That is a great question! One of the biggest issues we face in the financial industry is the cold truth that many people start thinking about their retirement far too late to adequately fund it. There are few conversations that are harder than having to tell someone that their current income will not allow them to save enough to fund the retirement plans they had dreamed of.
Starting early really helps make saving enough a real possibility. By not thinking, "I'll start next week/month/year" the process begins, and allows for enough time to make the possibility a reality. Modern wisdom says to live on your current standard of living, you will need to save 8-10 times that much. If you're barely making ends meet now, you're probably going to want to save even more.
To be on track to make your retirement goals, the rule of thumb in your twenties is save 15% of your income. Starting your savings in your thirties increases that to about 22%. Starting in your 40's? Think about setting aside about 27%. 50's? Better plan on nearly 40%.
You can see how increasingly difficult it can be to make up the ground as you age. It is so much easier to start young, and take advantage of time to help build your savings.
Having time to build your savings becomes easier when things like employer matching on company 401k's and compound interest are available to take advantage of. Investing enough in your company plan (assuming your company is good enough to you to still offer one) to earn their match doubles your savings, and over time, will make a huge difference. Same with compound interest. Opening an account with compounding interest and depositing in it even if it's small amounts and infrequently will lead to large values in that account when you are ready for retirement.
Many people find that saving the money is hard, studies show nearly 60% of all American's don't have enough savings, and over half of Americans entering retirement age are afraid they will not have enough money to retire on. By having a good, working budget, the willingness to cut back on extra's, and some dedication, you can avoid being one of them.
Please feel free to contact me if you'd like some help with a budget, or ideas on how to get started saving, okay? I'm happy to help. Thanks for asking!
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Starting early really helps make saving enough a real possibility. By not thinking, "I'll start next week/month/year" the process begins, and allows for enough time to make the possibility a reality. Modern wisdom says to live on your current standard of living, you will need to save 8-10 times that much. If you're barely making ends meet now, you're probably going to want to save even more.
To be on track to make your retirement goals, the rule of thumb in your twenties is save 15% of your income. Starting your savings in your thirties increases that to about 22%. Starting in your 40's? Think about setting aside about 27%. 50's? Better plan on nearly 40%.
You can see how increasingly difficult it can be to make up the ground as you age. It is so much easier to start young, and take advantage of time to help build your savings.
Having time to build your savings becomes easier when things like employer matching on company 401k's and compound interest are available to take advantage of. Investing enough in your company plan (assuming your company is good enough to you to still offer one) to earn their match doubles your savings, and over time, will make a huge difference. Same with compound interest. Opening an account with compounding interest and depositing in it even if it's small amounts and infrequently will lead to large values in that account when you are ready for retirement.
Many people find that saving the money is hard, studies show nearly 60% of all American's don't have enough savings, and over half of Americans entering retirement age are afraid they will not have enough money to retire on. By having a good, working budget, the willingness to cut back on extra's, and some dedication, you can avoid being one of them.
Please feel free to contact me if you'd like some help with a budget, or ideas on how to get started saving, okay? I'm happy to help. Thanks for asking!