How To Save When You’re Young…
When you’re young it’s easy to think of retirement as far off, something to be thought about or planned for another day. But in reality, the earlier you start planning, the more money you can save. And the more you have saved, the better you can live once you’re retired!
If you want to walk away from the rat race when the time comes and really enjoy your retirement, then today is the day to start planning and start saving!
Learn To Manage Your Budget
I completely hate this bit, but it’s necessary. Balance the books, guys. Get out all your bills and paychecks, use a spreadsheet, and figure out exactly what you earn, how much tax you’re going to pay, and where your money is going every month.
This can be a bit tricky when it comes to “one-off” expenses and changing bills like heating, but it’s necessary. Also, don’t leave off things that seem like they’re irrelevant, like that $1 bottle of Diet Coke you buy every day. That still adds up to $30 a month; it’s definitely big enough to figure in the expenses column. An app like Mint can help.
Set Up A Personal Savings Or Retirement Account
Do not become the boring person at the party talking endlessly about savings accounts — but do quiet research into them on the side. And don’t just go with the bank you know and love: shopping around for personal savings accounts, where you can automatically deposit a bit of your income every month and restrict how much you can dip into it, is a part of the landscape. Shop around for good interest rates and low fees.
Retirement accounts might seem like a ridiculously far-off thing, but they ain’t. Our generation appears to be more sensible about this than the one before, and most of us think we’re probably going to work past 65 — and will need to fund what we’re doing after that ourselves. Setting up an IRA or individual retirement account might be a good idea now, to make sure you’ve got enough to splash when you’re 70.
Know Your Work’s Policy On 401ks
If your work does offer a 401k plan, seriously, get on the list now. That way, you won’t need to set up your own IRA, and your work will invest your money for you, and might match how much you put in. You also don’t pay tax on your contributions until you withdraw it (usually once you’re past retirement age), and how much tax you pay on your income right now is calculated after they’ve taken the 401k contribution out. It’s a pretty good deal — though, of course, you should talk to finance-savvy mates and planners before you commit.
– via www.bustle.com
Tips For Smarter Savings And A Better Retirement
Think you can’t save? Think again! You don’t have to deposit huge sums in your savings each month in order to make a difference – especially when you look at the long term effects.
The earlier you start saving and the longer you foster your nest egg, the more your money can make you money! Below are a few great tips for easy ways to save now and make for a better, happier retirement down the line.
Only use one payment method.
Tracking expenses can be very difficult if you are using a couple of credit cards, your debit card and cash. The key is to keep things simple and by only using one payment method it will be infinitely easier to track your expenses. In our household, we use one credit card for all our expenses. When the bill comes in, we know how much we’ve spent in the month. We also do this so that we can collect travel points in one place. The key is to make sure that you pay off those credit card bills every month.
Set up a monthly automatic savings.
Once you know where your money is going, you will see that you are paying everyone else first and saving what little you have left over. It’s time to break the pattern and start a monthly savings plan right away. Your future is too important for you not to pay yourself first.
The earlier you start the better.
It’s never too late to start. so start right away. Time and compound interest have often been referred to as the eighth wonder of the world. When you understand the power of compound interest, you can’t afford to wait any longer.
Something is better than nothing.
Investing money regularly needs to become a disciplined habit. No matter how much or how little money you have, you need to get into the habit of disciplined saving. Even if it is as low as $25 per month, something is better than nothing.
– via Retire Happy
What’s your current saving plan? Do you have a firm budget yet?