We're in the Money: Setting Up for Retirement

Jun 20, 2022 at 03:55 pm by RMGadmin

with Lineage Bank
You have heard it: “Saving early is the best thing you can do.” While starting to save for retirement prematurely is essential, those in their 30s and 40s who have not paid much attention to retirement, can still set themselves up for a pleasant life post-retirement. However, you don’t want to wait too long, because time is vital, and you need time for your money to grow in a retirement account. 
Even $20-$25 a month in your 20s can pay dividends later for those just beginning their careers. So, if you feel you can not set aside more than that right now, don’t worry. It is perfectly fine to set money aside for immediate needs first and focus on retirement later. However, the longer you wait, the less time you have for your money to work for you.

Paying Off Debt  

Everyone’s primary goal should be to reach retirement debt-free. This includes credit cards, student loans, car payments, mortgage loans, etc. You never want to be in your non-earning years owing money.  

Creating a Budget 

Everyone should track their current earnings and spending. Therefore, your budget should reflect all your current income and expenses. It is also a good idea to put retirement savings in your budget, just like your necessities (food, home, etc.), so you ensure you are adequately saving. 

Emergency Account 

The first thing most people do when facing financial hardship is tap into retirement accounts. A separate emergency account with about six months of salary savings allows you to cover unexpected costs without dipping into your retirement.  

Automatic Transfers  

Automatic transfers allow you to swiftly move money from your checking account to your retirement account. For example, you can set it up on the same day every month – the day you get paid. Eventually, you will get used to not ‘having’ that money in your everyday spending.  
If you need help setting up retirement accounts or need answers to the tough questions, call Lineage Bank today at 629.248.9085. We will help you get on the right track towards a retirement you will enjoy, no matter your age.