Planning for a Successful Retirement

Retirement planning is best done when it is a tiny dot on the horizon. With social security is mere dream for all the younger generations out there, everyone should make their own future and prepare as if nothing will be handed to them on a silver platter. Saving for your future falls into many categories: shorter term goals like vacations, updating the kitchen or a down payment for a car, while long-term plans could include buying your dream home and retirement.

Saving for retirement is one of those things that can quickly be forgotten and before you know it, you are 45 years old and panicking because that dot on the horizon is coming into focus. In a perfect world, putting money away for the golden years should start with your allowance as a child. Getting into the habit of socking money can't start early enough. Regardless of the amount of money you make, whether it's $5/week for mowing the grass and taking out the trash or $6,000/month for heading up the department, saving money for the future should be a habit. The old adage is 10% of everything you make goes into the bank. That's not a set-in-stone figure, but the concept is correct - if you make more, save more. That also teaches you to live within your means because part of every dollar you bring in is being set aside.

Today's society is not set-up to save responsibly for retirement. Students are leaving college with mountains of debt from credit cards and hefty tuitions, only to begin working in jobs that pay less than they expected. They are overwhelmed with getting steady money for maybe the first time in their lives and spend too much on housing, get a brand new car (or worse a lease) and even more credit card debt. After a couple years of that, they are married, maybe a kid and look to buy a house. Their credit has some problems, so now they pay a high interest on the mortgage. Now a parent, they buy all the latest stuff for the child and look for a bigger house, more cars. The pattern goes on and on. No wonder there are so many people worse off at age 45 than 18. At least at 18 they were at $0, where at 45 they are saddled with debt and many financial commitments.