My grandparents were extremely frugal, planning to travel after he retired. Grandpa died at 62 when she was 16. Mom (& Dad) saved, but insisted we experience some life now. But don't start spending on all the luxuries now. You can enjoy for less.
1. 401K -Take employer match funds on day 1. Free money is a great investment, and if tax deferred you won't notice how little less you would have spent. If Roth non-deferred still worth the sacrifice now.
Every time you get a raise, increase contributions by 1-2% until maxed out. Use low cost stock & bond funds/ETFs as your base investments.
2. You make 16-24% by paying off credit cards every month. Never carry a balance.
3. Save 6-12 months of expenses or $10,000, whichever is higher, for emergencies. May take you 3-5 years. Emergency funds will cover medical emergencies, auto accidents, or unemployment/job hunting. Things happen to everyone. Read "How much 8 different emergencies may cost you" below.
4. Have insurance policies - auto, homeowners/renters, medical, Long Term Care, and consider an umbrella liability policy.
5. Aggressively pay down student debt, and save towards a mortgage down payment. It is a balance. Savings give you options.
6. Delay Social Security till 70-1/2. You earn 8% more income per year for your senior years, and may live much longer than you expect. Think will blessed if healthy enough to keep working well into my 70s.
Finance is for long term & can be complicated, but these basics will get you started towards paying for your retirement.
how much 8 different emergencies may cost you
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