Tomorrow never comes so they say but life changes. Today may be bright and sunny and you are young enough to go out for some healthy exercise. Today in forty years time may be just as sunny but you are now retired, not in the best of health and even a gentle stroll may be difficult. It’s worth thinking about because time goes ever so quickly once you have grown. You may have just finished college with a good career ahead of you. You have great expectations of a full and satisfying life. Without making major sacrifices it is worth thinking a long way ahead and making financial provision for when you may not have that good paycheck every month.
Debt free then Save
You may have some debts left over from your college days and they need to be cleared. That can involve your saving something from every paycheck until the debt is cleared. It is worth continuing to save that monthly figure even once the debt is paid. You may need those savings somewhere down the line. It may be for a deposit for real estate, health bills or a car. It may be you are looking further ahead and thinking about a retirement fund. it is worth developing the habit of saving each month whatever goal you have in mind.
Resist and Act
You must resist the little voice in your head saying you will begin to save when you are earning a little more. It is far too easy to become used to spending all your paycheck each month however big it is. Think about saving a percentage of your paycheck each month and do that even as you begin to earn more; a percentage is the key to improving your saving capacity as the years go by. You should think 10% and ultimately aim for 15%, especially if part of the reason you are saving is with retirement in mind.
Certainly your circumstances may change; mortgage, family, education and health bills. You will be in a better position to handle your financial commitments if you have started saving as soon as you are earning. It should be automatic.
Set a Budget
It involves your setting yourself a budget and sticking to it. If you need the discipline of transferring the monthly savings figure out of your account as soon as your paycheck comes in then do it. It does not mean you cannot enjoy yourself but do you really need to eat out regularly? Is there any reason why you cannot take your lunch to work with you? These are simple things that really do not impact on your lifestyle at all.
It is worth checking periodically on whether you are getting value on your insurance policies, energy bills and other household costs. If you shop around you can make savings even though you do not necessarily have to put those savings away with the money you are accumulating. Give yourself a treat because life is for living.
As you build up a good figure it is worth looking for risk free investment opportunities to help your money grow even quicker. If you want professional advice seek it out and stress you are looking for growth with security.
There is always a better reason not to do something than to do it. You should resist that even though it is generally the easier option. You should learn money management at an early age and follow the principles throughout your life. When ‘tomorrow’ is retirement you want to be able to enjoy life just as much as you did when you were young and healthy.