- Start saving, keep saving, and never give up – If you’ve already started saving (for anything) you shouldn’t stop. It can be an extremely rewarding habit. If you’re not currently saving up for anything, you should start now. Start with baby steps, and then increase the amount you save each month. The sooner you start, the more time your money will have to grow. You can make a priority out of saving. Make up a plan, stick to it, and set some goals for yourself.
- Know your retirement priorities – You should know by now that retirement isn’t the cheapest, especially in America. Many experts say that you will need 70 to 90 percent of your preretirement income to live peacefully, or at least to maintain the standard of living after you have finished working. You should take charge of your financial stability. Start planning ahead.
- Contributing to your employer’s retirement savings plan – If your employer comes to offer you a retirement savings plan, for example, a 401(k) plan, don’t hesitate. Sign up and contribute as much as you can. Your taxes will be much lower, and your company will kick in more, which will only make automatic deductions easier. Compound interest and tax deferrals can make all the difference in the amount you will get at the end. Find out more about your plan. How much do you need to contribute to get the full employer contribution? How long do you need to stay in the plan to get all the money?
