How to Save for Retirement in Your 20's
When you’re young, you live in the moment. The world is at your feet. And the world is an expensive place. But the future is in the future, and you have so much life to experience, now. After seizing so many days, in the future, after experiencing so much life, what happens? Do you have a plan?A scarily large number of Americans, and not just 20 somethings, have minuscule retirement savings. One in three Americans has none, not to mention the lack of a pension for many.And those that do have some don’t have enough. There’s also the rising cost of healthcare, and unseen medical expenses. How will you support yourself in your old age?Given the impossibility of working your entire life, here are some things you can do now to save for your future.
Do you need a brand new car, does anybody? No, do you need a McMansion? No, if you’re being told that you need it, you don’t. Prioritize how much, and what you need. Apartments can be shared; you can live with a smaller closet. Take the bus if you have to. Or bike, biking is good exercise.Better yet, have a fast. Spend money only on essentials for one month. The average family saves at least $1,000 a month. A single person, hopefully, won’t save this much.Are you a millennial who’s embarrassed by shopping at the thrift store, don’t be. You will not be the only one there. Millenials love them.
Save Your Money
Take what you saved from cutting costs and invest what you save in a 401K or high-interest savings account. CD’s are also a good option. Put it somewhere it can’t be touched. Don’t risk the temptation. If you want to live on an interplanetary cruise ship in the future, start generating that interest now!
Pay Down Debt
Student Loan Debt is higher than Credit Card Debt in America. Most people can’t pay it off all at once. But you can pay off interest, or above the minimum payment. It sounds like just an extra $10, but it’s not. It is $10 plus the interest on $10. It’s worth skipping a Starbucks run over.The one downside is saving less money. But what you pay off you don’t owe any more. It’s a truly wonderful feeling.
Get Another Job
This is an extreme option. But that house isn’t going to buy itself. Having a part time job on the weekend, and a full-time job during the week will be tiring. But it has paid off Harvard Student Loans years faster.Even if you don’t have to pay off Harvard Student Loans, it’s a good source of extra income. It’s also a great way to build up an emergency fund.
Generate Extra Income
You don’t have to get another job, or a real job, to generate income. Extra or primary. The gig economy has its pros and cons, but there’s a wide variety of revenue generating opportunities. Who do you think writes articles like this?There’s a plethora of opportunities besides writing; there’s babysitting, pet sitting, and working events. Someone has to pass out samples at Sam’s Club.You can also sell your unwanted things. Designer or gently worn clothing, and any other unused goods in decent condition can be peddled online. From a large variety of old stand bys and emerging start-ups. They’re second-hand electronic stores.Cutting costs and spending wisely is the base of any financial saving strategy. Also having a plan, knowing how much you need to save. Where will the money go, what will it be for?When saving and scrimping, you need the motivation to continue doing so. If you have a vision, lay out a roadmap of where it’s all going, it becomes second nature. Your money wants you to follow your dreams. So put it to good use, no matter your age, especially while you’re young.