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SAVING FOR RETIREMENT AT 30

Are you in your thirties? If you are, retirement may be something that you occasionally think about. If not, now is the time to start. While there are a number of benefits to saving for your retirement years when you are in your twenties, it is imperative that you start in your thirties. If not, you may find yourself with little or no money to retire with.

One of the easiest ways to set aside money for your retirement years is by saving money. Take any bit of money that you are able to save, by eliminating unnecessary purchases, and put it away. To save the most money, examine your spending habits. Buying an expensive pair of jeans is a nice pick-me-up when you were twenty, but now is the time to start worrying about your future. Remember, apply any money saved to your retirement future.

As for what you should do with your saved money, you do have a number of different options. One of the easiest approaches to take is to open a savings account. Oftentimes, all you need is $50 to do so and your account should be fee-free, as long as you maintain the minimum monthly balance. As easy as it is to open a savings account, only do so if you are good with money. You will want to deposit money into your savings account and forget all about it. If you have a passbook, hide it. Ignoring your savings account, aside from putting money into it, is the best way to leave it untouched. Unfortunately, with a savings account, it is much easier to get a hold of your money and you can do so without any immediate consequences.

As nice as a savings account is, there are many other profitable and convenient approaches for you to take. These include a 401(k) plan. If you are employed and full-time, you should be able to contribute to your 401(k) plan. Have you already been doing so? If not, it is recommended that you start. Those in their twenties are encouraged to deposit at least 5% of their income into a 401(k). The same percentage is recommended for those in their thirties, as long as contributions were previously made. If this is the first year that you will continue to your 401(k), 7% to 10% is recommended. 401(k)s are nice because they offer tax savings and many employers will match contributions.