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Saving for Retirement

January 12, 2018

Saving For Your Retirement

People approach retirement planning differently and some people don’t plan at all. The bottom line is in today’s day and age; Social Security simply isn’t going to cut it. You have to plan and you have to save. It’s never too early (or too late) to start saving for your retirement. Investing in your future retirement doesn’t have to be hard to do. Yes, you may have to cut back a bit here and there, but it will be worth it when it comes time for you to retire. Here are a few questions you should be asking yourself when you think about retirement.

How much income will you need? When you retire, most people don’t want their standard of living to decrease. So, you have to quantify what your monthly spending is – and what it will be in retirement. Then you have to figure out how to achieve sufficient income to meet that goal. Part of it will come ( for most people ) from Social Security – but the rest needs to be saved. Create a savings goal and then stick to it and make sure it happens each month.

Is your savings goal achievable? Don’t set yourself up for failure. Make realistic goals for your savings, maybe 10-15% of your income each month. The important thing is that your goal is achievable for you. Treat your savings as you would a monthly bill; have the payment automatically deducted from your paycheck. Think of it as an investment in your future.

Do you have a budget to track your expenses? Tracking your expenses is a great way to find wasteful spending. Have you ever asked yourself what happened to my money or maybe where did all my money go? This is a question we get asked all the time. Overspending is easy to do if you don’t keep track of the things you buy. You can boost your savings by cutting back on things that you deem unnecessary.

Are you in control of your spending? Give yourself a cash spending allowance each week and do your best to stick with it. It’s so easy to overspend when you use a credit or debit card for your purchases. Focus on paying off those high-interest credit cards and do your best not to use the card unless it’s an emergency. When the card is paid in full, you can put that money into your retirement account and invest in your future.

If you want to have a comfortable retirement you need to start saving as early as possible and save as much as you can on a regular basis. Think of it as an investment in your future. If you need assistance, contact my office at (973) 276-0833 to schedule an appointment.