My dad always told me that there was no sense in contributing to retirement if I can barely pay the bills now. I just learned, though, that he's getting ready to retire and has barely enough for a year saved. So now I'm questioning that logic… When and how much do I save?
You need to start saving as soon as you can because compound interest and time are two major factors involved in growing your retirement savings. Start a budget to give you an idea of the money you will be able to set aside in your retirement account. Your budget should cover several categories including needs, debt repayment, spending, and savings. Looking back at your past bank/credit card statements can give you an idea of your spending in those categories. Do not feel discouraged if you start off saving a little, you can raise your contribution yearly or with raises you receive from your employer.
You need to start saving as soon as you can because compound interest and time are two major factors involved in growing your retirement savings. Start a budget to give you an idea of the money you will be able to set aside in your retirement account. Your budget should cover several categories including needs, debt repayment, spending, and savings. Looking back at your past bank/credit card statements can give you an idea of your spending in those categories. Do not feel discouraged if you start off saving a little, you can raise your contribution yearly or with raises you receive from your employer.
Great answer! Couldn't have said it better myself. Another thing to consider is where to save for retirement. There are several tax-advantaged accounts that can help people reach their retirement savings goals.
I agree, start saving early
Thank you.
Ya the earlier the better
I should have started sooner saving but have not starting to save now
Always save
I need to save what are best ways to do it?
I need to save what are best ways to do it?
It depends. Is this savings you need to be able to access quickly? (an emergency fund?) Or is this long-term savings (won't need it for 5+ years?)
Start as early as you can and as much as you can. Every little bit counts!
Save as long you can
as much as you can afford, I tell my friends $5 at least
My retirement will be a tent. Fine by me. Lol.
My job offers a 401K. I started with 10%. I figured I'm struggling anyway. It's out of sight out of mind money. As I become more financially secure I will bump it up.
It is best to save for retirement as soon as possible. It is great if you get a job that pays you a pension when you retire.
Start now
Your dad's advice is slightly misguided in terms of finance. The earlier the better because of the "magic" of compound interest. Compound interest is basically earning interest on you initial amount + previous interest payments.
However needs should not be ignored. The issue of bills before savings come through psychology as one's mind will find ways to create more bills to spend the "excess".
Since you are just starting to question advice (I assume you've heard most your life), might I suggest you think of saving for retirement as a bill you set for yourself? The amount can be small at first, and then increase later.
Gotta strike a fine balance …
Start early
Any little helps just be consistent and generous when possible.
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Early better
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