Over the last few years, almost all research conducted on retirement noted that individuals are unable to demonstrate financial readiness for their retirement years. The main reason is the lack of financial literacy. A lot of people believe that saving for retirement isn’t for everyone because it is too expensive. But nothing could be further from the truth.
If you start now, you can reach the age of retirement and be able to afford it. Here are three ways to start:
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Start as soon as you can
The earlier you start, the earlier you can afford retirement. So, when’s the best time to start? The moment you received your first paycheck, you should start saving for your future. If you haven’t already, then start now.
Be prepared for emergencies
According to experts, your emergency fund should be at least six months of your monthly income. Try to build up your savings so you can have something when rainy days come. A health insurance should be one of your top priorities.
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Invest for retirement
Your immediate and short-term needs are easy to focus on. However, it’s not so easy for young adults to plan for the long term. They’re too busy living in the present to care. After all, retirement is a long way off. Only 19 percent of adults age 25 and under contributes to a traditional or Roth IRA. Remember, the earlier you start, the easier it is to save for retirement.
Hi, my name’s Steve Sorensen. I’m a certified public accountant. I consult for business finance and investment, banking, and also on issues involving employee embezzlement. Visit my blog to know more.