If you’re just beginning to put money away for retirement, start saving and investing as much as you can now and let compound interest have an opportunity to work in your favor. The more you can invest when you’re young, the better off you’ll be. If a 25 year old starts investing $75 per month, they will have more money by age 65 than someone that starts at 35 years old investing $100 per month due to interest.
- Rather than thinking, “I will start my retirement for a New Year’s resolution,” START NOW!
- Make sure to at least match your employers’ 401k contribution percentage.
- Check with your HR department to see if you employer offers Roth and Traditional 401k plans and see which better suits your retirement plans by asking more questions.
Another way to start saving for retirement is to rein in your spending. Examine your budget and see where you are spending too much money and what you could start saving for the future. This will also help you to set up a realistic spending plan for when you are retired.