You’ve heard it – “Starting early is the best thing you can do.” While starting to save for retirement early is important, those in their 30s and 40s who haven’t paid much attention to retirement can still set themselves up for a nice life post-retirement. However, you don’t want to wait too long because time is key. You need time for your money to grow in a retirement account.

For the people just beginning their careers, even $20-$25 a month in your 20s can pay dividends later. If you feel you can’t set aside more than that right now, don’t worry. It’s perfectly fine to set money aside for immediate needs first and then focus on retirement later. However, the longer you wait, the less time you have for your money to work for you.

Paying Off Debt
Everyone’s primary goal should be to reach retirement debt-free. This includes credit cards, student loans, car payments, mortgage loans, etc. You never want to be in your non-earning years owing money.

Creating a Budget
Everyone should track their current earnings and spending. Your budget should reflect all your current income and expenses. It’s also a good idea to put retirement savings in your budget, just like your necessities (food, home, etc.), so you ensure you’re adequately saving.

Emergency Account
The first thing most people do when facing financial hardship is tap into retirement accounts. A separate emergency account with about six months of salary saved allows you to cover any unexpected costs without dipping into your retirement.

Automatic Transfers
Automatic transfers allow you to easily move money from your checking account to your retirement account. You can set it up on the same day every month – the day you get paid for example. Eventually, you’ll get used to not ‘having’ that money in your everyday spending.

If you need help setting up retirement accounts or getting answers to the tough questions, give Lineage Bank a call today at (629) 248-9085. No matter your age, we’ll help put you on the right track towards a retirement you will enjoy.