Retirement. Good news fellow millennials, it’s only about four decades away! That’s a long time, right? Why should we even be thinking about retirement? Well, in short, because it’s important. You do not want to have to continue to work into your 70s. You do not want to have to worry about your finances later on in your golden years. You’ll just want to enjoy life and relax after decades of hard work and cube life. This is why investing money into your retirement fund from an early age is important.
Yes, I get it. We have rent to pay, student loan debt to pay, cars and/or commuter fees to pay, food and drinks to buy, and more. Life is expensive. Well, bad news everyone, life is probably only going to get more expensive. (Look, another reason to start saving early!) You want to be secure when you finally reach the age of retirement, and it all starts now. Remember, the more money you have in your retirement fund, the sooner you can stop working!
Choose a job with benefits.
When applying for jobs, make sure that an employee retirement plan is offered, and that the employer contributes. Even if the employer only contributes one percent, you’ll still be getting one percent more in your retirement fund than you would have otherwise. Benefit packages are one of the main things you should be looking at when choosing a job. Choose the job with the best financial perks.
Contribute a percentage of every paycheck to your 401k.
Yes, once again, I get it. We have bills to pay. Life is expensive. Blah blah blah. I promise that a small percentage of each paycheck (even if it’s only 1%) is worth the investment. Over time, this money will grow. Aren’t interest rates beautiful when they’re in your favor?
Have a savings account you don’t touch.
That’s right, have a separate account other than the one that’s linked to pay off all of your credit cards. Have a separate account that you don’t touch. It can even be at a separate bank than the one you use more often if that’ll make it easier for you. Put small amounts of money in it each month in addition to the money you put away for your retirement. I contribute a percentage of my paycheck each month to a 401k, but I still have a separate bank account set up where I can deposit small $10 or $20 amounts I may receive over the course of the month. This money just sits in the bank and collects interest. Every dollar helps!
Don’t Compromise Your Retirement Fund.
Do not stop putting money into your retirement fund because there’s a new five star hotel in Punta Cana you want to try. I assure you, you can still have tons of fun at a nice three or four star! Be smart about your spending habits, and do not stop putting money into your retirement fund solely for something in the now. It may seem tempting to use this money you’re saving before retirement, but you will regret it later in life.
Make Aggressive Investment Choices.
We’re young. We don’t have to be as careful in our investment choices as someone who is closer to retirement. We can choose more aggressive funds to place our money in than someone in his or her fifties can. The values of these funds may go up and down right now, but in the long run, it’ll be worth it.
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