Retirement Saving ( What You Want To Know Wednesdays )

It’s never too early to start saving for your retirement. The earlier you start the more time you have to build up your retirement savings. You may think that a few dollars here and there won’t make a difference, but it will. Learnvest.com has complied a list of tips to help you start saving for your retirement.

Skip One $20 Purchase a Week – You can spend $20 easily… we all can. You may be spending your money on things that are nice to have such as Starbucks coffee, happy hour, fast food, etc. Try eliminating these small expenses. One week of saving may not seem like a lot but over the course of a month you can save $80 dollars! Money that you put into your retirement accounts like IRA or 401 (k) are pre-taxed, meaning you are not taxed on that money.

Learnvest.com uses this as an example: “For example, if you put $80 a month into a retirement account with hypothetical growth of 7% a year, and did that for 30 years, you’d have more than $90,000 at retirement. By contrast, if you waited and made contributions for 15 years, you’d have less than $25,000 waiting for you. See the difference starting early can make?”

Slash a Big Monthly Spending Category by 10%

Take a look at your spending for the month. Are there any trends? Do you go on shopping sprees monthly? Do you eat out every day? Do you go to the movie theater often? Try cutting out the excess spending buy cutting down the amount of shopping you do, or bringing your lunch to work for a week out of the month instead of going out. Like any life change, it is easier to start small to stick with steady improvement.

To view the whole article click here.

                                                                                                                                                                *Learnvest.com


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.