Never Too Late: How to Fast Track Saving for Retirement When You’re Already in Your 30s
In your 20s, retirement may seem like something that’s too far off in the future for you to worry about. Entering your 30s, you’d soon realize how important time is when it comes to your long-term financial goals, your retirement included.
To make things more complicated, you’re likely to find saving even more difficult as you take on more responsibilities when you marry or start having kids. Still, it isn’t too late for you to make up for lost time and finally jumpstart your retirement savings.
To get started, Olympic athlete turned financial advisor Lauryn Williams recommends that you take a closer look at your cash flow. She says that you’ll find the ‘black hole savings’ even by just going through your budget and expenses one time.
And when you find out how much money you can put aside, put it into a savings account right away. Another thing you should do is build an emergency fund if you don’t have one yet.
Depending on your income, you can start with $5,000 to $10,000 as a buffer and then save up to six months’ worth of your take-home pay.
Balancing Debt and Savings
If you have a lot of unpaid debt, you might find it harder to start saving. Williams believes that you can still find a balance between paying those off and securing your retirement.
For example, you can apply for debt forgiveness or sign up for an income repayment plan if you have federal student loans. However, be reminded that qualifying for debt forgiveness isn’t guaranteed and not many people are eligible for it.
In the short-term, you can use your student loan payments to save up for retirement as the president has suspended federal student loan payments until 2021.
Meanwhile, those who have private student loans are recommended to consider refinancing their debt to get a lower rate.
Put Yourself First
If you’re already a parent, you’re probably already planning for your kids’ education. While you aren’t discouraged from providing for their college fund altogether, it’s encouraged that you put yourself first.
Focus on saving for your retirement first if you can only afford to set aside funds for one thing at the moment. Keep in mind that your child can take out a loan for their education but you can’t do the same when your retirement comes.
More in Legal Advice
Here’s How You Can Secure a Job Right After College
Many people attend college to have the edge over their peers in a super-competitive job market. Still, fresh graduates usually spend time doing...May 3, 2021
Law Students Are Using Crazy Tactics to Stay up All Night And It’s Taking a Toll on Their Health
If you are studying law right now, chances are, you are committed to the profession, and rightfully so, since you’re in it...April 23, 2021
Here’s How You Can Improve Your Credit to Land The Best Mortgage Rates
Let’s cut right to the chase – getting a mortgage is essential to buying your dream home. Unless, of course, you have...April 22, 2021
This Grandmother Filed a Lawsuit for Suffering Emotional Trauma from Daughter’s Childbirth
Most family members are thrilled to watch their loved ones give birth, but one grandmother was particularly horrified after witnessing a traumatizing birth...April 15, 2021
Wendy Williams Makes Up For Dissolving Husband’s Foundation With This Unique Partnership
Television host Wendy Williams has made a name for herself as everyone’s cool TV aunt who’s always in the know when...April 12, 2021
Here’s When You Can Keep the House After a Divorce
Divorce is very difficult as is, but what makes it even more troublesome is controversy over assets, especially the marital home....April 7, 2021
Supreme Court Favored the Class-Action Waivers, Making it Harder For You to Sue Your Employer!
Do you harbor a dispute with the company or employer you’re working for? While it is an employee’s right to file a lawsuit against...April 5, 2021
Are You Making These 3 Common IRA Mistakes?
Most investors think of IRA as a hand-off, long-term investment tool. However, that doesn’t mean one should ignore it completely. Remember...April 4, 2021
Home Warranty VS Homeowners Insurance: Which Is Better?
Okay, be honest – Isn’t buying your own house on your bucket list? Well, it is for many. Everybody dreams of...March 26, 2021