Maurie Backman has been saving for retirement since her 20s and is on track to reach the $1 million mark by the time she retires. She has achieved this by living below her means, consistently funding her retirement savings, and using the power of the stock market to grow her nest egg. Backman and her husband bought their current home 15 years ago, right before having kids.
They decided to stay put instead of upgrading to a larger home, realizing that taking on larger housing payments would limit their ability to fund their retirement savings. They also make other sacrifices, such as driving an older car and taking budget road trips for vacations, to free up money for their nest egg. Backman has continued to save for retirement year after year, even when her income declined or unplanned expenses arose.
Dedication toward long-term financial goals
When her income dropped the year she had twins, her family cut back on spending tremendously to ensure they could still fund their long-term savings. When they faced back-to-back years of home repairs, Backman took on extra work to ensure she could still save.
In addition to consistently saving, Backman has been investing in stocks for many years, leading to significant growth in her portfolio. She recognizes the power of the stock market to help increase her savings over time. While Backman acknowledges that she is fortunate to have been in a position to save for retirement all these years, she also emphasizes the huge effort she has made to get her savings to where they are today.
Because of her consistent saving and investing, she aims to reach $1 million by retirement.
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