Financial IQRetirement August 21 2018

How To Start Planning for Retirement in Your 20's

Planning your retirement is probably the last thing on your mind as a young adult. Your financial priorities may include simply paying off student loans, making rent, and buying groceries, not contributing your income to retirement investments. However, investing in your retirement early gives you long-term benefits. Some benefits to contributing to your retirement in your 20s include:

  • Increasing compound interest
  • Reducing your taxable income

Below are some tips on planning for retirement now.

Take Advantage of Your Employer’s Retirement Plan

If your employer offers a plan, make sure to enroll! These plans may include a 401k or 403b. Select the amount you prefer taken from each paycheck to be contributed to your plan. If your company agrees to match your contributions, these plans can be especially beneficial. After all, this is an effortless way to plan financially.

Budget Efficiently

Break down your expenses into categories and prioritize your retirement contribution. Tracking your spending habits by writing down your purchases, typing them into a document, or taking advantage of a budgeting app can help you reduce unnecessary spending.

Reduce or Eliminate Debt

Setting up a payment plan for student loans and credit card debt is a vital step in planning for your future. However, do not wait to begin those retirement contributions. Create a financial plan that allows you to simultaneously make monthly payments toward reducing your debt and to your retirement savings.

  • Start by paying off loans that carry the highest interest rate.
  • Set up automatic payments or a reminder to pay each month.

Take these tips into consideration and start creating a plan that works best for you. Starting a retirement plan, budgeting efficiently, and eliminating debt will help you kick-start saving for your future. The most important step to take is beginning to contribute to your plan now, even if you can only put a small amount of your money aside for retirement.

Need some ideas on how to start budgeting?

TRY OUR 30-DAY FINANCIAL CLEANSE

Search Results for query

September 05 2019

What to Expect If Your Mortgage is Sold

Closing on a home only to find out your mortgage has been sold to another lender can be alarming yet is very routine in the mortgage industry. While it does not affect the terms of the loan, it is still best to prepare yourself for this common practice.

Read More

August 22 2019

5 Ways to Protect your Home from Invasion

In the US, according to the Department of Justice, almost 4 million household burglaries occur each year. While these are frightening statistics to any homeowner, there are steps you can take to deter burglars from targeting your home.

Read More

August 19 2019

Don’t Let Credit Bumps Hold You Back

While your credit is an important factor when considering homeownership, a common misconception is that you need perfect credit to buy a home.

Read More

August 09 2019

How Credit Impacts Home Pricing

Your credit will influence your homebuying experience, from setting your sights on a home to securing a loan and everything in between. But how exactly does credit affect home pricing?

 

Read More

July 31 2019

Your Reverse Mortgage Questions, Answered

If you are 62 years of age or older, could use a cash infusion and have a large amount of equity in your home, a Reverse Mortgage may be just the financial tool you have been looking for. Essentially, your mortgage now pays you (instead of vice versa) and you...

Read More

July 24 2019

Benefits of Downsizing: Money

The average size of homes is decreasing as the number of homeowners deciding to downsize increases. A smaller home could mean big financial benefits.

Read More

July 19 2019

Benefit of Downsizing: Less Maintenance

If you're thinking of downsizing your home, less maintenance could bring you big benefits.

Read More

July 11 2019

Family, Friends, & Fulfilling the Dream of Homeownership

The prospect of coming up with a down payment for a home can feel downright scary, but luckily there are plenty of options out there! 

Read More

June 25 2019

The Modern Digital Mortgage Application

Technology has changed the way we live our lives. The way we connect, stay in touch, travel, and shop. And now it’s changing the home financing, too! Get pre-qualified for a home loan faster and easier than ever before – from any device, anywhere...

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?