When you’re young, your retirement seems a long way off – after all, it is decades away. However, that doesn’t mean that you shouldn’t start thinking about your financial future sooner rather than later. When it comes to failing to save for the future, one of the most common excuses that people tend to use is: ‘I’m too young to worry about that yet”.
If you’re someone who thinks this way and believes that you’re too young to start thinking about your financial future, then think again. Ask anyone older and they will tell you that the years quickly slip by and all too soon you will end up in your mid-fifties with limited savings, panicking about your financial future. Do you want to be in that position? No – then you need to start taking your financial future more seriously.
The fact is that the more time you have on your hands, the more pleasant the experience of saving for retirement and your future becomes. When you are having to rush the process because you’ve failed to take saving seriously at a young age, you end up feeling stressed and under pressure. Whereas, when you take the process of saving more seriously from a younger age, it becomes a more enjoyable process.
The chances are that you are still paying off various debts, such as student loans, which may be why, until now, you’ve decided to put off saving for your future. However, you can no longer put your finances on the backburner, you need to take steps to start saving for your future sooner rather than later.
Bearing that in mind, below is a guide to some of the steps that you should consider taking when it comes to preparing for your retirement and financial future. Read on for everything that you need to know!
The fact is that the sooner you begin saving for your ‘golden years’, the more enjoyable these years will be. However, knowing how much you need to save and what goals to set can be tricky, especially if you’re unsure of what you would like your future to look like. However, that being said, there’s no need to panic.
The best thing that you can do is think about your hopes and dreams for your entire life and use these as a starting place for your retirement. Think about your living costs and how much you will need to cover them. Will you own a home by then outright and only need to worry about utilities and food or will you need to be able to pay rent?
Perhaps you already have a number in mind when it comes to your retirement bank balance. If this is the case, sit down and workout what you will need to save each year combined with interest, to achieve that amount.
Having goals in place will help to make the process of saving for your retirement seem easier and less stressful, as you will know what you’re aiming for.
Do Your Research
When it comes to your financial future, it’s essential that you take the time to do your research. Spend some times reading up about what options are available to you, such as a 401k or an IRA. Go online and utilize resources such as Accuplan, for instance, to better understand what options there are available to you.
If you fail to do your research, then you will struggle to properly understand the processes that you need to consider taking when it comes to saving for your financial future. If you find that reading about your options isn’t as helpful as you would hope, then you might want to consider seeking the advice and support of a financial advisor.
Put a Plan of Action in Place
The most important step that you can take is to ensure that you have a plan of action in place to start the savings process. It doesn’t matter if you are only saving a small amount each month, just as long as you are actually beginning to save up.
A good benchmark to start off with is to set aside 10% of your pay cheque each month and put it into a high yield savings account, where it can slowly grow. This might only be a small step to take but at least it’s a start.
There you have it, a few useful pieces of advice for starting to plan for your financial future.