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Whether you just started your first “grown up” job or you’ve been working for over 40 years, you should make saving for retirement a priority. When planning for retirement, it’s essential to know that you’re not on this journey alone, and there are many ways you can ensure a growing savings account. Whether you’re on track for retirement or need to catch up, we have the best advice for saving towards retirement that will help you reach your goals regardless of your profession or your current stage in life.
Start Saving Today
If you’re starting to put money away for retirement, start saving as much as you can now and allow compound interest—your assets generate earnings on their own over time—to take over. The earlier you begin the save, the more money you will have when it’s time to retire. If you start saving $75 a month at the age of 25, by the time you’re 65, you could have over $200,000 saved.
Stash Extra Cash
Stash the extra cash in your piggy bank or savings account if you have additional funds after paying your bills and other obligations. It would help if you dedicated at least half your extra money to your retirement fund. It’s tempting to splurge on new sneakers, designer goods, or electronics, but don’t fall into temptation and compromise your retirement. Treat yourself to something small but always put the majority in your savings.
Examine Your Budget
When saving for retirement, you should study your spending habits. Create a budget and stick with it! Instead of buying lunch daily, pack your lunch. Look at what streaming services or subscriptions you pay every month and monthly you use them frequently. Take the time to look at your bank statements to reduce your spending and save more.
Open an IRA Account
It would help if you considered opening a self-direct IRA account to help build your retirement fund. A self-direct IRA is a type of traditional IRA that allows you to save for retirement using a variety of investments. With regular IRAs, you’re limited to stocks, bonds, mutual funds, certificates of despots, or exchange-traded funds. However, with a self-direct IRA, you can invest in real estate, precious metals, tax lien certificates, commodities, and other investments.
Create an End Goal
The best advice for saving for retirement is to have a realistic end goal in mind. Before you can start saving, you need to know how much you need to save to live comfortably while retired. This will help you save with a purpose, instead of saving blindly. Having an end goal will also help motivate you to want to save and get closer to your goal. When you’re saving, set personal benchmarks along the way as you pursue your goal.