(MotivateDaily.com) – Do you have enough money saved up for retirement? What about for a sudden emergency? If you don’t, you’re not alone. Over 46% of U.S. residents are expecting to work long into their retirement because they don’t have enough savings to sustain themselves. So how do you start saving now? Here are some tips for saving no matter what phase of life you’re in.
The Roaring 20s
Not the era, your age! The roaring 20s are a time of exploration and finding out who you really are. And like the decade it refers to, it can also be a time of prosperity, so saving should be a priority.
Maybe you’re a recent college grad, and you’re pinching pennies until you find the ultimate career job. Just because you may be broke and still living at home with Mom and Dad, there’s no excuse not to save. Start small. According to Ally, you should have the equivalent of your yearly income saved by the time you’re 30. Opening up a high-yield savings account is a good way to have your savings grow over time.
Living Your Best Life in Your 30s
By the time you’re in your 30s, you may have settled down with a family and a good job. There’s a lot to plan for when it comes to your future, including savings and retirement. You’ll need to set aside roughly 15% of your pre-tax income for retirement, so be sure to work this into your budget. A 401(k) can help you with building your future. If your employer matches your contribution, you’re even further ahead.
40s and 50s and Inching Toward Retirement
When you’re well into your 40s and 50s, you should be thinking about how your future looks after you clock out that very last day of work. By now, you should have a decent nest egg in the bank to help with daily expenses moving into retirement. What’s the best way to save? Take advantage of tax breaks by investing an added $6,000 to $24,000 into your 401(k) each year. This reduces your taxable income now, putting more money back in your pocket so you can build up your emergency fund.
If you have income coming in from a pension or an investment, stick an extra grand a year into your Roth IRA. Even smaller amounts can help build up or replenish your savings. Your Roth IRA builds up, and you’re not taxed when you take money out after age 59 1/2.
You can save pennies at any age — but as you get older, your piggy bank needs to get a little bigger. Start small and build on what you already have. You may be surprised at how large your nest egg grows.
~Here’s to Your Success!
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