constantly whispered doom and gloom.
- Find your tribe – you have the expertise to help someone else. Others in your tribe are there to help you. As you age, you are probably discovering being an island unto yourself doesn’t work anymore.
Quite frankly, financially, you have never made it on your own:
- You needed someone to hire you to make money
- You cannot grow a business without employees
- If you have a product or service, you need people to buy it
You need support personally and professionally. Being a Savvy Solo is knowing the difference between standing alone and when there’s strength in numbers.
- Find your niche online and get moving– start small as an online solopreneur. That’s right, to win, you have to create your own game. Ok, I feel eyes rolling and I hear grumbling. Don’t worry; I have answers to your questions.
- Competition is fierce online.
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- So, competition is fierce offline.
- But what if no one likes me/my product?
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- Ok, but you’re facing bullies at work who don’t like you now, so what’s the difference?
- It’s all a scam
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- Are you joking? That scam called Amazon made $469B last year. Warby Parker, a digitally native brand eyewear company, made $540.8M.
- I’m an old dog; I can’t learn new tricks.
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- You’re a Savvy Solo; do you have a better plan? I hate to make myself vulnerable, but here it goes (deep breath). Have you noticed; The Savvy Solo is being built one week at a time. If all you have is an hour per week, give it your best shot. Trust me, it adds up.
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- Unless you have millions saved for your retirement, what do you have to lose?
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- Last month I received my pay raise of $1,650/year – Woo Hoo! After taxes, it came out to be $0.57/hr. – D’OH! You know what? I think I’m ready to take my chances in building my online business. After seeing what Corporate America is willing to offer, I think I like my odds.
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- I’m an old dog too. However, when I see statistics like the ones listed above, it’s time to jump in with both feet. I choose not to be a statistic.
- What happens if I fail?
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- But baby, what if you fly? You won’t know unless you try.
Listen, no one is asking you to be the next Bill Gates. To paraphrase Gary Vaynerchuk, you don’t need to make a billion dollars. You need to make enough to live a lifestyle that allows you freedom of choice and to live in a place with all the support you can handle. Are you with me?
Open your eyes. Use this simple retirement calculator, and let’s make a plan to help us be Savvy Solos for decades to come. See you in Part IV – Solopreneurs, entrepreneurs & digital native brands.