Personal Development

Saving for Retirement at 30

Are you in your thirties? 
If you are, retirement may be something that you occasionally think
  If not, now is the time to
  While there are a number of
benefits to saving for your retirement years when you are in your twenties, it
is imperative that you start in your thirties.
If not, you may find yourself with little or no money to retire with.

One of the easiest ways to set aside money for your
retirement years is by saving money. Take any bit of money that you are able to
save, by eliminating unnecessary purchases, and put it away.  To save the most money, examine your spending
habits.  Buying an expensive pair of
jeans is a nice pick-me-up when you were twenty, but now is the time to start
worrying about your future.  Remember,
apply any money saved to your retirement future.

As for what you should do with your saved money, you do have
a number of different options.  One of
the easiest approaches to take is to open a savings account.  Often times, all you need is $50 to do so and
your account should be fee-free, as long as you maintain the minimum monthly
balance.  As easy as it is to open a
savings account, only do so if you are good with money.  You will want deposit money into your savings
account and forget all about it.  If you
have a passbook, hide it.  Ignoring your
savings account, aside from putting money into it, is the best way to leave it
untouched.  Unfortunately, with a savings
account, it is much easier to get a hold of your money and you can do so
without any immediate consequences.

As nice as savings account is, there are many other
profitable and convenient approaches for you to take.  These include a 401(k) plan.  If you are employed and full-time, you should
be able to contribute to your 401(k) plan. 
Have you already been doing so? 
If not, it is recommended that you start.  Those in their twenties are encouraged to
deposit at least 5% of their income into a 401(k).  The same percentage is recommended for those
in their thirties, as long as contributions were previously made.  If this is the first year that you will
continue to your 401(k), 7% to 10% is recommended.  401(k)s are nice because they offer tax
savings and many employers will match contributions.

As previously stated, now is the time for you to start
saving money.  Eliminating unnecessary
purchases and carefully tracking your spending is a great to reduce your living
expenses and save additional money for retirement.  Before you put all of that money into a
savings account, 401(k), or an Individual Retirement Account (IRA), examine
your debt.  Do you have any?  Retirement and debt do not mix, so take steps
to rid yourself of debt and start doing so now. 
The best step to take is to reduce your expenses, which was outlined
below, and split the money saved between a retirement savings account and your
unpaid debt.

Now is also about the time that you should start thinking
about what you want your retirement to be like. 
Many people think this is a step that is too early for someone in their
thirties to take, but there is no harm in planning ahead.  Where do you see yourself when you
retire?  What kind of home would you like
to live in?  Do you intend to
travel?  What activities do you want to
enjoy?  These questions can help you
determine how much money you need to retire. 
Of course, you can still continue to save money for retirement even if
you don’t know the answers to these questions, but a goal can help make sure
you are able to retire comfortably and with ease.

The above mentioned steps are just a few of the many that
you, a person around the age of thirty, can take to prepare for
retirement.  They are, however, the
easiest steps to take.

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