One of the biggest financial goals that anybody who works a steady job strives to achieve is, saving enough money for retirement. The longer you live, the greater the nudge to save enough money in your retirement account becomes. Not as easy as it sounds considering the fact that if you’re fresh out of university, you would probably have about 40 to 50 years of a working life in front of you, while 15 to 20 of those years would be spent trying to pay some debt off. It is somewhat true that the 20 to 30 year olds of today live and spend with little or no regard towards saving for retirement.
It is also another truth to consider that the earlier you can start planning towards your retirement, the more feasible it becomes for you to actually retire and start investing in lives other than your own.
This post aims towards guiding young adults who are ready or are already planning for retirement.
Save, Save And Save More Than You Saved Before: Letting your savings grow is a very powerful tool that you can harness in the future, but the hard part is nurturing the will power to decide to stick to your saving program when you start seeing how much you’ve accumulated over a period of time. £100 a month continuously for year means £1200 and that total yearly saving for about 50 years gets you £60,000. Retirement starts looking good soon as you think of the compound interest you start to gain.
Take advantage of the time you have to calculate how much you can afford to save, create an excel sheet to stick with or find an online tool to help you with your planning.
Live below your normal standard: Living within what your standard will keep you from falling into any debt deficit, however it will not assist you in building a retirement fund that you can bank on. Living below your standard creates room for extra money that could go into your savings. Instead of just getting by, evaluate your life and get rid of anything that brings unnecessary or unwanted costs.
Use a budgeting tool: Having a budget is a smart way to start planning for your retirement, if you are unsure about how much you spend or how much you reel in on a monthly basis, it becomes difficult to know how much you can actually save. There is a wide array of helpful tools online that can assist you in setting up a budget.
Match any employee sponsored plans: Any employer encouraged retirement savings plan such as a 401K or a personal pension plan that is available at your workplace is an advantage to your retirement saving and should not be looked down on. This is free money as your employer matches the amount you contribute and lets you save and invest a small portion of what you are paid before tax is collected.
If you are in your 20’s, this is the best time for you to start thinking about your retirement plans.
Are you part of the millennial generation and saving for retirement already? let us know your thoughts on how you are planning on accomplishing this feat.