Saving for your retirement is a given. But, how much money do you need to set aside to enjoy your golden years?
How do a million bucks sound?
That may not sound feasible, but it’s not as challenging as you think if you follow these eight strategies.
1. Start saving as soon as you can.
The younger you start saving, the less amount of money you’ll have to put aside each month. For example, if you start saving $405 per month at the age of 25, and are receiving an average annual return of 7 percent, you’ll make you a millionaire by age 65. If you wait until later in life to start your savings, you’ll have to devote more money each month to catch-up.
You can use Bloomberg’s handy 401(k) Savings Calculator to give you a better understanding of how much you’ll need to save to reach your retirement savings goals.
2. Live below your means.
Here’s one of the best pieces of financial advice I’ve ever come across. You can only save money two ways. Either make more money or spend less money. In most cases, it’s a whole lot easier to cut your spending and live a little more frugally.
Credits: John Rampton