Retirement Savings Secrets for 2017
Saving small amounts towards retirement can add up to a huge amount of money over time. Retirement savings can become huge, as it is accumulated over long periods. The best time to start is the moment you have a stable career. That is one of the best retirement savings secrets. Retirement savings are best started when you are healthy, young and energetic. By the time, you get older you tend to realize that you should have saved steady streams of income early in life, rather than trying to save enormous amounts later. A 401(k)-retirement account allows you deposit a set amount of money from your paycheck automatically which makes saving easier. You can have an agreement with your employer and also see if they have a proportional matching program with the 401(k) services.
To maintain your current standard of living when you are retired, you should have at least 65-80% of your current yearly income available. As of 2014 the maximum deposit for a 401(k) account was $17,500 annually. If you have more money to save contributing to a Roth IRA is plausible. Money put into a Roth IRA are not taxable, and you can withdraw your funds without having to face any penalties of pay interest. When you have a large amount of savings, investing in the stock market may be very lucrative.
Cutting down on expenses is easy, but takes a lot of patience and perseverance to do.
Some of the everyday habits that could hamper the efforts of saving money include:
- Eating out. It’s expensive and unnecessary. It’s an easy fix, but it’s much healthier and cheaper to cook a meal at home. The money used for buying expensive meals can go towards savings and investments. Those savings could go towards your retirement.
- Going out. Same as above, it’s unnecessary most of the time. It costs a lot of money, we usually just drink, and there are better things to do. Remember the hobbies you used to have? That instrument you loved to play? The sports you used to love? They’re free.
- Energy costs. Investing in solar energy is expensive upfront, however, it’s investing in your future costs. Also, remember to turn off the lights when you leave the house and use AC and heating only when necessary.
- Technology, clothing and unessential luxury. -You can find good deals on clothes everywhere. Thrift shops are always an option as well. You can also unsubscribe from the cable TV and switch the gas-guzzling expensive car for a fuel-efficient one.
- Avoid addictions – heavy drinking is not only a financial burden but a serious impairment for healthy living. Those health costs can be the biggest expense you have. Drugs and smoking are also bad for you and your wallet. Spend your money wisely, and be smart.
We hope these retirement savings secrets helped you, and that you have a happy, healthy retirement!
