Are You Saving for Retirement? You Should Be!

It’s difficult for us, as humans to visualize the future and plan for it. However, it’s important for us to prepare for the future, or we could find ourselves in dire financial straits.

One of the best things you can do right now, before your life gets too far underway, is to save for retirement. Saving for retirement is an important part of preparing for the future and ensuring that your later years really are your “golden” years.

Start Saving For Retirement NOW

It’s easy to balk at saving for retirement. Many people mistakenly believe that conditions have to be just right in order to start saving. Nothing could be further from the truth. In fact, anyone can start saving for retirement now.

The easiest way to save for retirement is to use your employer’s plan. Many employers offer plans, and you can have money automatically taken from your paycheck and deposited into a retirement account. However, don’t let a lack of a retirement plan at work stop you. In the United States, anyone with earned income can open an IRA and begin saving for retirement

It’s so easy to open an IRA, that most people can do it online. All you need is $25 and access to the Internet. Online discount brokers will let you contribute a relatively small amount of money each month. There are some that will accept a contribution of as little as $50 or $100 a month to keep your plan going. Set up an automatic investment plan, and you can contribute each month without having to think about it.

Starting now has a number of advantages. Mainly, though, the earlier you start saving for retirement, the better off you’ll be down the road. You’ll build a better nest egg, and you’ll have more time for compound interest to work on your behalf. Get in the habit of setting money aside for the future, and you’ll get ahead sooner.

Increase What You Save

Even though you can start saving for retirement with a small amount, the reality is that you need to increase what you set aside over time. This means that, as your career progresses, you should increase your retirement account contributions. Each time you receive a raise, increase your automatic contribution to your retirement account. The idea is to continue building up over time.

The more you save, the more you’ll have later. And if you are careful about how you plan your finances, you’ll also be able to have a little fun along the way. Do yourself a favor, and use a retirement calculator that can help you determine how much you need to save each month to reach your goals. Thinking about retirement ahead of time can help you adequately plan and prepare. You’ll be in better shape for the long haul.

Stop making excuses about saving for retirement. The reality is that opening an account and investing in an index fund is simple, and it doesn’t take much money. Get started now, and reap the benefits later.

About the Author

Miranda writes about financial topics for several web sites. Her blog is Planting Money Seeds, and her book, Confessions of a Professional Blogger, is available on Amazon.