Living in one of the highest cost of living cities in the nation made saving for retirement a very difficult task.  Los Angeles-Long Beach California had a composite index of 136.4% on 2010.  The issue is the cost of housing.  That is 207.1% or more than twice the national average.  Costs for other things like food, utilities, and transportation are just slightly over the national average.  A middle class income left little for savings.

Even if you don’t live on the Pacific coast or in Manhattan you are probably unprepared to meet retirement expenses.  That is the results according to a survey by Fidelity Investments.

The problem with this survey is the sponsor.  Fidelity Investments wants to encourage you to increase your savings rate because managing savings investments is their business.

We live in a consumption economy.  The stores keep trying to sell you the latest, greatest whatever.  There is hardly a day that does not have a Macy’s ad in the newspaper.  Internet web sites all have links to the things you probably didn’t know you needed.  The credit card only helps you to buy the stuff you really do not need.

Ban credit cards in your house. Shop at Sears and Penney’s.  Stay out of Macy’s, Lord and Taylor’s, and Nordstrom’s.

Before you pay a single bill each month pay yourself in the form of a fixed amount of savings.