In order to have enough savings for retirement, people should start contributing to their retirement accounts as early as possible. Although it’s never too late to start saving for retirement, the amount you must contribute each month rises with each passing year. A 25-year-old must contribute $381 a month, but by 30 that amount has risen to $555. In order to contribute this much each month, discretionary spending can be limited and windfalls such as tax refunds can go toward retirement. Creating a personalized retirement plan can also ensure that you will have as much as you need when you retire.
Key Takeaways:
- The biggest mistake you can make when preparing for retirement is thinking that you have plenty of time to do so.
- The earlier you start saving for retirement, the more time your investments have to grow.
- If you put away $100 every month for 40 years, you would have approximately $240,000 saved toward retirement.
“Millions of Americans are guilty of this. Don’t be one of them.”
