It seems like you’ll be punching a clock forever, right? Well, one day, you’ll likely stop spending 9 to 5 at a desk and will enjoy your golden years in retirement. But that’s assuming everything plays out nicely and you have enough money set aside to do so. Stressful, right?
Well, according to a 2016 Retirement Income Strategies and Expectations survey by Franklin Templeton Investments, 70% of millennials are stressed and anxious about saving for retirement. So if you’re one of the millennials who gets anxiety every time mom or dad brings up the importance of your retirement funds, take a deep breath.
We’ve got 50 easy-to-digest ways that can get you on the right track today so you’re ready to celebrate in style once your 65th birthday rolls around.
50 Tips For Millennials To Do Now To Afford Retirement
#1. Start Now
“It’s never too late, and it’s never too early, to start saving for retirement,” Ty J. Young, CEO of Ty J. Young, Inc., a nationwide wealth management firm, said. The longer you wait, the more you have to save every month. You can get away with just $100 a month and be in good shape.
#2. Don’t Fear Your Finances
“A healthy relationship with money is absolutely crucial,” Attila Morgan, Nuvision Credit Union’s manager of community engagement and public relations, said. If you shy away from planning for retirement, you’ll pay the consequences down the line.
#3. Think About How Much You’ll Need
“It’s crucial that you know how much money you will need in retirement,” Roger Cowen, a retirement planner and owner of Cowen Tax Advisory Group in Hartford, Connecticut, said. This way, you’ll have an easier time figuring out an amount to save or invest. Don’t forget about inflation.
#4. Pay Your Savings Account
There are bills that must be paid but you also need to pay yourself. This doesn’t mean buy something new. It means putting money aside for your future. As Warren Buffett said, “Don’t save what’s left after spending, spend what’s left after saving.” Set up a basic budget and make sure you put your savings on auto-pilot.
#5. Avoid The Couch Cushions
You won’t gain anything from hiding money under the mattress or in the couch cushion. Take that money to the bank. Sure, interest rates may not be high, but it’s still extra money you wouldn’t have had otherwise. I use CIT Bank, they offer one of the highest yields on online savings account in the country.
#6. Make Sure You Have A Rainy Day Fund
Experts generally recommend having at least 6 months worth of expenses socked away for emergencies. The amount you’ll need will change over time, so make sure it stays at the level you’d need.
#7. Only Withdraw Money In Emergencies
You’ll want to use your emergency fund for “unexpected events, rather than dipping into your retirement savings,” Chad Smith, wealth management strategist at HD Vest, a financial services firm in Irving, Texas, said. And just so we are clear, an unexpected event is a car accident, not a 50% sale at the mall.
#8. Set Up Automatic Transfers
“Having the money directly transferred will make [saving] easier,” Cowen said. When you make things automated, you never have to think about it. It just happens. How awesome is to save money and even invest money without thinking or working at it? My favorite auto-saving option is Digit and my favorite auto-investing option is Betterment.
#9. Avoid Duplicates
If you’re paying for multiple streaming services as well as cable, decide what you can cut. Same goes for multiple magazine subscriptions that you read online. Anywhere you’re doubling up, try to cut back. if you aren’t sure where you are doubling up, just use Trim. It’s free and they will tell you where you are wasting money.