How to Save Now and For the Future
As young adults we can use a percentage system in our everyday lives to help us become better savers and help us secure the future of our retirement. Saving money now can help us in the future with everything we need to live a comfortable life. The percentage method is simple. Fifty percent of your paycheck will go towards your retirement and long-term goals, twenty percent will go towards short- term goals, and the remaining thirty percent will go towards everyday necessities and rewarding yourself. Short-term goals would be purchasing items such as a laptop, a car, and tickets for a vacation. Long-term goals would be considered purchasing a home and saving for your retirement.
One step we can take, as young adults that will help us become better savers is to have a job. Jobs are a great way for young adults to learn how to save because they teach a person responsibility and how to prioritize. When someone receives their first paycheck they immediately want to spend it on clothes, food, and buying items they do not actually need. One action I would take once I would receive my paycheck would be to set aside at least fifty percent. Setting aside money now while I am young is an easy task, since I do not have any bills to pay. Another step to help young adults save is to set short-term goals for themselves such as purchasing a new laptop. Another way young adults can become better savers is rewarding themselves. Balance is required when saving; young adults should reward themselves every now and then. Instead of eating out you could cook for yourself and use the money that you would have spent on treating yourself to something you have wanted to purchase. Saving is important but sometimes you do need to enjoy yourself and splurge a little.
One of the steps I can take while I am at a young age to secure my future retirement throughout the next five years would be to use the methods I stated above. Using those methods will help me develop good saving habits, as I grow older. An additional step that I can take is that once I have a job and I am receiving paychecks deposited into my bank account, I can speak to a bank representative so that a portion of my check is automatically transferred into my savings account.
Throughout these next five years and beyond I would continue to have my future retirement as a long-term goal and continue to follow my percentage method in order to live a comfortable life post-retirement.