"We need to understand ourselves before we can fully understand our finances."
What stops us from saving?
Saving money becomes difficult when we can't see the big picture, or look far enough ahead at the futuristic benefits of saving. Saving also becomes difficult when money is tight, or when there is little extra to put away. College can be a tricky time to start saving, because there are more pressing things on which to spend money, and life itself is costly enough to afford.
What we often don't realize is that saving early is critical. Statistics show that 50 percent of people will run out of money in retirement. And saving early can be the solution.
In fact, people who benefit the most from saving are those who start in their teens and twenties. Because of compound interest, those who start saving early earn more money from their savings, even ten years makes a huge difference. This article from Business Insider shows the monetary advantage of starting to save at 25 years old vs. 35 years old.
In order to boost your retirement and ensure that you do not become the 50 percent that runs out of money, simply start saving.
How to start saving, simply.
Automate your investing contributions, and increase your percentages with every pay raise. If you're just starting out, and money is tight, start by saving 3 percent of your pay. If you have more flexibility with your money, boost your contribution by 2 percent a year until you max out.
The goal is to save ten percent a year if you start before your mid thirties, and fifteen percent if you start after that.
Automating your payments is simple. Online banking allows you to schedule transfer payments into your investing fund. If you have questions on how to make contributions to your retirement or savings account, check with your credit union!
Remember...ten percent is the goal! Starting early has its benefits!