It is never too early to start thinking about retirement. While it may seem like a long way off, when the time finally comes, you will be happy if you saved up enough money. It can be hard to know just how to start preparing for retirement, and how much you are going to need. There is a lot of advice out there, and it can become a little bit overwhelming. In an attempt to help, we have compiled the first three steps you should take in order to start preparing for retirement. Following these won’t guarantee you’ll have enough money to live on when you retire, but they are a good start in the right direction.
Step 1: Make a Plan. This is the most important thing to do. If you don’t know what you are doing, you won’t be able to save effectively. Take some time to sit down and think about what it is you need to do. Find out what all of your options are and weigh them against one another. Once you have a plan, make sure you stick to it. The most effective retirement plans are the ones that you stick to for a long period of time.
Step 2: Start Early. As we said, it is never too early to start thinking about retirement. Studies have shown that the sooner you start, the more prepared you will be when the time comes. Even if you are fresh out of school and working at your first job, start saving for retirement. Even if it is just a little bit at a time, it will add up and you will be very thankful that you started so early when you are older.
Step 3: Be Disciplined. Saving for any retirement is more of a marathon than a sprint. Putting just a little bit away each week will go a long way. Each bit you save up will gather interest and it will accumulate over time. However if you are lackadaisical about your saving, it will not go well. This has to be a firm commitment by you, and your partner if you have one. Don’t get into the mindset that just because it is a long way in the future you can afford to slack off now. Come up with a plan, implement it, and then stick to it as best as you can.