Who doesn’t look forward to not having to work when they’re older? But to make that happen, you must start right away. The sooner you begin saving money, the more comfortable you’ll be in your retirement – or the earlier you can retire. Get your long-term savings ready now so you can relax later!
Add to your long-term savings every month. Start as early as possible, so your money will have more time to work for you. If you’re in your 20s and save $200 a month, you can make your goal more easily, while if you’re in your 40s when you start, you might need $600 a month to meet the same retirement goal. You don’t want to have to deal with a huge drop in your allowance when you retire and then have to tighten your budget suddenly, so plan now.
You should also be depositing money into your 401k every month. You decide how much money you want moved from each paycheck to your 401k – even starting with 2% could make a huge difference in the long run. Some employers will match your contribution. Take advantage of that offer and sign up for it right away! The difference between this and a savings account is that you can’t easily take money out of your 401k for emergencies, as it’s intended to stay there until your retirement. It’s a great way to make sure you stick to your plan!
Beginning your savings journey by setting aside a little at a time can make all levels of saving much less daunting, and much easier to manage. Watch our Ask SunWest episode on Long-Term Savings, then check out the rest of our series. Have more questions on savings or other financial topics? Send us a message or leave a comment so we can answer it in a future video!