There has been a lot of talk in recent years – especially since the financial crisis of 2007 – about how working age people are not saving or investing enough to take care of themselves in their retirement. Whether retirement is a very long way off for you or is sneaking up faster than you would like, addressing your saving and investment habits and behaviors can make the whole thing a lot less stressful. Here is some advice to help you become a better saver and investor:
Getting Into the Habit of Saving
It can be frightening to think about the future, especially when you are in your twenties and thirties and retirement feels like a lifetime away. However, even if you don’t intend to save the money right up to your retirement, it is very good to get into the habit of making regular deposits into a savings account – you can always use them for things you want more immediately like a deposit on a house, a new car or a vacation, or in the mid term like sending your kids to college rather than putting the money away indefinitely to cover an old age you can’t even imagine yet! When you are looking at your budget, always attempt to factor in a fixed amount to put into savings or investments each month. It may feel boring, but once you have accrued some money you will soon start to feel proud of what you have managed to save, and the peace of mind that having this fund to fall back on should you lose your job or need money unexpectedly can give is well worth a few small sacrifices each month or a bit of coupon clipping!
Have Some Assets You Can Sell
Investment can be even better than saving, because it can offer you a better long term return if you do it wisely, and some forms of investment such as property can also give you something while you own them. What you can invest in will depend on your financial situation – if you have the money to invest in property this is almost always a good choice, but even with a small amount of capital you can invest in stocks and shares and own some assets you can later sell if you need them. It may seem daunting to get into investment, but if you talk to a professional like financial planners Los Angeles JSF Financial you can soon work out a good strategy that will suit your circumstances and offer as much stability as possible.
Take Advantage of Schemes That Your Employer Offers
Always put as much as you can afford into schemes that your company offers, like pensions and 401K plans. Your company’s contributions will up the value and make sure you have a good financial nest egg that could well assist you when your working life is close to an end!
Saving for the future can be a hard mindset to get into, especially when you are young, but getting into the habit of saving and learning to invest will stand you in good stead for whatever happens.