Oftentimes, taking the first leap into retirement planning is the hardest of all to take. Don’t let fear of the unknown hold you back from making a move today. The Metroplex Wealth team has rounded up 4 easy-to-implement retirement planning tips to get you on track to building a nest egg today.
That’s right, our first step is as simple as it gets. Today, simply take action. Whether it’s setting aside a nominal amount into a retirement savings account or carving out a chunk of change for your retirement, take action today. The earlier you start, the more time you’ll allow for compound interest to work its magic and grow your wealth.
Match Your Employer Contribution
Many employment opportunities include a matching employer 401(k) plan contribution as a benefit. If you aren’t already matching your employer contribution, bump your contribution today to match it. While it may hurt your bottom line initially, not doing so is essentially flushing free money down the toilet.
Get on a Budget
If you feel that you don’t know where your hard earned money is going, it’s long past time to establish and follow a budget. A budget can be as simple as a list written on a piece of paper or an elaborate spreadsheet housed on the cloud. The point is, a thorough outline of funds going in and out of your account will likely uncover some opportunities you may not otherwise recognize. Making short-term sacrifices in your entertainment budget now can go a long way in growing your retirement account later.
Continually Increase Contributions
While it’s easy to get comfortable with your current contribution amount, it’s best to continue to increase your contribution amounts as your income increases. Make it a habit to increase your contribution with every pay raise. Before giving yourself the chance to come up with creative ways to spend your tax refund, deposit the money into your retirement fund. Remember, following our retirement planning tips is making an investment in your future.