One of the tendencies we have as humans is to put things off. We think that we will have more time later to accomplish tasks. In the case of saving for retirement, you might think that you don’t have enough money to get started.
However, this thinking can cause problems later on down the road.
If you want to improve your finances for your future, now is a good time to start saving for retirement. Here are 4 reasons to start saving now:
1. The Longer You Save, the More You’ll Have
Thanks to the power of compound interest, the longer you save, the more money you end up with.
Just starting five years sooner can mean a difference of tens of thousands of dollars in how much you end up during retirement. Starting early gives you an advantage, and when you’re talking about a secure retirement, you need all the advantages you can get.
2. You Don’t Need A Lot to Start
There is no reason to think that you need a lot of money in order start saving for retirement. One of the excuses I hear a lot is that it takes too much money to get started.
The reality is that it doesn’t need to take a lot of money to get started with retirement investing. Find out from your employer what the minimum is to contribute from your paycheck. You can also open an IRA with as little as a couple hundred dollars. Some brokers, like Betterment, will allow you to contribute to an IRA with as little as $100 per month.
Money is not an excuse when you want to start saving for retirement.
3. It’s a Good Habit to Have
Even if all you do is contribute a few dollars a week to your retirement account to start, the reality is the habit is important as well.
Get used to the idea of setting aside money regularly for retirement, and you will be more likely to stick with it going forward.
Getting into the habit of saving is almost as important as the saving itself. You do need to boost your retirement contributions as you can over time, but just getting started saving is a good habit to be in. If you are in the habit, it is natural to set money aside first, and take care of the other things later.
4. You Don’t Want to Wind Up Short
The last thing you want in retirement is to run out of money.
If you want to outlive your money, it makes sense to invest for retirement as early as you can, and keep contributing to your account for as long as you can. If you aren’t careful, you could end up short – without enough to enjoy your retirement long-term. Start investing for retirement right now, and you will be more likely to have what you need for a comfortable and successful retirement.
Don’t put off your retirement investment plan. Start now on your retirement saving to increase your chances of success in the future.