PBS FRONTLINES: The Retirement Gamble

Watch The Retirement Gamble on PBS. See more from FRONTLINE.

Retirement is big business in America, but is the system costing workers and retirees more than what they’re getting in return, asks FRONTLINE correspondent Martin Smith.

NPR Media: What's Changed About Saving For Retirement?

Given the realities of the federal budget, how should younger workers factor in future benefit cuts when they plan for retirement, and how should they be saving? We hear from people in Nashville, Tenn., about their plans, and Weekend Edition Sunday host Rachel Martin talks with Ben Birken, a certified financial planner, about saving.

Trying to save more? Consolidate your bank accounts, researcher says

I believe that your average person could benefit from any strategy that will simplify their finances. However I don't think people who take an active role in improving their finances will be affected by a single or multiple accounts anyway.

(phys.org)We all know we should save some money for a rainy day. Of course, that's easier said than done when you really, really want that new iPhone. Or that new designer jacket. Or both. But a University of Kansas researcher has a suggestion for people trying to spend less and save more: Consolidate your multiple bank accounts into one main account.

According to new research by KU School of Business assistant professor Promothesh Chatterjee, individuals will save more and spend less when they have a single account compared with multiple accounts. Chatterjee's findings run counter to the conventional wisdom that people should spread their earnings across different accounts to increase their savings. Moreover, his findings have implications for policymakers trying to encourage saving among large populations of people.

"For years, the conventional wisdom has been that spreading your money across various accounts encourages you to save," Chatterjee said. "Nowadays, the average American has multiple liquid accounts, typically a combination of checking and savings accounts. But our research finds this is the wrong strategy to encourage saving. We find that individuals are more likely to save if they have only one primary account, rather than many accounts."

I keep multiple accounts, so money that needs to be used for bills, savings, investments and spending money are separated. I like to know they each account has a purpose and helps me out when it comes to budgeting.

How The Poor, The Middle Class And The Rich Spend Their Money

The graph below shows average household spending patterns for U.S. households in three income categories — one just below the poverty line, one at the middle of the income distribution and one at the top of the distribution.
via: NPR

Lost Art: How to Microwave Popcorn in a Brown Paper Bag

Try it for yourself: Expense Tracker Worksheet

An Expense tracker is a great idea to keep track of all your expenses. A tracker can be as simple as a small pad, spreadsheet, an budget app or an online tracker. Whatever tool you can use that will work best for your needs.

When you decide the method of tracking your spending, start saving your receipts and tally your expenses every day. It will be a lot of work at first, but over time you will find that a daily money tracking system is an easy habit to keep.

However, I know that it can difficult for people to maintain their expense tracking overtime, but that is not what this exercise is about. What I want you to do is to see where you hard earned cash is going.

What does afordable mean to you?

I believe that when I say I can afford something that I can purchase it and it not have a detrimental effect on my bottom line. However, for most people it means that I can pay for it and not go into the red.

No most will look at these two statements and say the are just about the same thing. they are not. Being able to make the payments does not mean that it is not affecting your bottom line.

Lets go to the extremes to show what I mean. If I wanted to by a candy bar (one time only) for .50 I could easily afford it. After all being the type of person I am I have a budget for such items. Now lets take the same candy bar and buy one everyday for a year. I can still pay for that expense but it will effect my budget. Will I go broke, no but it will reduces the amount of room I have to play within my budget.

Now replace that candy bar, with any number of things that come up into a conversation about weather you can afford something. Like that new smart phone, that car note that's only 400$, or any other item that you hate to see the bill. You don't need to put yourself in the hole for material possessions. 

What is a Bitcoin?

Couponing

Most people say couponing isn't worth the time. However, for about 10 minutes a week, you can save on monthly groceries and products when you make an effort. All you just need a newspaper, the weekly grocery fliers and a bit of organization, no need to join a websites.

Don't mistake coupon use for an excuse to buy more than you need. The best way to save money is by buying only what you need and not letting any of it go to waste. Make sure you are not using coupons for the sake of using coupons.

So give it a try, and see if you can walk away with more of your money still in your pocket.