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Saving for retirement is going to be different for each individual, but you can build a map to retirement with the same foundations. Namely, making sure you save as much as you now. Follow this guide to learn more.
The path to retirement isn't the same for everyone, but the one consistent factor in everyone's plan is always to find a way to save more.
When saving for retirement, the key is not how much you make annually. It’s how much you save each month. It seems like a simple concept, right? It turns out, it’s not that simple. But with a bit of planning and reworking, you can live the life you dreamed of in retirement.
If you want to retire, there’s no doubt that most of us have to save money- and a lot of it! But how much?
The biggest aspect of what determines whether or not you can retire is to come up with “your number”. How much money do you need to live the lifestyle you want?
The “big three” components to finding “your number” are income, living expenses, and savings. Each of these components can drastically affect one another. Consider that what you spend in retirement could be the same, higher, or lower than what you are currently spending.
Set savings goals and parameters on how you will save this amount and you will surely achieve them. For example, create a budget so you know exactly how much you are allowed to spend week to week, month to month, etc. in order to stay on track with the goals you set. Perhaps seeing a financial advisor would benefit you as you lay out the map to your savings goals. Without a doubt, saving more and spending less while you are working is incredibly important.
You could also choose to max out a 401k and savings account. This would be fairly easy to tweak by targeting major expenses, such as entertainment and other non-essential expenses. Perhaps, take one less vacation a year or find outings you can do for free, like going to a museum or park. What if you choose to downsize and live more simply in retirement? This could make your goals more manageable, allowing you to not sacrifice as much in order to save. All of these are great ways to save money now, so you can live the life you choose in retirement based off of your unique situation.
To learn more on the topic of retirement check out my case study on How to Retire by 45.
Advisory services through Capital Advisory Group Advisory Services LLC and securities through United Planners Financial Services of America, a Limited Partnership. Member FINRA and SIPC. The Capital Advisory Group Advisory Services, LLC (CAG) and United Planners Financial Services are not affiliated.
The views expressed are those of the author and may not reflect the views of United Planners Financial Services. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax, or legal advice. Individual needs vary & require consideration of your unique objectives & financial situation