I’m Too Young To Think About Retirement….

I think a majority of Americans have said this at one point in their life…. “I’m too young to think about retirement”. When I see statistics that show how unprepared a majority of people are for retirement in respect to savings, it really bothers me because with the advancement of medicine and technology, people live longer which means your savings has to last longer.

All too often I hear of people realizing that they do not have enough for retirement and it’s heartbreaking to witness this. I understand that when you are young it may not make sense on saving for retirement because you need every bit of money you earn to make ends meet. We have seen many financial experts talk about compound interest and how it can have a huge impact on your retirement account the earlier you start, but many people procrastinate on saving until it’s too late. Now while I recommend starting early to save, it’s important to say that you can start at any age because something is better than nothing. Don’t fall into those age traps which are either being too young or too old to save for retirement.

It’s important to think about saving for retirement no matter what age, but understanding that the younger the better because the longer your money can grow, the better off you will be when retirement zooms closer. Make sure to take advantage of the free money your employer may offer through a 401k match. Aim for a minimum of 10-15% of your income and learn to forget about that money so that you can live on what you have left. Also remember to rollover 401k accounts when you leave your employer because sometimes these accounts get left behind. There are multiple ways to save for retirement so make sure you start early.

If you have any questions about this topic or any financial topic, be sure to reach out to us. Use the contact form at www.medinaadvising.com

Live Debt-Free

Do you ever look at how much debt you have and ask yourself, “How did it get to be this much?”. Many Americans do and trying to pinpoint where it came from can be tough when you don’t have certain things in place. When you hear of people being debt-free, you probably wonder how they did it or they must be rich, but the fact is that many of us can reach the debt-free title. There are many things that contribute to becoming debt-free, but I want to focus on some of the small things that are often the hardest to execute. Here are the 5 traits to start practicing:

1. Goal-Oriented

People must learn to set goals not only for becoming debt-free, but in all aspects of their lives. We have all heard the cliche “You can’t get to where you’re going if you don’t know the directions to get there”, well it’s the same when trying to become debt-free. You have to set what the goal is, why you are setting it, how you will get there, and when you will get there. Goal setting is like everything else, you have to practice to get good at it. The hardest part is executing the plan to reach your goal.

2. Disciplined

It is important to have discipline in life and especially with your finances. You have to develop the discipline to change spending habits. Simple things such as going from name brand to store brand adds up. Think about it, you didn’t get to the amount of debt over night, it slowly added up in most cases. Same with saving on little things because cutting out certain wants and only buying what is necessary will allow you to apply that to paying debt off.

3. Patient

Along with discipline, one must learn to be patient because getting out of debt takes time. Unless you hit the lottery or come across a large sum of money, you have to understand it will be a journey. There will be times were you will struggle with your inner self on spending “just this one time”, but keep reminding yourself why you are doing what you’re doing. Knowing that it takes time will help minimize those struggles.

4. Secure

It’s important to keep your eye on the goal and be ok with the change of lifestyle that happens when trying to pay off debt. Being secure with the decision and change that happens because you know that your financial stability will increase. Also knowing that the feeling of being debt-free will be worth it. Not only that, but the experiences you gain from adjusting to the new lifestyle will secure your financial freedom because your new lifestyle is one that incorporates these traits discussed.

If you have any questions about this topic or any financial topic, be sure to reach out to us and we can answer them. Use the contact form at www.medinaadvising.com