If you’re getting ahead on planning retirement by starting at a young age, then good news – you’ve made a smart decision!
The earlier that you begin planning how you are going to fund your retirement income, the better off you’ll be in the future. And you won’t regret your decision once you reach your preservation age!
Leaving planning until the last minute means that you may not be able to live a comfortable lifestyle once you retire, so starting out early will help you provide you with peace of mind.
So what can you do at this stage?
keep debt to a minimum
Keeping your debt to a minimum throughout your life means that there will be less to pay off come retirement.
Credit cards are a tempting way to spend more money, and are easily available through banks. However, they also have high interest rates which can all add up on to how much you’re paying back in order to wipe the debt.
Instead of taking out credit cards or personal loans, stay on top of your finances by saving first. For instance, instead of purchasing a car with dealership provided finance, you could opt to save up money for it yourself over a period of time.
This will save you having to pay for things such as admin fees, brokerage fees, and of course any interest that would go to the finance company.
It may take a longer time as you’ll need to gather up finances, but it’s better for the long term as you’ll be saving yourself some money!
save your money
A little goes a long way, and if you’ve started saving for your retirement income early then it will all pile up into a nice sizable nest egg in the end.
Ensure that you’re making wise financial decisions throughout your younger years, including what you are spending your money on. You don’t have to become a frugal hermit for your whole life, but it might be a good idea to question purchases before making them.
For example, blowing your savings on an around the world holiday when you’re in your twenties is okay, but when you’re nearing your forties it might not be such a good idea as you will have less time to save up again.
we can help
If you are wondering where to get financial advice, we can help. Why not get in touch by calling 1800 626 881 or by using the ‘contact us’ tool on our website.