Planning and saving for retirement can seem daunting. It’s hard to think about something so far in the future and know that you have to make strides now in order to ensure a secure retirement lifestyle. But it doesn’t have to be difficult! With some simple strategies, you can save more and feel less overwhelmed by retirement planning. Here are some easy ways to start saving for retirement in your 20’s and 30’s.
Start with Your Employer Benefits
If you’re fortunate enough to have an employer-sponsored 401(k) plan, take advantage of it! This is one of the easiest and most effective ways to start setting aside money for retirement. Contributing even a small amount from each paycheck will add up over time, and your employer may even match a certain percentage of your contributions—which means free money! If you don’t have access to a 401(k) plan through work, there are other options like Roth IRAs or traditional IRAs that may be better suited for your needs.
Make Saving Automatic
Set up automatic payments from your checking account into a savings or investment account every month. This will help you stay on top of monthly payments without having to manually transfer money each month—saving you time and money in the long run. It also makes sure that you aren’t tempted to spend extra cash—if it isn’t there, then there’s no temptation! Plus, if you’re able to set up automatic transfers straight from your paycheck into an IRA or 401(k), you won’t even miss the money as it goes straight into the account before you can even see it.
Start Small and Increase Incrementally
When first starting out, it may be difficult or even impossible to save large amounts of money at once. That’s why it’s important to start small and then increase the amount you’re contributing over time as you become more comfortable with the process and as your income increases. As a general rule, experts recommend setting aside 10-15% of each paycheck towards retirement savings. If that feels like too much at first, start with whatever amount of money you feel comfortable with and gradually increase that amount each year until you reach 10-15%.
Research Investment Options
Researching different types of investments can help ensure that your money is properly invested with minimal risk involved. Mutual funds are one such option that allow you to spread out any potential losses by investing in multiple stocks at once; depending on how aggressive or conservative of an investor you want to be, this could be a great way for millennials starting out with limited funds who want broad market exposure but don’t want too much risk involved.. You should also look into investing locally or through apps like Acorns that allow users who don’t want their entire portfolio tied up in stocks or mutual funds invest smaller amounts at a time into real estate projects. All these options can help diversify your portfolio while still allowing millennials with smaller budgets get started on the road towards financial freedom!
It’s never too early (or too late!) to start planning for retirement. With just a few basic steps—like taking advantage of employer-sponsored benefits, setting up automated payments and researching different investment options—investing in yourself by starting early on retirement planning is one of the best gifts you can give yourself!
