The Best Time to Save is Now

Why you need to save for retirement today?

Younger generation should plan strategically to begin accumulating wealth at an early life stage.

We can talk about retirement; particularly your finances once you set sail into your sunset years.

For today’s youth, thinking about saving for retirement seems unnecessary because they think we have more working years left to earn money.

They always say, ‘why not spend their hard-earned cash on things and experiences that you can enjoy while you’re still young and able?

While those persons, which could be us in one way or another, is right, we have also been told time and again by older folks to start investing for our future while we’re young.

And they might be right.

Millennials in the Asian region are at substantial risk of a cash crunch during their later years.

A survey revealed that very mixed expectations about the quality of their financial futures.

Despite optimism about their retirement, nine out of 10 said that they expect to be able to maintain or improve their standard of living in retirement, nearly one third or 30 percent expect to run out of money later on in life.

Millennials may have been led to feel a sense of optimism for an improved post-retirement living standard, which is potentially misplaced.

Today’s young generation expect challenges that will threaten their financial security later in life.

Four in 10 or 38 percent are expecting to take on the responsibility of financially supporting both their parents and children at the same time.

In addition, majority or 71 percent of millennials anticipate working past their retirement age.

It’s sobering to see how many investors, especially young people, recognize that there are risks to their retirement.

Longer lifespans and later retirement will place increasing demands on investment funds.

Younger generation should plan strategically to begin accumulating wealth at an early life stage.

A common rule of thumb is to accumulate around 25 times the amount you expect to spend in your first year of retirement.

To ease you up in your saving, you can sett aside P1,000 monthly for retirement, by doing this you can have P480,000 sure money once you retire after working for 40 years.

You can augment this by adding more to your retirement fund and investing in real estate and any other investment options.

Having fun spending all your money on things and travels? You should probably consider saving up for your financially comfortable future that is full of worthwhile adventures.

They owe it to themselves to consider every option available to them in order to plan more effectively for their future.

Young people today will need to start saving and investing sooner rather than later.

Otherwise they face a retirement of anxiety, not adventure.

Start today by setting aside a little money each paycheque until you have an emergency savings fund.

If you receive a bonus from work or an income tax refund, use that to get you started or to add to what you’ve already got set aside.

As life happens and you need to dip into your fund, build it back up.

It takes a bit of work, but it’s a habit worth getting in to.

One of the best saving strategies is to pay yourself first.

What this means is that you designate a certain amount of your paycheque as you pay that money to yourself before you pay your bills or anyone else.

If you pay yourself first, then money will get saved because paying yourself is now your first priority.

The nice thing about this method is if your budget is a little tight, it forces you to make adjustments elsewhere and your savings continue to grow.

This amount can be minimal or maybe 10% of your paycheque.

It can be any amount that you decide. The important part is that you pay yourself first rather than last.

Most people pay all of the bills first and then save anything that might be left over.

For most people, that method of saving doesn’t really work because nothing is left over to save.

At the end of the day, the best time to save is now.