5 Great Ways Youngsters Can Start Saving For Retirement Before It’s Too Late
retirement (Photo credit: 401(K) 2013)
It’s easy to ignore the future because it seems so far away, but eventually you’ll be sitting on your porch thinking about all the mistakes you made as a youngster. Don’t let one of those mistakes mean a low income because you didn’t put away enough money over the years. When you retire it could be the greatest time of your life because you’re finally free to do whatever you want. Unfortunately that costs money so we’re going to discuss a few ways you can make your retirement as comfortable as possible.
Time is your greatest ally
This one might sound like common sense, but you’d be surprised by the amount of people who don’t think they need to save any money because they still have their whole life ahead of them. The years come and go very quickly, so by the time you do decide to start putting more money away you’ll have wasted years of your life. You need to start putting away whatever you can afford now and when you finally come to retire I guarantee you’ll think it’s the best decision you ever made.
Don’t keep spending more
When you first start work you won’t be earning a lot of money so your lifestyle won’t be extravagant. People hate this and as soon as they start earning more money they want a lifestyle to match. This is okay up until certain point because you don’t want to keep eating noodles and beans all your life, but you’ll eventually have to put a stop to it. If you keep spending more money as soon as your paycheck increases you’ll always be living month-to-month.
You won’t miss it
Start putting your money away before you even see it sitting in your bank account. If you haven’t seen it you won’t miss it. Eventually you’ll get into the habit of expecting a smaller amount of money in your account each month and your lifestyle will reflect this. If you don’t put your money away automatically you’ll definitely end up spending it because something always comes up. Try to set up extra contributions that get taken straight from your paycheck which is even better.
Get a second income
You could get a second income which will allow you to put even more money away each month. These days you don’t need to buy property or get a second job. You could easily try to make money online in your spare time. People have a lot of fun buying and selling things on eBay. Do you have a novel inside you waiting to burst out? If you enjoy what you’re doing to make extra money it won’t feel like work and it won’t feel like you never have any time to yourself.
Manage your mortgage
If you already have a mortgage you’ll know it’s going to be where most of your money goes over your lifetime. Can you begin to imagine how much money you’ll lose over the years because of interest? It’s not only the money you pay each month but also the lost interest you’d have received if it was sitting in the bank. People who are smart will pay close attention to their mortgage and whenever they see an opportunity to save money by remortgaging they’ll jump on it.
Will you make that mistake?
Even if you don’t earn a lot of money at the moment you need to put something away. A little goes a long way when you leave it to accumulate over 40 years. You want to be the retiree sipping cocktails on sandy beaches. Don’t be the one sitting in front of the TV wishing for a life that will never arrive.
Author Bio:
The author of this article, Jenny Wadlow, is a professional freelance blogger, currently writing for First World Mortgage, well-known mortgage lenders in Connecticut. She uses her free time to indulge in reading and sports activities.
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Category: Retirement
