Saving money for retirement in your 20s isn’t difficult to do. If you are really serious in preparing for your retirement, you should start during your 20s. But the problem is your lifestyle. Not everybody think about saving and investing for retirement during that years. Many people during their 20s just want to enjoy life. They go to school, they look for a job, find a job, earn money and enjoy their income. You’re lucky enough if you start saving money for your future during your 20s. You have many years preparation in saving for your retirement. Imagine if you are 21 year old now and planning to retire at 60, you have 39 years preparation.
But if just started saving for retirement during 3os, your years of preparation will be shorten. If you prepare to retire at 60 and you started saving money at age 35, you only have 25 years preparation. The idea is to start saving for retirement at a young age so that you can acquire enough funds to use when you leave the workplace. In my previous article here in Retirement Planning IQ, I mentioned that you we should build enough retirement savings to retire comfortably. Always remember, in LOVE, age doesn’t matter. But, in preparing for retirement, age does really matter.
Why You’re Saving for Retirement?
You don’t want to become emotional when you retire because you are worried about your finances. You are worrying because you think so much about “MONEY”. You should retire happy and rich. To achieve that goal, you must acquire enough funds (not pensions nor even money from your loved ones). But from your investments and retirement savings.
Learning financial planning is a must. It can help you retire with complete freedom. What do I mean by complete freedom? You have a time freedom and a financial freedom. We need time freedom when retire so that we can go anywhere we want to because that years we supposedly not working but relaxing. On the other hand financial freedom can help you retire comfortably because you can buy anything you want; a house, a car and can afford a grand vacation.
Saving for Retirement via 401k Plans
There are many retirement options you can choose. One of these options is the popular “401k plans”. Saving for retirement can easily done through 401k plans. It is an automatic savings and investing when you are working in a company or organizations. Ask your employer how to contribute to 401k plans and make these funds as your retirement funds.
Read the different ways to prepare for retirement so that you will have an idea on how to start saving for retirement. Believe me, anyone especially and employees can easily save money for their retirement. But be sure to prioritize saving money than spending money.
Because in your 20s, your mindset is not on saving and investing for retirement, it is for “enjoyment”. Think about the future before it’s too late. If you want to retire early and retire millionaire, then start saving for retirement early. During 20s is a recommended time to start saving and investing for your retirement.