Why And When Should You Start Saving For Your Retirement?

Why And When Should You Start Saving For Your Retirement?

Start Saving For Your Retirement?

Norman Vincent Peale, the American minister and author once said, “Live your life and forget your age.” Wouldn’t it be really wonderful to be able to live your life the way you want to live it, without having to bother about your age? More often than not, life seems to slacken in pace post-retirement. This is the time when an individual should be able to sit back and enjoy life. But often due to the lack of adequate retirement fund, the post-retirement phase brings with it a lot of worries and tensions. If you want to lead a stress-free life after retirement, you should start planning and saving for it properly. This article provides you information about why and when you should start saving for your retirement.

Reasons to save for your retirement

Financial independence is important in all phases of life, including your retirement. Some of the top reasons to start saving for your retirement are as follows:

To spend your post-retirement life as you wish

The way you spend your retirement life will depend on the amount of money you have invested or saved for your retirement. Whether it is about fulfilling your post-retirement dreams or your basic needs like food, clothing, and other usual expenses, you will need money for everything.

To meet your medical expenses

Medical expenses can be a big issue to deal with, especially in your old age. It is a known fact that the threat of medical conditions increases with growing age. If you are not well-prepared financially, you can land yourself in trouble as health-care is becoming expensive by the day.

To avoid continuing to work after retirement

There is a big difference between working for the pleasure of it and working under compulsion. If you do not want to spend your retirement years working under compulsion so that you will be able to pay your bills, you should start saving for your retirement suitably.

To avoid being dependent on anyone

If you do not want to depend on anyone for your post-retirement expenses, you have to plan accordingly. Be aware that your social security benefits may not be enough to fulfill all your retirement living expenses. Hence, saving for your retirement is the only way to navigate through your retirement years smoothly.

When should you start saving for your retirement?

The earlier you start saving for your retirement, the better. Ideally, you should start saving for your retirement in your youth itself. Make sure to plan for your retirement in such a way so as to get tax advantages. Certain powerful savings vehicles, such as RRSP enables you to save for your retirement while providing you tax benefits. You can start building your retirement fund with their help and remain prepared for a stress-free retirement life.

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Follow Your Dreams, But With Informed Caution

Know the difference between settling and giving yourself time.

We've all been there. As children, some of us wanted to be superheroes and scientists, actors and doctors, and best-selling authors. But as we have grown into adulthood, we realized that some of our dreams were not feasible. One day, you wake up and realize that the world is actually NOT your oyster.

Not to be negative, but someone has to be realistic. For example, I used to LOVE science growing up. I thought I'd be curing life-threatening diseases such as diabetes and cancer because it was in my family I wanted to be the one to save everyone. Fast-forward to high school and college, I realized I simply couldn't do it. I couldn't do well in science when I hit college- it just wasn't my strong suit.

Then, I had to think, what am I actually good at out of all the subjects I take? I am not good at memorizing, so no history or science. I was terrible at math once I hit high school. I'm not good at computers. Then, that other dream from when I was really young set in- I wanted to be a writer. I wanted to write books. But knowing it was hard to make it, I needed to make a skill of writing usable, so I majored in Journalism. Fast-forward to a year and a half later in the major, many jobs and internships I applied to and never heard back from made me nervous.

"Is writing something that can make you money?"

My family asked. The truth is, yes,

but you need to get your foot in the door somehow. It is always that first step that is tough to get through. The issue is writing, along with other artsy jobs such as fashion, acting, singing, etc, is a risky profession. It is not your typical 9-5 job, well depending on what kind of writing you do.

When graduation is almost around the corner, and you are not hearing back from any jobs it is very nerve-wracking. You may be asking yourself: How will I feed myself after I graduate? How will I manage to pay off my student debt? My other bills?

Well, there really is only one answer. Look reality in the face and get any job off the bat you KNOW will make you money.

Apply to be a receptionist, a stocker in a grocery store, a cashier in a restaurant or store. Maybe become a waitress and bartender. Anything that FOR SURE will help you pay your bills while you are chasing that dream that everyone makes you doubt you'll achieve. DON'T listen to the negativity. But DO listen to reality.

Do not be stubborn. Take whatever job you can get and don't feel discouraged, your time is coming!

If you are like me and really want to make money off of writing, do some research and do it on the side. One day, you may get your big break and get that dream job you are chasing. That is because the goal is NOT to be miserable when you are working. So even if you do have to settle for a while, let that motivate you. If it is risky, it is also exciting. So yes, give yourself reality checks, but don't give up!

Cover Image Credit: Joshua Newton / Unsplash

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What Would I Do If I Won The Lottery?

I can only imagine all of the possibilities!

What would I do if I won the lottery?

This is one of those questions that everybody gets asked at least once in their lives. There are many things one can do with lottery winnings. The possibilities are almost infinite. At this point in my life, these are the things I would like to do should I ever win the lottery

1. Pay off my credit cards.

My primary goal with any and all forms of income I receive is to pay off my credit card balances. The quicker I can pay down those credit cards, the higher my credit score will go back up. Something such as lottery winnings would be a quick and easy way to cross paying these credit cards off this list.

2. Pay off my student loans.

One thing that I am not looking forward to dealing with after earning my Bachelor’s degree this summer is having to pay back my student loans. Being an adult student in an online General Studies degree program in a school in another state makes it that much harder to find any applicable scholarships to apply for.

3. Quit my current job.

Who would not enjoy some time away from having to work? Having no bills to pay, even for a temporary amount of time, would better allow one to consider taking some time off to keep what is left of their sanity.

4. Purchase a better Wi-Fi system for my house.

One of the most frustrating things I deal with at my house is that with the Wi-Fi router downstairs on one side of the house, and with my room upstairs on the other side of the house, is that Wi-Fi signal is not great at all. Any decent solution to this issue is an easy $100-$400, which I would rather not have to fork over, especially right now.

5. Put more money into my savings account.

Your money will not save itself without some start. I have an online savings account, which has a higher rate than a savings account in a bank such as Chase and is also more difficult to access funds. Even if you have a savings account at your local bank, you should start one either way, as having some savings is better than having none at all.

6. Also, start and fund a 401k.

If by some miracle I live to be old enough to retire, the minimum age which will likely be in the 70s by then, I will need a financial net set up.

7. Invest more in stocks.

Stocks can be another great way to set some money aside for savings purposes. However, unlike a typical savings account, shares can change a value in an instant, so do not put all of your savings in there unless you like to live dangerously.

8. Give more tithes to my church.

As an unofficial rule of thumb, one is to donate ten percent of their income to their church. I know that I have not given even close to that much money to my church, mainly because I cannot spare that much.

9. Purchase more professional clothing.

With my work’s dress code changing and becoming stricter, I now have to worry about buying more clothes, which is one of the last things I want to be bothered with. Not to mention if I have a job interview for a new job, I will need more professional attire.

10. Undergo a weight loss treatment.

With a newer fat freeze treatment available, especially since this particular procedure eliminates the need for surgery, I have been eager to give it a shot, which is not exactly something that is cheap.

11. Buy more video games.

There are many video games I would like to play. With both time and money not being on my side, my options are rather limited. Even having a few hundred dollars would make a significant difference here.

Cover Image Credit: Pexels

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