Yes. We’ve all heard the saying “you’re never too young to start saving for retirement.” Saving money can help prevent you from scrambling when you’re approaching retirement age. It can also help with unforeseen expenses along the way.
Life is full of surprises that include unexpected and sometimes burdensome obstacles like car accidents or health issues. That said, life will also include events you’ll plan for like a wedding or buying a house. Whether planned or unplanned, both cases always seem to require that you spend more money than you anticipate. Other common expenses include:
- Buying a car Raising
- Supporting an aging family member
- Paying off student loans
Are you saving enough?
One of the easiest ways to save for retirement is with a 401(k). This is but one of the many suggestions the IRS recommends for saving. Even contributing a small percentage of your income regularly can grow an account into a sizable retirement nest egg. Other tips for getting closer to your financial goal include:
- Speak with a financial professional.
- Take advantage of an individual retirement account (IRA) or other saving mechanisms.
- Know the difference between “Roth” and “traditional.”
- Pick the account that works best for you and begin saving.
- Understand the savings options available through your employer.
- Set money aside in accounts you can access prior to retirement.
Make plans now, to have money waiting for you at retirement so those unanticipated costs don’t sneak up on you. Life promises surprises along the way and with the right preparation, you won’t have to worry when the unexpected happens.