Saving Money for Retirement: How Early is Too Early?

Spoiler alert: It’s never TOO early to start saving for retirement. 

But let’s get practical for a second. When you’re in your 20’s and 30’s, you are not only establishing yourself in your career, but you are also buying your first home, getting married, and starting a family. Those are a lot of expensive milestones that need to be covered by a modest, early career salary. Wouldn’t it make more sense to start saving when you’re older, when your salary is more robust and these expensive years are past? 

Think back to your days sitting in a math class. Remember learning about compound interest? While your salary might be lower in your 20’s and 30’s than it will be in your 40’s and 50’s, you have one advantage over someone who starts saving later in life: Time. 

Saving just an extra $100 a month when you’re in your 20’s, and increasing this monthly amount as your salary increases, will make a substantial impact on your retirement nest egg. Make your money work for you. Time is on your side!

There’s more to it than just taking money off the top of your monthly paycheck, of course. It’s important to be aware of how your employer-sponsored retirement plans work. Are you taking advantage of every matching opportunity? Are you maximizing the 403(b) or 457(b) plan offered by your employer? Is your portfolio balanced across a variety of investments? 

If your eyes glazed over during those last few sentences, you’re not alone. You’re smart and capable - but investments just might not be your “thing.” And even if you do enjoy digging into investment vehicles, it pays to have an experienced financial professional on your side. 

That’s where my agency comes in. I am here to help you plan for your retirement so you have a secure future. Book a virtual appointment with a member of my team to discuss how we can help you take charge of your financial future!