Build Savings
Buying things is fun. But splurging on too many things now could limit your ability to splurge later — or even to afford the necessities. If you shortchange your savings, you may have to live on a lot less or postpone your retirement.
Buying things is fun. But splurging on too many things now could limit your ability to splurge later — or even to afford the necessities. If you shortchange your savings, you may have to live on a lot less or postpone your retirement.
You don’t have to eliminate all discretionary spending, but you should think twice before buying things you don’t need. Before making a big financial commitment, weigh the pros and cons.
Making healthy lifestyle choices — eating well, exercising, taking care of yourself — can pay off throughout your life. And the potential benefits are not just physical. Your choices may promote good financial health, too, by keeping your medical costs in check now and in retirement.
The amount of savings you have in your retirement plan when you retire will depend in large part on your decisions about how much to contribute. Many experts today recommend annual contributions of between 10 percent and 15 percent of pretax pay.
How much you’re able to earn will influence how much you’re able to save. Ideally, the more you earn, the more you can save. Therefore, an opportunity to advance your career is also an opportunity to advance your chances of a financially secure retirement.
If you change employers at some point, you may be eligible to withdraw money from your plan account. As tempting as it may be to cash out, that would derail the progress you’re making toward your goals. Instead, consider choosing an option that lets you keep your savings growing tax deferred.
Article is adapted from content provided by DTS.
