Do you think it is too early to think about it? If yes think about your future. If you are 30 now, you will have to retire may be in 30 years from now on. How much money do you think you need to save in the next 30 years to live a comfortable life thereafter? May be you are thinking around $400000-$500000 is enough. Is it really enough?
Remember you need to have plenty of money to spend for medicine, consumables, utility bills, insurance and many more. However it all depends on the number of years you hope to live after the retirement. Many people seem to underestimate their life span so I would not be surprised if you tell it’s only 10-15 years. But what if you live for another 30 years, say till 90? So it’s always prudent to plan for a longer life span.
Now don’t worry because you have not thought about your retirement at all. In fact nearly seven out of ten Americans in their thirties do not begin to save up for their retirement. So at least you have company.
However, you need to act fast to make up for the lost time. So start saving today not tomorrow. The following tips might help you to find ways and means to save that extra penny.
Start living a simple life or get used to living on less
Think about things we purchase. Sometimes we buy things but never use them. Sometimes although there are products that match our requirement for lesser prices, we buy things which are more expensive. If you get used to live on less, you can avoid spending your money on these unnecessarily.
Find ways to increase your income
For instance you may consider taking up a second job which brings you additional income. If you are willing to sacrifice some of your spare time, there are ample opportunities for those who seek part-time flexible jobs. Remember the spare time you sacrifice today will help you live a better life tomorrow.
Invest money in a more planned and lucrative way
Although it is less risky to put your money in a bank, it is less lucrative in terms of the rewards as well. Alternatively you can invest in the stock market in a planned manner. Though this may consume your time, it will definitely give you more lucrative rewards especially if you have 10 or 20 years left for the retirement, because then you have time to recover from the volatility of the market.
Maximize the contribution to your retirement plan
Starting a retirement plan can benefit you in 3 ways. First the money will grow at a rapid rate. Next the money you save in this form will not be taxed. In addition it is comparatively less risky.
Normally people in their twenties and thirties have many expenses in their minds like car payments, paying off that hefty student loan, or their monthly rent. So I admit that they have some other most important things besides retirement. But it doesn't mean that you should wait till last minute to start saving. The sooner you start the better your future will be. Always remember that the effort you put in today will help you stand up on your own feet on the day you have nobody to care for yourself.
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