Believe it or not, you do not have to be wealthy in order to invest your money and save for retirement. Instead, putting away approximately 15% of your income, and adjusting your lifestyle around what’s left over, can allow you to build up a comfortable retirement savings.
The truth of the matter is that you probably do have enough money to invest; you just spend it all on things you cannot afford. If you struggle to put away 15% of your income, then you might be living beyond your means. Think about everything you spend your money on, and decide if each one of those things is a need or a want. Purchases as small as what brand of shampoo you use can add up over an entire year. For example, do you purchase coffee every morning? That $4 per day x 5 business days per week x 52 weeks per year = $1,040 you could have invested and maybe gained some money on!
Brewing coffee at home on your own sounds doable now, right?
Now, don’t get too down on yourself if you’ve realized you could be spending less on wants. Simply start making adjustments and adding more to your savings account until you can comfortably start putting away 15% of every pay check. For some this may mean trading down their vehicles, while for others this may just mean eating out less each month.
Once you have saved up enough in your savings account to cover living expenses for three months, you can start investing that 15% into retirement accounts like a Roth IRA or your employer’s 401(k) plan.
If you’re wondering what the next step is in your financial future, a financial advisor can make recommendations specific to you and your goals.
Call 715-839-1006 & ask for Dale, or send me an email by clicking here for your free consultation!