Saving For Retirement. How Much To Save? | Cash The Checks

It has been drilled in to our heads ever since we started our first job: you need to save for your retirement. That of course begs the question of how much do we need to save and when do we start? While this article will not be able to tell you an exact number in regards to your personal situation it will attempt to spark some ideas in your brain that will give you a good idea on where to start.

This is going to sound almost too simplistic to be good advice but your first tip is to save as much as possible. There?s no such thing as saving too much for retirement. The reason is because the future is so unpredictable. If you don?t have a mortgage and are only able to rent, how much will your rent be in the future? What about the cost of filling up your tank of gas? For all you know food prices could skyrocket by the time you retire. We already know that health care costs can only go up. It is for that reason that you should put away as much as you can right now.

I understand that the economy is down the tubes, I understand there are always unexpected emergencies and I understand that bills need to be paid. But you need to add your retirement savings into your budget just like you add your bills to it. Better yet, get involved with a 401k plan at your job so they deduct the money from your paycheck before you even see it.

As far as how much to save for retirement, young people should be saving about 10 percent of their income. When you?re young it can be hard to save for retirement because it seems so far away, you have student loans to pay back, you?re buying your first car, saving to buy a house and beginning a family. But retirement savings should not be ignored.

The earlier you start saving the better. The reason is that your money will earn interest. If you add $3,000 to your retirement account at a young age it will turn into $50,000 by the time you retire. Now imagine if you added that amount every single year? You?ll end up at $750,000.

As you get older your expenses should decrease. You no longer feel the need to buy a flashy car, your kids have moved out and hopefully you would have already paid your mortgage off. This means you can pump your retirement account with a higher percentage of your income, say 25%. But if you never bothered to save for retirement in your younger years you?ll need to step it up even more and set aside as much as you can.

Saving for retirement is crucial because your options of being able to come up with money in a time of need are severely limited. If you?re in need of fast cash in retirement, your only hope may be to re-mortgage your home or refinance. But either of these two options can take a long time. When you have a paycheck coming in every two weeks this opens the possibility of getting?quick online loans. These types of loans offer you?cash before payday, like a cash advance on your future pay checks. While these fast cash options aren?t the best types of loans to get, sometimes it?s the only hope for those in a dire financial situation.

Source: http://www.cashthechecks.com/other/saving-for-retirement-how-much-to-save.html

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