Have you ever thought about your retirement? Of course, time will come that you have to quit your job and spend the rest of your years enjoying the prime of your life. But here's the catch: retirement is costly. You have to save about 70 percent of your income prior to your retirement years to cover your needs when you retire. Unfortunately, only a few people realize that. For instance, only 43 percent of Americans have planned the amount they will need for retirement. How about you? Now is the time to know how to save more money long term. The earlier you start, the more time your money has to grow. That's good news for your retirement fund. Listed here are some helpful tips to start building your retirement savings fund.
1. Make a realistic projection of how much you will need for your retirement.
That way, you will determine the right amount to save every month.
2. Save a portion of your income right away.
Before you even think of spending your salary, you must set aside a certain amount for your savings. To make that easier for you, set up an account in your bank that allows you to automatically deduct a fixed amount from your other account every payday. Ideally, 10 percent of your monthly income goes to your long-term savings.
3. Invest in bonds, stocks, or mutual funds.
Your short-term savings go to your bank account, while your long-term savings go to higher interest-yielding vehicles such as stocks, bonds, and mutual funds. That's how to save more money long term. Long-term savings options have higher risks, but they have the potential to yield bigger interests than bank savings accounts.
4. Look for savings options with high interest rate or rate of return.
Don't underestimate the difference between 5 percent and 10 percent interest rates. If you take into account the principle of compounding interest, the minimal 5-percent difference can be bigger than it seems! So when you look for investment options, study carefully the potential earnings they can yield. Examine the interest rates so that you know the amount to expect for your retirement.
5. Consider putting your money to 401 (k) and IRAs (individual retirement accounts).
A 401 (k) or IRA gives you privileges such as big tax breaks on your savings.
6. Never touch your savings no matter what.
The problem with most people is that they are tempted to spend their savings before they could earn a decent interest. If you access your money before your fund's maturity date, you blow your chances of getting a good amount of money for your retirement. What's more, you will be fined with penalty charges for early withdrawal of your funds.
You see, it's never too early or too late to start saving for your future. As long as you know how to save more money long term and start saving now, you can rest assured that your financial future will be stable and secure when you reach your retirement age.
You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli's FREE money saving secrets set on auto pilot at:
1. Make a realistic projection of how much you will need for your retirement.That way, you will determine the right amount to save every month.
2. Save a portion of your income right away.
Before you even think of spending your salary, you must set aside a certain amount for your savings. To make that easier for you, set up an account in your bank that allows you to automatically deduct a fixed amount from your other account every payday. Ideally, 10 percent of your monthly income goes to your long-term savings.
3. Invest in bonds, stocks, or mutual funds.
Your short-term savings go to your bank account, while your long-term savings go to higher interest-yielding vehicles such as stocks, bonds, and mutual funds. That's how to save more money long term. Long-term savings options have higher risks, but they have the potential to yield bigger interests than bank savings accounts.
4. Look for savings options with high interest rate or rate of return.
Don't underestimate the difference between 5 percent and 10 percent interest rates. If you take into account the principle of compounding interest, the minimal 5-percent difference can be bigger than it seems! So when you look for investment options, study carefully the potential earnings they can yield. Examine the interest rates so that you know the amount to expect for your retirement.
5. Consider putting your money to 401 (k) and IRAs (individual retirement accounts).
A 401 (k) or IRA gives you privileges such as big tax breaks on your savings.
6. Never touch your savings no matter what.
The problem with most people is that they are tempted to spend their savings before they could earn a decent interest. If you access your money before your fund's maturity date, you blow your chances of getting a good amount of money for your retirement. What's more, you will be fined with penalty charges for early withdrawal of your funds.
You see, it's never too early or too late to start saving for your future. As long as you know how to save more money long term and start saving now, you can rest assured that your financial future will be stable and secure when you reach your retirement age.
You can use all these strategies to save money, reduce debt and improve your life but it will not last unless you have a system automatically set up to continually work without your input. Get Dan Cavalli's FREE money saving secrets set on auto pilot at:
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