This short video emphasises the importance of saving for retirement early as it isn’t as easy to catch up as you may think.
A video transcript is provided further below, if you would prefer to read about it.
If you are tempted to put savings ahead of expenditure you are missing an amazing trick of the trade, which can be summed up neatly by this phrase:
“The more you can save, the sooner, the better”
The link between when you start to save and the outcome you achieve can be shown by the example of Jack and Jill, twins, who both have savings strategies.
Jill decides to start saving at age 25 and saves £100 per month from there until her 65th birthday.
Jack waits 20 years and decides to start saving £200 from age 45. But he can’t catch Jill because he started too late.
Here are the amounts each will have at age 65:
Although getting into the savings habit early pays big dividends it is never to late to make a difference and all individuals, regardless of age, can benefit from regular efforts to work out how to save more.
“Do not save what is left after spending; instead spend what is left after saving.” ~Warren Buffet
One idea is to reverse the budgeting exercise and place a saving amount at the top of your budget, as the priority.
If you combine this approach with a rigorous review of your outgoings, you can often stretch the savings amount.
And finally it is important to remember a key difference between spending and saving. In the former case you are in effect paying someone else, in the latter you are paying yourself.
Every effort you can make now towards helping boost your own future funds will pay back many times over.
A staggering 35% of the UK adults have NO Pension Plans and 43% don’t even know how much they will need for their ideal retirement lifestyle!
Download this free “Retirement Income Guide” to help you understand your options and make the right decisions NOW so that will be able to enjoy your retirement without worrying about money.
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