Sponsored - Saving for retirement, especially for millennials, is not always a priority. Reducing credit card and student loan debt take precedence while future living expenses (30 plus years down the road) take a back seat.
The reality is that one in three Americans report they have no retirement savings, 56 percent of Americans have less than $10,000 saved for retirement and social security benefits aren’t a guarantee. These statistics are staggering, but no matter your age, it’s always a good time to save.
For anyone who has not started saving yet, follow these tips and start planning for your future now.
- Open an account. Whether it is an employer 401(k), a Roth IRA or a traditional IRA, just open one. Make automatic withdrawal payments to this account monthly and strive to save 10 percent of your gross income.
- Take advantage of the freebies. Find out if your company offers health savings accounts or flexible savings accounts. These accounts reduce your taxable income and help you save more. Also, take advantage of your company’s 401(k) match. As long as you contribute a certain amount of your pay, your company will match a percentage of it. That’s free money for your retirement.
- Learn about compound interest. When investing your money, you earn interest and the interest earns interest which is compound interest. This compound interest can really add up over the course of your working years, especially when you start saving in your 20s.
- Get out of debt. Work on paying off your high-interest debt first and then prioritize your other debts. Once you pay off the high-interest debt, put that payment toward another debt in addition to the amount you’re already paying.
- Earn more. Earn more money by continuing to increase your knowledge in your field. As you educate yourself through certifications and other specialties, the possibility of promotion increases which could increase your pay and your ability to save.
Make saving a habit. Have your employer take regular deductions from your paycheck. If your employer doesn’t have a 401(k) plan, treat saving like a bill that you have to pay each month. You won’t even realize the money is gone by putting it into a long-term savings account. It is never too late to start saving.
If you need assistance as you build your financial future, Centris is ready to help you take the first step. Our preferred financial planner, Mike Sieler of Curnes Financial Group, is available to help. Learn more at /www.centrisfcu.org/financial-planning or contact Mike directly at (402) 697-6726.
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