Common Myths About Retirement
The amount you need to save for retirement is likely bigger than any other financial goal you have, but because it’s not an immediate need like housing or a car, it’s also very easy to put off. There are a number of excuses people make as to why they can’t save right now. Understanding these common myths will help you put things into perspective.
You Can’t Afford to Save
Many believe they do not have enough money to save for their future once the bills are paid. However, everyone can find at least a few dollars in their budget to get started. Even if you just save a couple of hundred dollars each month, it’s still a start. One way of freeing up extra dollars is to refinance your student loan debt. You can refinance student loan amounts of even a few thousand dollars to lower your monthly expenses. Then, set up a retirement plan with your employer if they offer one that you have not enrolled in yet.
You Won’t Need to Save Once You Get Married
There are plenty of tips for financial success to account for and factors that determine whether it becomes easier to manage your money once you get married. Both spouses may or may not work, and the amount might or might not be enough to support both of you. Honesty and communication also play a role. While your financial considerations might change when you get married, they will not completely disappear, so it’s important to set reasonable expectations for the future and start saving.
COPYRIGHT_WI: Published on https://washingtonindependent.com/common-myths-about-retirement/ by Emmanuella Shea on 2022-09-12T06:24:23.772Z
You Should Enjoy Your Money While You’re Young
You don’t have to choose between saving for retirement and having fun now. You can still enjoy life if you have a reasonable budget. One option is the 50/20/30 rule, which has you spending half your income on essentials, like housing and food, 20 percent toward financial goals like retirement, and 30 percent toward non-essentials, such as entertainment or vacations.
You’ll Have a Source of Income in the Future
Whether it’s a plan to keep working or a potential inheritance, you can’t count on anything happening in the future. If you are certain you will inherit your parents’ money, it could be spent on medical bills, or they may live a lot longer than you had expected them to. There might be taxes or other debt to contend with. You can’t count on receiving a certain amount of money from relatives once you are ready to retire. Many people also think they will keep working full-time during retirement. But many things might come up before then. You could have health issues that prevent you from working, even if you are healthy right now. Older people often find it harder to get a job than younger people because many companies want younger workers. You can hope for these best-case scenarios, but you can't plan on them, so it’s a good idea to put aside some money for anything that might happen to you.