Start Saving for Retirement in Your 20s!
You’re 20 years old. You are young and have a whole life ahead of you. No need to save for your 60s just yet, right? Wrong! Experts show that the earlier you start saving for retirement, the easier it will be when it is close. Here is why!
When you are young, you have fewer financial responsibilities. You can afford to put away an equal monthly sum for your retirement. While you are still unmarried, have no kids, your spending is minimal. The rest can go to your savings. At the same time, remember about compound interest. The earlier you put the money up to saving, the greater will be the final sum.
Are you convinced now? Let’s take a look at how you can start saving. Firstly, map your entire retirement plan. It doesn’t have to be in great detail. A general picture will suffice. Secondly, calculate how much of your paycheck you need for your daily life. Put the rest in a savings account. Last but not least, don’t touch the money before the actual retirement! Even in a financial emergency, resort to alternative help if possible.
Remember that you can save in many different ways. You can put paychecks up for saving. You can invest in property, in a small business, or even in the stock market. In your 20s, the way you save money is not so important. The main goal is to lay the ground for your future self!