With everything else going on (taxes, spring, school nearing an end, and everyday life), it can be very difficult to focus on planning for the future until it’s too late to do much about it. The older you get, the more you will wish you had made provision for retirement. It is one of the biggest recommendations mature adults have for young adults. It is also something that gets scoffed at because retirement seems such a long way in the future when you are young. Even in your early 30s it seems like retirement is still too far off to worry about with all the rest of the expenses that you have. Well, it’s never too early, and even the smallest amount makes a difference, especially when you are still young. Here are a few things you can start doing at any age that will help make sure you can have a comfortable retirement.
– Calculate your current expenses and determine what you can pay off within the next few months to years. This serves two purposes. First, it gives you an idea of how much you are going to need every month once you no longer have the steady income. Second, it helps you plan for what you will have available to save later.
– Start putting aside whatever small amount you can every paycheck. If you can only manage $5 a paycheck, that’s still better than nothing. Over time that money will gain interest and every little bit you put away will help make it grow. Over time, that interest will add up, like making a mountain out of a molehill, but in a very positive way.
– Pay off the amount owed on your assets. This means your car, house, furniture, whatever items you have that requires a payment plan. Once they are paid off, refrain from purchasing anything large when you get within a few years of retirement. Not having to pay for these things once you are retired will make it so much easier to live within your means.