For young people in their 20s or 30s, retirement seems to be a lifetime away. It is true that you will get plenty of opportunities in the future. But, it is never too early to plan your retirement and start saving for it. William Schantzsays that the best time to start saving is the moment you get your first paycheck. The next best time is now. Planning your retirement a little early in life means that you will get plenty of time to build your savings. This will also help you develop some good money habits.
If you still haven’t started, read more to find some compelling reasons to save for your retirement!
Why Schantz Says to Start Saving for Your Retirement in Your 20s
Once you start aging and nearing the time of your retirement, the years will slip by very fast. You will also have to deal with bigger expenses like healthcare, mortgages, family, etc.
Saving for your retirement in your 20s is the most ideal as you will have plenty of time and energy, explains William Schantz. Even if you have student loans and allowances to pay, setting aside the smallest amount of money will help you big time.
Here’s why your 20s are the perfect time for you to start planning and saving for your retirement:
“You Get to Develop Financial Habits” – Schantz
Developing good money habits in your early years, will help you save money even as you age, says Schantz. You will be able to practice consistent saving patterns if you set your priorities right at the beginning. People have the chance to be more flexible in their 20s compared to when they move on in life and careers. For instance, a person might not be able to save as much with family and kids as they would when they are young. Saving for retirement becomes very tricky once you settle down, start a family, invest in a home through a mortgage, etc.
“You Can Save More While Being Comfortable” – Schantz
Some people believe that they will save a good amount of money for their retirement when the time comes. However, there is a huge difference between starting to save earlier and saving a lot of money in later years. You can save a sufficient amount of money for your retirement very comfortably if you start in your 20s. However, if you start later on, you will have to strain your budget and restrict your family from certain things. The best way to save the money for your retirement is to start small and let your savings compound over time. .
In a Nutshell
To put it simply, the earlier you start saving for your retirement years, the better it is for you. You can save a lot of money while being comfortable and without giving up on the things you like. According to William Schantz, the best part about saving in your 20s is that you can develop some great financial habits. These habits will help you set financial priorities in the future as well. This will also help you achieve the desired financial independence later on in life. So, do not wait up and start saving and planning for your retirement years right away.