If you've reached 30, it's time to start planning for retirement.
Planning for retirement is so important, and yet most people wait until it's too late. That's such a big mistake. If they would just talk to the people who are approaching retirement now, and ask them how they feel about what's about to happen to them, they would hear tales of woe and regret. Most people nearing retirement haven't saved or invested nearly enough to have a comfortable retirement. It didn't have to be that way.
If you're 30, now is the time to fix the next 30 years by leaning how to
. It doesn't have to be a lot saved suddenly at one time. That's why a person should start planning for retirement when they are young. They can put the power of
to work for themselves.
But what are most people thinking about when they turn 30? They are thinking about marriage, family, purchasing a home, and cars. They aren't thinking about the future. Well, except for the next vacation. But that's not far enough into the future to think.
Someone once said that "Youth is wasted on the young." In many ways they are right. Someone young is thinking less about their needs for the future as much as their wants in the present. That's natural, but more needs to be done.
Having said all of the above, there are some people turning 30 who are thinking about retiring early. But they are in the minority. And here's a key point - those who want to retire early are usually just dreaming. Dreaming is not enough. It takes planning for retirement and then taking action to bring those plans into reality.
So, how about you? Are you starting a savings plan? If not, I highly recommend you start one now. And if you are married, as a couple you need to sit down and talk about how you both plan to retire early.
Marriage is about two people, not one. Your spouse needs to talk about their vision of the future. The two of you could have opposite visions of how retirement will look. You need to work on those differences now. What if she wants to live in California and you want to live in New York. That's a 3,000 mile difference of opinion.
Once you've got your vision of a retirement future you need to start creating the detailed plans you'll need for saving and investing. The following is a list of ideas about planning for retirement to help you reach your goals faster and with better results. You want to do so in such a way that you will still having plenty of money to meet your needs and wants today.
First, start saving now. You can begin by reading about different ways other people suggest for saving early. We have articles on this site and there are other articles and blogs on the internet showing you ways to save. The younger you are the better.
When you read something, ask yourself how you can adapt it to your lifestyle and age group. It is never too early to save. If you're older... well, it's never to late to save either. You just get more bang for the buck if you start planning for retirement early. You get to use the power of compound interest to work for you.
Then there is budgeting. And at times... re-budgeting. Is setting a budget easy? No. That's why so few people do it. But don't join an easy crowd. It can make all the difference in the world for your future. Especially if you get in the habit of budgeting early.
As a couple, planning for retirement becomes even harder. But what's important to realize is that it's even more important for a couple than for an individual. If one spouse is saving at the same time another is spending recklessly, little good is accomplished. Planning for retirement becomes almost impossible.
If you will actually do it, actually sit down, and take the time to prepare a budget, you will be able to see where any problems exist and need to be delt with. Preparing a budget will also help you project what you might have at retirement. But be forewarned, it will also open your eyes in a major way. You'll see where you are simply throwing money away.
When planning for retirement, another important place to look is at work. It will be time well spent if you sit down with the person where you work who can answer questions about the savings plans offered by the company. Say for instance that your company matches the money you put in, then you know that here is an important place to put your money. Nothing will bring you better returns than where a company matches your contributions.
Think what happens if you participate in matching funds, but another employee does not. Can you see how far ahead you will be over the years? Especially if you find ways to save outside work so you can participate to the maximum in the matching funds. Matching funds from the company you work for is like found money.
Here's another important point when planning for retirement. You need to stay healthy. As people get older, their health problems tend to multiply. Most people do not do all they can to stay healthy when they are young. They take for granted their health. Once again, don't join an easy crowd. Exercise, nutrition, regular doctor visits all contribute to a healthy lifestyle.
If you watch your health, when you retire you will receive great benefits. When you see others who haven't taken care of themselves, you will thank yourself over and over for taking the time to develop good health habits.
For more articles about saving read these articles
Become an intelligent borrower
Dollar cost averaging
How to get rich
To read more articles, click here for the entire Article Index.
To go to the top of this page on Planning For Retirement, click here.