Congratulations! You’ve landed your dream job, celebrated in style, and now it’s time to put your head down and produce tangible results. Over the years, your determination to the company and loyalty to the grind will help you garner more responsibilities as you rise in seniority. Who knows? If it suits your drive, you might even make CEO.
Regardless of how high you climb, it will only make a difference to your quality of life if you manage your income responsibly. This means saving as much as you need to fund your life’s goals.
- If you’re interested in spending your later years traveling the world, you’re going to need to put away a much greater sum than someone who’s a homebody.
- If your goal is to be able to eat out whenever you feel like it, it’s up to you to adjust your savings rate higher to compensate for rarely cooking at home.
As much as you crunch the numbers, you’ll probably find that saving alone won’t be enough to fund the life you want. While there are payday loans, these should only be used for emergencies. Luckily, you’re notified that your company offers a retirement plan where you can invest your savings in stocks and bonds that grow in value over time.
If you’re unfamiliar with the terminology, the investment world can be an intimidating place to explore on your own. But have no fear. Once you internalize these retirement plan benefits, you’ll be well along the way to financial independence.
Be Prepared
Regularly contributing to your retirement plan is the best way to prepare for life’s ups and downs. Being hit with an unexpected expense is only traumatic if you have to scramble for the money. Take comfort in knowing that, as your investments benefit from compound interest, you’ll soon have saved enough to fend off any emergency.
Having said that, we can all fall on hard times in spite of our best efforts. Sometimes a payday loan from a responsible lender is the only way to keep your head above water. Good money habits are key: click here to learn more about how to reclaim your financial life.
Get the Match
Many companies that offer defined contribution retirement plans will match an employee’s bi-weekly contribution up to a certain percentage of their paycheck. Let’s say that every two weeks 10% of every paycheck is automatically deposited into your retirement account. If you’re employer offers a 5% match, you’ll actually end up depositing a total of 15% of your pay. This amounts to free money to incentivize you to invest. If you found 5% of your salary on the street every other Friday, how could you just walk by?
Age Gracefully
After three decades of coming into the office, you won’t have the time or the energy to worry about money. Your main concerns will involve no longer working and doing what you want, when you want, for as long as your heart desires.
Now, the only way you’re going to have control over your retirement is if you invest thoughtfully over your career, taking advantage of your employer’s match at every opportunity. That’s how the balance in your account can go from insignificant to the source of a dignified elderly life.
Your salary at your dream job may be fantastic, but due to inflation the purchasing power of your cash declines about 2% per year. Don’t let your money waste away. Participate in your company’s retirement plan and give your golden years a little extra shine.
