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Retire When You Want To

By Edited Dec 2, 2016 0 0

Plan Ahead Work Hard Now So You Can Reap the Benefits

With an ever growing percent of people working well past the classic retirement age of sixty-five and an increasing number of young people joining the work force with large amounts of student debt, retiring early may seem like some sort of pipe dream. It is not, retiring early is not only realistic but achievable for the masses. In order to retire early or at the very least, on time, one must do a few things. Start saving early, get rid of your debt ASAP, make plans and set goals.

The first and most important step for most young people in today's society is to eliminate debt. Do not take debt lightly and do not take your time paying it off. Not only is interest constantly accruing on the initial balance of each loan but it is simply draining money from your paycheck week by week. If you have debt and you have a job the first goal you should set for yourself is to eliminate your debt. Throw everything at that nasty, life sucking debt. Pick up a second job, sell things on amazon, do contract work, walk people's dogs, mow lawns, do anything you can to put more money to debt payments every month. You will breathe easier when that debt is gone and you will enter into financial freedom.

Once you have paid off your debts you will have choices to make, this leads up to step two. Save money early! Not only save but invest. First and foremost set up an Emergency fund with a few months worth of expenses and set that aside for Emergencies and Emergencies only. Once that is in place start to invest your money.

Why invest? Because the annual rate of return is seven percent and that is quite consistent. Now this is assuming you spread your money throughout the market so that your growth reflects the overall market growth. This is not an attempt to hit it big and find the next Apple or Starbucks. This is quite safe. The recommended way to invest is to invest slowly over time so if your work offers an IRA of any kind, set that up. Your money will be taken out pre tax and your employer will most likely match up to a certain percent of your paycheck. You should invest at least Five Percent of your paycheck and more is welcome. Max it out if you can. After that you may set up a Roth IRA and invest that as well through your bank or through a company like Betterment. If you can start putting one thousand dollars a month into investments each month, you could be a millionaire in approximately twenty-five years and well on your way to retiring with enough money to never need to work again.

What ties this whole plan together you ask? The structure of the whole system will depend on your goal setting and your ability to stick to these goals. You do not need to think about your retirement plan every day, but you should take time to think about it while your young. If you are a twenty-something with or without debt, read this article and take charge of your finances. Write out your plan for your retirement. Know where you are going and how you will get there. Once your plan is in place all you have to do is remember to stick to it. Controlling and planning your finances will lead to ultimate freedom from money and from work. Start moving towards freedom today.

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