National Save for Retirement Week strives to raise public awareness about the importance of saving for retirement. The week provides an opportunity for people to reflect on their personal retirement goals and determine if they are on target to reach those goals. For more information keep checking the Payza blog for tips on money management.
Whether you’re a 20-something whose retirement seems like a lifetime away or your golden years are just around the corner, there’s no need to over work yourself. It’s never too early nor too late to start saving for your retirement and to secure a solid financial foundation for your old age.
At Payza, finance is our business, so we’d like to share some of our knowledge with you in order to help make sure you have a happy and comfortable future.
As any investment professional will tell you, a long time-frame is a major advantage. The sooner you start saving for retirement, the more time the money you put aside has to grow. Here are some tips to help you start laying the foundation:
- Make it automatic: At the beginning of your career, it’s unlikely that you’ll be earning a high salary. But if a portion of every paycheck is automatically deposited directly into your retirement fund, you’ll find that you miss the money a whole lot less.
- Leverage your raises: The reason you generally make less money early in your career is because you’re in the high growth part of the curve. Raises come more frequently in your early years, so you can use them as an opportunity to increase your contribution to your retirement fund without having to cut back from your everyday budget.
- Spend less on the money you save: With many retirement plans, you don’t have to pay any income tax on the money you put into your savings. By putting the money away now, you get to keep more of it later.
For Late Starters
If you’re already well past your 20s, planning for retirement can be a little trickier, but that’s all the more reason to start saving now. Follow these tips to ensure that you keep you maximize your savings:
- Pay off debts: The more interest you accrue on your debts, the less money you will be able to set aside for your retirement. Stop paying only the minimum on your credit card – remember, paying a little more each month will translate into big interest savings year after year.
- Eliminate unnecessary expense: Do you really need collision coverage on that beat-up old car? All those big monthly payments could be going into your retirement fund. If you can safely eliminate any of them, you should. And what about all those fancy electronics you had your eye on? Before you go all out to buy the top of the line models, consider your needs (and your means) and then only get the tools and devices you truly need.
- Downsize: An empty nest is a big expense. It costs a lot of money to heat and maintain all those empty bedrooms. Downsizing can cut your mortgage payments substantially and put enough money in your pockets for some travel in your golden years. Or, if you do have extra space, consider renting out your empty rooms to help pay off your mortgage a bit quicker, or to help earn some extra cash to put away for retirement.
No matter how far along the road to retirement you are, if you haven’t started saving already, start now. It’s up to you to lay the foundation for a comfortable future, or before you know it, it could be too late.
Do you have a hard time sticking to your carefully laid-out budget? When money is within reach, it’s all too easy to spend it, even when you know you shouldn’t. An online payment solution can help you manage your funds. With the Payza e-wallet, you can eliminate that risk. Next time you make a budget, stick to it by loading only what you can afford to spend into your Payza e-wallet and leave credit cards out of it.
Disclaimer: Information presented on the Payza Blog is intended for informational purposes only and should not be mistaken for financial advice. While all attempts are made to present accurate information, it may not be appropriate for your specific circumstances.