Retirement seems like it is so far away that it is probably the furthest thing from your mind right now, especially if you just started your career, we’re talking decades away from happening. What you should realize is though, is that the earlier you can contribute, the more it will compound, and the more you will have to enjoy when you need it. Avoid all of the putting retirement savings off excuses and start contributing now.
It’s Not a Priority Right Now
That might be a valid excuse for your high school, college, or even immediately out of school and into your career, but the longer you wait, the less you will have to live off and enjoy in retirement, so if it is not a priority right now, make it one. You can still save for your next vacation but you will need reduce expenses somewhat so that you can allow a portion of your income to be saved.
Don’t Have Company Matching Contributions
Some companies offer if you contribute to 401(k) they will match up to a certain point, say 6% per example. That is free money, of which could be thousands of dollars put in your account just by you contributing the same, but just because your company does not offer, you still need to contribute the maximum you can, and even higher without the extra gift from your workplace. The next time you are in the market for a job, take 401(k) matching into consideration.
But I’ll have Social Security
If you are a Baby Boomer you will be lucky if Social Security will be there when you retire, let alone a Millennial. Well maybe it is not that far off from being extinct, but any notion that you will be able to live off of Social Security can be squashed right now. Even if it is there by the time you retire, it will be a fraction of what you make now, so if you are used to living high on the hog now, those days will for sure be over, when it will be the time you should be enjoying life even more.
Afraid There Will Be Another Crash
You could be a little more conservative with your retirement fund allocation, but you can’t let the stock market crash of roughly ten years ago sway you from saving for your future. Sure, most of you, and if you’re younger, your parents, may have finally recovered from that devastating crash, you cannot jeopardize your future for something that may or may not happen, that is out of our control.
I Don’t have the Extra Money
Now I totally understand that if you are barely getting by with your regular bills, there is not much leftover to contribute to savings, but this is where you will have to be creative. What is your spending money situation like? Do you have excessive shopping, go out to eat a lot, do the bar scene? Well every little you can avoid spending you can put towards saving, so try and make the best spending decisions you can.
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