Saving For Retirement

When you think about it, most of us stop work at around 65, and many of us might have another 20-30 years to go after that.

That is around a quarter of a century – a long period of time to be not in paid employment! It might sound great – but only if you have some money to enjoy it with. This is why it makes sense to start putting a little bit aside towards retirement now.

Retirement might seem eons away, but there are ways to put some money away so you won’t even notice it’s gone – well, hopefully not much anyway. Tips include:

• Co-contribute towards your superannuation fund. Your contributions can grow considerably over time, especially if you are young now. The Government may also match your contributions up to a certain level. Ask your employer to put $50 of your monthly net wage towards your super – it’s likely you will barely even notice it’s gone.

• Start some small investments. Finance experts generally agree that it’s better to invest in a mix of assets rather than putting all your eggs in one basket. Do a budget and decide how much money you are willing to invest and how much risk you are willing to take – then look into some long-term investment options. Make contact with a financial adviser: they can help people at all stages of financial planning, not just those with plenty to invest!

• Save money now, by getting rid of high-interest debt quickly, checking prices online before purchasing, and making use of reputable trading and auction sites for some items. Keep your eye out for freebies and bargains but only for things you really need– if you wouldn’t normally buy something, then don’t do so just because it’s cheap.

• Don’t be afraid to ask for help. For instance, if you are moving into your own place, ask friends and family for furniture they don’t want, rather than racking up credit card debt on new things. It’s true that one man’s (or woman’s) trash is another’s treasure and what one friend or relative is eager to get rid of might be exactly what you are looking for.

You might not have much now, but what you do have can grow over a long period of time if you nurture it. Don’t make the mistake of blowing it all – tuck some away and actively plan for your future and your retirement. The thought of approaching retirement should fill you with joyful anticipation, not anxiety.

Ryan O’Connor is the creator of the online personal finance magazine and blog Saving Money Expert. Drop by for more great ideas on saving, budgeting tools and more.