It can be easy to think that retirement is a long way off, but believe it or not, it can sneak up on you before you know it. Nothing is more important than saving and preparing for your future, yet most of us find that we haven’t saved enough money to retire when we want to or how we want to when the time comes.
To make sure that you’ve saved enough to truly enjoy your golden years, WU has some suggestions on ways to make small sacrifices now that will pay off big later when it comes time to retire.
Get Out of Debt
If you’re carrying around a lot of debt, now is the time to start getting rid of it. Debt from credit cards, personal loans, car loans, and student loans can bring you down financially. Make a commitment to start paying more on your payments to eventually eliminate them and free up that money to save for your retirement.
Put Aside Some of Your Take-Home Pay
Once you’ve paid off all of your consumer debt, except for your mortgage (if you have one), you now have some freed-up money to work with. Look into starting a retirement account for yourself. Many people decide to do a combination of investments. Of course, the earlier the better to start saving, but it’s never too late to start putting money away for when you’ll need it.
If you should invest your money, try to do so in things that you feel confident in and understand. The best thing to do is to find a professional advisor that you trust to help you determine investments for your portfolio that you feel comfortable with.
Some popular types of investments are bonds, where you will lend money to a company, city or government, and stocks, which will allow you to become a part owner of the business. There are also mutual funds, gold and real estate, so make sure to consult with an advisor before you invest to find out the best option for you!
If the company you work for offers a retirement account with matching contributions, then by all means, take advantage of it! Many companies who offer matching contributions match only up to a certain dollar amount. Invest up to that dollar amount, and then you may want to open your own separate retirement account afterwards.
Try Not To Touch Retirement Savings
Remember that any dip into your retirement savings can compromise your ability to take care of yourself in the future. Therefore, before you retire, you shouldn’t spend your savings for any reason, unless it is an emergency.
If you are truly in a bind and need to use some of it early, that is ok! However, your retirement savings is important and it would be wise to spend as little as possible until you actually retire.
Putting aside enough money for retirement is the best gift you can give to yourself and your family. Allowing yourself to be free and independent, and live out your golden years in style will make all of your years of hard work worth it. Have any other tips to help save for retirement? Let us know in the comments!