Thinking about your possible retirement plan for as early as now is not unheard of. When you’re living your everyday life based on one routine, you can’t help letting your mind wander to a life of everyday vacation. Imagine waking up to a room with a view, bathing in a pool under the heat of the sun right after breakfast, and finally reading the books that have gathered dust in the attic. No one can say no to the life after retirement.
Finding the perfect place where you can spend your second round of teenage years is a matter of preference. If you’re an outdoor person who finds peace by having a view of the mountains, you can get one of the townhomes for sale in Eagle Mountain, Utah’s fastest-growing community. It can be the home where you plant your roots and where you spend your retirement years. If you’re the type who can’t stay in one place, start saving for the annual cruise off to different parts of the world. It will definitely provide you with the slow life you’ll crave for while exploring different cities and countries in luxury.
The youngest of the millennials who are in their 20s want to retire early. However, according to the 2019 Employee Benefit Research Institute (EBRI)Retirement Confidence Survey, only 23% of workers are very confident in their capability to retire. The destination is bright. Getting there, however, can be a little gray as it could be filled with extra hours at work and grave financial decisions. Don’t be discouraged. Starting young is the way to go. Here is a list of reasons your 20s is the best time to start planning your retirement:
You can take advantage of your youth
When you’re young, your mind is on other things and not on financial plans for retirement. This is understandable, especially if you feel like you are not earning enough to sustain your current daily living, more so your future lifestyle.
Starting is the most difficult part. But your youth is significant in building your wealth for retirement by maximizing the power of compound interest. With compounding, your small savings can generate additional earnings over time. If you still live with your parents and have no family to support, take advantage of your situation and start making smart financial decisions. Put a percentage of your income into your retirement plans.
You can start forming a healthy spending habit
It’s clichÃ© advice, but it works: Spend less than the amount you earn. Most likely, your current spending habits will be the same decades from now. Take note that 15% of your total income should be put into savings or investments. Not only will you reap the benefits in the future, but it will teach you to spend wisely. Also, you can download apps that will help you keep track of your spending and income.
You can avoid consumer debt as early as now
Learn the difference between good debt and consumer debt. Good debt can be found in buying a home and starting a business because you can use the collateral as leverage. Consumer debt, on the other hand, includes credit card loans and car loans. Staying away from consumer debt as early as now will stop you from being affected by high interest rates in the future. Your money will be placed where it needs to be.
It will never be too early to start planning your retirement. Being prepared as early as now can help you take advantage of your retirement plan earlier than normal. This means that you can say goodbye to your corporate job before you’re 60. Sounds like a plan.