If you have been saving a little for retirement now and then – good for you! You’re ahead of the game. But, have you actually projected how much you’ll have banked by the time you reach retirement? Statistics show that only a third of individuals surveyed have actually taken the time to calculate how much they will have saved by the time they retire, never mind calculating how much they will truly need. It’s great if you’re already setting something aside, but saving at your current rate might not be enough to reach your financial goals.
When setting financial goals, you should consider short-term goals, such as a new couch; midterm goals, such as debt reduction; and long-term goals, such as paying off your mortgage and saving for retirement. While reaching short-term and midterm goals will impact your life immediately, or in the near future, it’s important to keep long-term goals like retirement saving in sight. Retirement may seem far off, but you’ll likely regret short changing yourself in retirement more than having $20 less in your pocket today.
Brainstorm regularly to generate ideas for goals. Write down your goals so you can physically arrange them by importance. Prioritize your goals by what is most important to you. Hopefully, financial stability in retirement will be of one of the most important goals in your life. When you sit down to make out a savings plan, think about what is most important, regardless of whether you will see the results in two months or 10 years.