Are You Ready for Retirement?

Assuming you're over the age of 18, one of the subjects to think about often ought to be your retirement. That's right-whether you're in your 20s, 30s or 40s-and especially if you're older, retirement is a subject to revisit often.

One of the biggest mistakes young people make is not pondering the whole idea of someday living on their money without working. Know this-the day will come when you are unable to or don't want to work anymore (unless you pass away first). Very few people continue to work and earn money right up until their deaths after they reach their mid-60s.

Frankly, the most energetic, healthy individuals still tire easier once they reach their 50s, 60s, and 70s. The earlier you start saving, the more money you'll have to live on when the time comes for you to stop working. The money you save now will build up through compound interest and your consistent saving. Regardless of the amount of money you make, save now.

Recognize You Must Take Responsibility for Your own Financial Life

Realize the power you have to create your own future. Whether you make $8 an hour or $80 an hour, save at least 10% of your net wages every single time you get paid. Fifteen percent is better, according to the experts. Make a decision. Then, religiously save for your future, just like paying a bill.

Establish the Habit of Saving Now

Hopefully, you've already developed a habit of saving money. But if you haven't, start now. Whenever you get your paycheck, bank $10-$15 for every $100 you net in a savings account (Kristof's article in AARP Magazine).

Better yet, put the money in a money market that earns the highest interest you can obtain. No excuses are acceptable, just do it. Later down the road, talk to a financial planner about how to invest some of your saved dollars. Someday 30 or 40 years from now, you'll be glad you did.

Did you know that those who consistently save are much more aware of their spending habits? After all, if you're saving back dollars for yourself, how you spend money becomes a subject demanding careful thought and restraint.

Get Excited About Watching Your Money Build

Although you might focus on buying yourself new personal items or eating dinner out several times a week, you'll find watching your savings total rise every single time you get paid is pretty fun, too. Observing how your money grows from week to week and month to month gives you something to look forward to and helps you to see the power you have. You may not think so now but once you experience these feelings of anticipation and joy, you'll save even more.

Of course, if you have unpaid credit card debts, pay all those off first with the money you save. Then proceed to beef up your savings.

Have a Positive Attitude: Avoid Negative Thinking and Talking Regarding Your Money

Some self-help experts (see Allysamarks' article at Self Help Online Blog Reviews website) believe how you think and feel about money will largely determine the type of financial life you have. At the very least, your attitudes about money trickle down and affect how you manage your finances.

For example, have you ever heard someone say (or maybe you've said it yourself), "I don't have any money left to save after I pay all my bills"? Believing this way prevents you from taking steps to save and is just an excuse to not take hold of and manage your finances. Instead, say, "I will save $10 (or $15) of every $100 I get." And then follow through. Thinking positive will help you grow your funds.

Summary

When you step up to take responsibility for your own financial future, establish the habit of saving as early in your life as possible, focus on watching your dollars build, and have a positive attitude regarding your money, you'll be on your way to financial and emotional peace. Be ready for retirement. Regardless of your age, the sooner you start planning and saving, the easier it will be.

Sources

Allysamarks, Can Some Daily Habits make you Rich, Self Help Online Blog Reviews website

Kristof, Kathy, M. Retirement's 3 Most Urgent Questions, AARP Magazine, November 2011

Personal experience