Right out of college, your first job, if you're lucky, your first real bills. You're filling out paperwork for the human resources department, and one of them says "401K" or "IRA" or "Retirement" and your eyes glaze over because you have not got a clue what to do. Stop. Take a moment and breathe deeply.
Here's what you do...ask the very nice lady who's helping you fill out the paperwork if your company or agency offers a "match" to the retirement program. (The technical term is "matching contribution", but that's not the important part here.) Tell her that you want to contribute enough to "get the match". Typically, this will mean that between 3% and 6% of your income will be diverted from your check and put into retirement for you. And I know what you're thinking...6%??? I can't afford to lose 6%, I'm barely it on the salary they are offering!! Again, breathe deeply and take a step back. The easiest way to save for retirement is to get a head start. You don't have to do much heavy lifting if you have 40 years to lift...And if you start now, with no kids, wife, husband, house, dog, cat...trust me, you'll thank yourself later.
Save, Invest, Give Tip #1 - Use your company match to start saving for retirement with your first job!
P.S. - I've said it before but...everything you ever wanted to know about personal finance is on the internet somewhere. My intention is not to re-invent the wheel but to provide enough knowledge (including websites!) that you'll be empowered to go find out more. Send me comments and let me know how that's working out for you!
Here's what you do...ask the very nice lady who's helping you fill out the paperwork if your company or agency offers a "match" to the retirement program. (The technical term is "matching contribution", but that's not the important part here.) Tell her that you want to contribute enough to "get the match". Typically, this will mean that between 3% and 6% of your income will be diverted from your check and put into retirement for you. And I know what you're thinking...6%??? I can't afford to lose 6%, I'm barely it on the salary they are offering!! Again, breathe deeply and take a step back. The easiest way to save for retirement is to get a head start. You don't have to do much heavy lifting if you have 40 years to lift...And if you start now, with no kids, wife, husband, house, dog, cat...trust me, you'll thank yourself later.
Save, Invest, Give Tip #1 - Use your company match to start saving for retirement with your first job!
P.S. - I've said it before but...everything you ever wanted to know about personal finance is on the internet somewhere. My intention is not to re-invent the wheel but to provide enough knowledge (including websites!) that you'll be empowered to go find out more. Send me comments and let me know how that's working out for you!
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