So many people don’t even think about their retirement until they begin to get close to it. However, wise financial planning with goals, such as retirement, is something that should start as soon as you begin earning your first paychecks.
I know that you are looking at trying to catch up. Perhaps you are in your twenties and are looking to get out of debt and get the things you want at the same time. Those of you in your fifties are looking to get out of debt and get ready for retirement.
The younger you are, the more advantages you have financially. I know someone who started saving wisely in high school and today she has never had a car loan, yet drives a fairly new vehicle. The only debt she is facing is a 15-year mortgage on her first home, which she was able to put down 20% on. Wouldn’t it be nice if we were all in that situation?
Well, we can be. We just have a few things to line out. The longer you wait to start managing your finances wisely, the more youu will probably have to get in order before you start realizing your goals.
Developing good spending and saving habits, learning to budget and taking the time to invest will help eliminate debt, save for your future and even build you a fortune. Start in your twenties, and life will be a lot less stressful. Just ask someone in his fifties about the stress of getting closer to retirement without savings and a lot of debt.
For example, a 25-year old can invest $2,000 a year for eight years and have more at the age of 65 than a 35-year old who invests $2,000 a year for 32 years.
If you are currently under a lot of debt, you know that you cannot live the rest of your life this way. No matter where you are in life, you can turn it around.
The basic steps are:
Identify you short term and long term goals.
Pay off your debt.
Invest towards your goals.
It sounds too simple. It really isn’t difficult. Find ways to meet these steps. Believe me, when you are 64, you will thank yourself. There are many resources available through you public library, on the internet and through financial advisors. You may find that someone in your family, business or group of friends can help suggest places to go for information.
When you start early, interest has time to compound, you put less in out of your pocket to get more in return. The longer you wait, the more you will have to sacrifice out of your budget to reach the same goal. But it is a necessary sacrifice.
With financial planning, it is never too late to start. But it is never too earlier, either.