64% of Americans aren’t ready for retirement. Are you one of them?
Planning for retirement is something many people think is easier said than done. With the financial pressures of raising a family, paying for healthcare, and everyday life, retirement is something that can fall to the background.
Don’t let the sparkle of your golden years grow dull. Take these 5 easy steps for successful financial planning for retirement today.
- Start Saving ASAP
The earlier you start saving, the better off your retirement fund will be. Even if you haven’t been able to stash away as much money as you’d like in the past, starting as soon as possible will set you on the right track.
Money sitting in a savings or retirement account will compound interest. The longer it stays in there, the more interest it will earn.
Also, take advantage of your employers 401K match program. It’s essentially free money that can add up quickly.
- Put Your Saving on Autopilot
“Out of sight, out of mind” is the easiest way to save money. By setting up your retirement to automatically come out of your paycheck, it’s financial planning for retirement made simple.
Most employers let you contribute a set amount or percentage of your paycheck to a retirement savings plan. Setting it as high as you can afford to go will take the pressure off you to save. Plus, it takes away the temptation to spend it on other things.
- Set a Budget and a Goal
Saving for retirement without a plan could leave you with financial surprises later on… and not in a good way.
Know how much you’ll need to retire comfortably. Then set a budget to help get you there. A budget can help you see where you need to spend money and where you can cut back to add to your savings.
You can trim some fat from your budget by eating at home more often, cutting the cable cord, and canceling subscriptions of services you don’t need or use.
- Seek Advice from a Financial Advisor
If you need help figuring out how much you need to save, seek the financial advice of a professional.
A financial advisor will set down with you to discuss your goals, how you want to live in retirement, and what your current budget is. From that, they can lay out a savings and investment path to follow that will get you to your end goal.
- Stash Extra Funds
When many people are living paycheck to paycheck, it can seem impossible to save as much as you need for retirement. To help make some of that up, stash away extra funds when they come your way.
These extra funds could be tax refunds, bonuses from work, or money from a side gig. Even money you receive from birthdays or Christmas can add interest in a savings plan.
Make Your Future Bright with Financial Planning for Retirement
Plan a future you can look forward to. By knowing how financial planning for retirement will work for you, you can live the golden years you deserve.
Want to learn more ways of adding to your savings? Check out some of the other articles on our site!