After struggling with my finances for more time than most people realize is possible, I began thinking more seriously about what I could do to make things right. I began working hard to go through and identify challenges that I was faced with, including the fact that I had several kids that cost a lot of money. I began thinking of ways to work on saving cash, and it was really amazing to see how much of a difference something like skipping drinks with dinner and working on finding foods we could make at home could really be. I wanted to start a new website all about creating a more solid financial plan. Check out this blog.
In Your 20s? 3 Tips For Saving For Your Retirement
When you are 20-something, you probably are not thinking about saving money for your retirement. After all, you have 40 or so years to do that. This is particularly true when you have bigger things to worry about. You are currently living from one paycheck to another, barely able to make your rent, and you have a ton of debt piling up. However, if you start now saving for your retirement, you will be a lot better off than you could have ever imagined. Truth be told, taking small steps now to save for your future retirement can actually help your financial lifestyle now. Here are three tips to help you get started.
Tip #1: Start Your First Retirement Account
While it is true that your retirement is several decades away, you should start saving now, in your 20s. The main reason for this is because there will be more time for your money to grow. So, check with your employer to see if they offer a 4011(k) program that you can sign up with and begin contributing to. In many cases, your employer will match your contribution. Some employers will contribute to your 401(k) even if you don't. If your employer does not offer a 401(k), then you may want to consider an independent account, such as an IRA.
Tip #2: Keep Your Budget Tight
While you may have a paycheck each week, you will want to live frugally whenever and wherever you can, especially when you first graduate out of college. Rather than splurging and buying all brand-new furniture and décor, head to the thrift store or get hand-me-downs from family and friends. In addition, keep track of your monthly budget so you know what you can and can't afford. Your savings should be used towards big-ticket items, such as your student loans, a new car, or a new home.
Tip #3: Don't Buy Impulsively
Impulse buying is actually a thing, and it doesn't take long for you to blow your entire budget on items that are completely unnecessary. So, when you go out shopping, try to make a list before you leave home, as this will help you stay on track of what you actually need, and try to maintain the will power to not purchase items that are not on your list. When you can, use coupons to save money while shopping.
For more advice on saving for retirement at a young age, reach out to a retirement planning advisor.