10/07/2024
You DO want to retire one day, right?
And since staying at company for 30 years and earning a pension is essentially a thing of the past.... It's up to you to save for it.
Yikes! How much do I need?
Reading an Edward Jones article today and it blew me away.
https://www.edwardjones.com/us-en/market-news-insights/investor-education/investment-age/average-retirement-savings-age
Someone turning age 50, who makes $100,000 per year needs retirement savings/investments of...
$460,000 -- $600,000
to maintain their current lifestyle.
Gulp! That's what I said too at first.
However, there are ways you can set yourself up for a wonderful retirement.
And it is never too late to start.
Let's begin here -- one step at a time.
#1 If you can... Start early and automate
The power of compound interest is your friend. The sooner you start saving, even small amounts, the more time your money has to grow.
Even if you are starting later than you would have liked to, you still have time.
Automate your savings, like setting up regular contributions to a retirement account through payroll deductions or automatic transfers. When you "pay yourself first" you prioritize your future self and remove the temptation to spend that money elsewhere.
#2 Track your expenses & budget!
The ugly "B" word. No one likes it, but it is critical.
Understand where you spend money to identify areas where you can cut back and free up more for savings. Create a realistic budget that accounts for essential expenses, future goals, and some room for fun.
#3 Pay down debt with high interest rates first
Prioritize paying off credit cards and other expensive debts. Consider consolidating debt to lower interest rates or balance transfer options to free up more cash to save and invest.
How can you begin implementing these 3 steps TODAY to start making changes?
Your retirement is up to you. And it is helpful to understand the numbers.
Check out this article: https://www.edwardjones.com/us-en/market-news-insights/investor-education/investment-age/average-retirement-savings-age