Free Money Finance Guide to Saving for Retirement
Here's another one of my posts giving my thoughts on an area of personal finance. Here are tips for how to save for retirement:
1. Set your retirement number so you'll know how much you need to save. Use this to figure out how much you need to save every year and every month to reach your goal.
2. Start saving by spending less than you earn (said another way, save a portion of all you make). This alone is THE key to getting rich and is the main way you'll generate excess funds to save for retirement.
To spend less than you earn, you may need to earn more or spend less.
3. Contribute to your 401k to get the full employer match.
4. If you have retirement money left over, contribute to a Roth IRA.
5. If you still have money to set aside for retirement after fully funding the Roth IRA, max out on your 401k.
6. Be sure to invest your savings regularly in good, solid investments. I like index funds.
7. Do this for a long time, letting the power of time and compounding work for you.
And for those of you wanting a bit more information, here are some of my recommended posts on saving for retirement:
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