Saving takes time…start early

In life there are so many things to ‘save up for’….. that being said, the best way to tackle this is to start saving as early as possible. And remember, every penny counts.  Sometimes you’ll think…. “The hurrier I go, the behinder I get”.  But don’t get discouraged.  Keep plugging away.

Put money in each of the needed savings accounts so each one will show you a bigger balance….. even a little bigger is better than not. It won’t get to what you want/need it to be overnight, but with consistent deposits, it will. Be diligent about saving.

Your choices along the way, and how you handle money by budgeting and saving will matter as you move through life.  Being disciplined, paying yourself first, and staying within a budget is key.

The accounts you have saved for ‘liquid emergencies’ and 9-12 month cash reserve may or may not have been used.  If used, they should have been replenished and should be there.  The cash reserve account, as retirement begins, can, if needed, be used to supplement your social security or pension income until you are 72, when your RMD kicks in. That way, the money you have in your retirement account(s) continue to grow.

At this time, 62 is the earliest age to begin collecting social security, and each year you put it off, the amount you’d get will go up about 8%… so the longer you can put it off, the better. That said, the Social Security System needs fixing…now…so unless and until this happens, you shouldn’t ‘count on’ receiving it.  Count on yourself…be disciplined and diligent about saving for your future.

You don’t want to get to only a few years away from retirement and realize that you don’t have enough money saved for how you thought your retirement years would be. Depending on what type of retirement account(s) you have, most can’t be touched until age 59 1/2.  Others need you to notify them when you are 72, to set up an RMD (required minimum distribution) withdrawal each year, and of course, there will taxes to pay on the amount. They will figure the annual amount. You can choose to receive it in a lump sum, or in equal monthly amounts. It’s up to you to set it up to begin. If you neglect to do this, it won’t start and there will be huge penalties and tax ramifications, meaning a good chunk of the money you saved throughout the years, is now wasted.

If you save every cent you can and do this right throughout your working years, you will be able to enjoy a retirement lifestyle you’ve always dreamed of.