I came across a great “retirement plan” idea from a magazine article. The idea can be altered a bit for someone who’s just begun the workforce, too. It’s fun, easy to remember and can really add up into some serious savings.
Here’s the idea: Save your age plus two zeros every year. Whoo-Hoo 21! means putting aside $2,100 that year. The next year would be $2,200 and at Hello 50! you put aside $5,000. You can do this over the year-long period, or as a single, big birthday gift to yourself. You can also set it up with your bank to automatically transfer the funds into your retirement account with a preset schedule.
If you can’t set aside the two zeros for retirement now, put aside your age every week. ($35 per week when you’re age 35.) It’ll add up to half as much as the two zero system, but half is half more than nothing!
If you’re planing to wait until your birthday to begin this, write it down, set it up as a reminder and with your bank or you won’t do it. If it’s not important enough to do this week, it’ll fall to the land of could’ve, would’ve, should’ve. Be pro-active. Set it up now.