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Spending too much during your working years

Even if your income is more than satisfying during your working years, that’s no reason to spend like there’s no tomorrow. There is and it’s called retirement.

Robert Steen, a certified financial planner and retirement advice director at USAA says you should always think twice before making major purchases like an extra car. Instead of paying for extra car payments and insurances, you could put away the money in a retirement fund and take advantage of compound interest.

See also: 13 Key Money-Management Tips Every Retiree Should Know

Misjudging your retirement financial needs

How much money do you think you will need for a comfortable retirement? Assuming you retire when you turn 65, “a general rule of thumb is to have about 12 times your final salary saved by the time you retire,” says Steen.

But if you take into account the possible medical costs and other unexpected financial shortfalls you might have to cover in retirement, it would be wise to save as much as possible while you still can. On that note, here are 20 Smart Strategies to Boost Your Savings and Retire Rich.