Did you know that as many as 64% of Americans anticipate retiring with less than $10,000 in savings?
Financial planning is stressful in such an unstable economy, so it’s understandable why lots of people don’t want to think about the future. However, the good news is that saving for your retirement doesn’t have to use too many resources.
Do you want some help with retirement planning? Keep reading to learn 5 simple tricks that can give you peace of mind.
1. The Sooner You Start the Better
You might not think that you have to plan for retirement if you’re in your 20s, 30s, or even 40s, but the truth is everyone is better off the earlier they start. The reason why is that early savers will only have to set aside a small amount of money each month and then they can let time help them. The longer interest can work in your favor, the more your money can snowball into a huge lump sum.
2. Invest in the Right Retirement Account
The most responsible way to manage finances is to open up a retirement account and make regular contributions. A 401-K account is a popular option for workers because many companies will match your contributions, which is free money. There are also IRA and Roth IRA accounts, which give you the option to pay taxes on the money upfront or only when you withdraw.
Older Americans can still get in on all of these benefits. Read this guide on Roth IRA catchup to learn more about your options.
3. Chip Away at Your Debt
Interest can make you rich over time, but it also has the power to rob you. This is why it’s always a good idea to try to eliminate your debt as soon as you can so that interest won’t work against you. One popular debt elimination tactic is called the snowball method, which involves putting all your resources toward your biggest debt, then working down to your smaller ones.
4. Figure Out Where You Want to Live
The place where you retire can have a huge impact on your cost of living. Take some time to research where you’d like to retire so that you can enjoy your surroundings while keeping your expenses low. Many Americans expand their searches abroad because the American dollar can stretch farther in many countries.
5. Care for Your Health Now
Most retirement planning tips focus on money, but you shouldn’t forget to care for your health, too. When you invest in your health now, you could save thousands of dollars in the future by avoiding expensive health conditions. Go to the doctor at least once a year, adopt a healthier diet, and try to squeeze in 30 minutes of exercise each day.
Retirement Planning Is Easier Than You Think
If you need help with retirement planning, then these tips will guarantee a more comfortable future for you. Remember: it’s never too late to start saving.
Did you enjoy this financial management guide for retirement? If so, our site has plenty more personal finance articles that can boost your savings. Check out our blog so you can start building more security.