Young People Give Up Retirement Dreams
Most twenty year old’s today are wizards with the Internet, iPods, texting, etc. Unfortunately they are not as proficient when it comes to financial matters; and maybe for good reasons.
They grew up in unending economic turmoil. Investment returns have been inconsistent throughout most of their lives.The retirement plans of their parents may currently be in the tank.
When people in their twenties are asked about investments, stock markets and retirement planning issues they give a glassy stare. They wonder why they should bother investing for their retirement.
Young People Need To Refocus On Retirement
It’s About Attitude
Red flag. If you continue with that negative attitude you will convince yourself that it’s okay to never invest for your retirement. That is the wrong attitude. If you do not invest in your own financial future who will? Absolutely no one cares about your financial future as much as you do, no one.
A New Attitude
You are never, ever too young to invest for retirement. The best time to start preparing for your retirement is a long time before you reach retirement age. Retirement preparation starts when you start your first job.
A Wiser Attitude
When you are in your 60’s and no longer feel like working, if you don’t have enough money to make ends meet you will be forced to continue working.
If you think that’s not true, talk to people who are at the right age to retire but cannot retire due to lack of money. If these investors had started saving money for retirement when they were your age they would have more than enough money to retire. You can avoid that financial dilemma by the financial decisions you make.
Your Retirement Moves
How Much Will You Need?
Start with a retirement calculator.
Regardless of your age, a retirement calculator can set you in the right direction. It will help you determine how much money you will eventually need to retire. Once a retirement calculator gives you a figure, aim towards that number. Make it your financial bulls-eye.
Where To Invest?
Invest your money where you get the best tax advantages. This would be an Individual Retirement Account or a 401k retirement account. If your employer does not offer a retirement plan, open an IRA at your bank or insurance agency.
Where’s The Money?
You only have so much disposable income. If you waste your money you will have little left for investments. Develop good financial habits and you will find extra money to invest.
Skip The Debt
Debt is a bad financial habit. Debt is a waste of good retirement investment money. If you have to go into debt to pay for something, maybe you really don’t need it.
Skip The Spending
Overspending is another bad financial move. Adjust your lifestyle so you can cut back on expenses. Eliminate frivolous spending by shopping a new way; only buy based on needs vs wants.
How To Get Started?
It’s okay to start small. When you start in your twenties you have forty years for your money to grow and compound.
It’s easy to open up your account. If you are investing in your employers retirement plan your contributions will be automatically withheld from your paychecks. This way you won’t even miss the money. If you are working through your bank or insurance company they can set up automatic deposits for you.
It All Depends On You
Your financial future depends upon you. You are in the driver’s seat. If you do not control your spending, debt and investing who will?
You either pay now or pay later. You either spend lavishly during your working years and never retire. Or you live a frugal working life and have a lavish retirement life. The choice is yours. Make a good decision.