When it comes to planning and saving for retirement, you must be consistent and save and invest every year. You also must be disciplined. Once you invest the money for retirement you cannot touch it. Because of the power of compounding investment returns, contributing to your retirement every year and allowing it to grow are the keys to building your nest egg.
It is easier to put money away when you are young than when you have a mortgage or a family to take care of. Many of those that are just starting out in the work force, however, face substantial headwinds: hefty student loan payments and high—and in some cases sky-high—housing costs.
Even with a tight budget, saving for the future must be a priority. Start saving for retirement through your employer as soon as possible and take advantage of corporate matches. Corporate matches are free money that help boost your savings every year. Make sure to put away enough to take advantage of the full corporate match. Remember, contributions to employee sponsored plans are not taxed, which is an added bonus. Because you are ultimately responsible for your retirement, this is a new year’s resolution that you must keep.
