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Retirement may seem a long way off. For many of us, true retirement doesn’t even seem like an option. The truth is that if you begin planning early, your dreams of retirement can become a reality. You simply need to have a plan. Here are some things you’ll need to keep in mind as you work towards your golden years.

Calculate Your Needs

According to the United States Department of Labor, you will need approximately 70-90% of your preretirement income in order to live comfortably. The less you make currently, the higher the percentage you’ll end up needing. Sadly, less than half of the people living in the USA have taken the time to sit down and calculate their future needs. Knowing what you will need will give you a goal for your savings as you work and grow your income.

Take Advantage of Employer Operated Retirement Plans

Many large employers offer 401(k) retirement plans to their employees. There are several reasons to participate. First, the money you contribute is taken out of your paycheck before taxes, meaning you’ll pay less to the state and federal government each pay period. Second, many employers will match your contributions up to a certain amount, so make sure you are contributing that maximum amount to get the most benefit.

Try a Separate IRA

An IRA, otherwise known as an Individual Retirement Account, is another great way to focus on savings without depending on your employer. Federal law allows individuals to put up to $5,000 in an IRA each year. If you are over the age of 50, you may be allowed to contribute more. You’ll need to talk to your financial adviser about the differences between a Roth IRA and a traditional IRA so that you can understand the tax implications when it is time to make withdraws.

Diversify Your Portfolio

Don’t rely on your 401(k) or IRA plans alone. Talk to a financial adviser about investing in stocks, bonds, and maybe even index funds. As the economy changes, you’ll find that some methods of investment are more profitable than others. Diversifying will ensure you never have all of your eggs in one basket so that you can take advantage of growth in several different areas over time.

Never Stop Saving

Never stop saving, no matter what. While you may over time need to consider debt consolidation or the refinancing of your mortgage, do your best to make sure your retirement plans are always funded. Even those facing bankruptcy are urged not to touch retirement savings as a method for paying off debt. Why? Retirements savings are protected by bankruptcy law. Do your best to keep your accounts funded regardless of your current situation. Otherwise, you’ll have nothing to fall back on when you are older.

The earlier you start saving for retirement, the more you’ll have to support yourself with when you eventually retire. Talk to a financial planner if you need help determining what types of investments are best for your current economic and financial situations.

About the Author
Deborah Blair is a full-time writer who enjoys writing about personal finance. She specializes in retirement planning, financial stability, bad credit loans, and credit repair.

Saving up for a car (or any major purchase) can seem daunting, especially if you are struggling to make ends meet every month. It can be done if you have a little self-control! Don’t resort to loans or credit cards. Here’s how to save up for that car of your dreams, no matter how much it costs.

Tip #1: Figure out how much you need to save to afford the car

You can’t be an effective saver if you don’t even know how much you need to save. How quickly do you hope to make the purchase? Take the total price of the car and divide it by that number of months. That’s how much you have to save every month to make the purchase possible. Work that number into your budget as though it was a monthly bill you had to pay before you get to spend any money on entertainment.

Tip #2: Cut your grocery costs

Food is a major expense for most families, but you can cut your costs significantly with just a few tricks. First, get to know the prices of your regular purchases at multiple stores in the area. Prices can vary from store to store, but most of us shop at one place because it’s habit. Knowing which stores are having sales can help you cut your costs – and this is only amplified if you use coupons. Also, skip the prepared meals and instead go for food you can make yourself. Not only will it be healthier, but it will also be cheaper in most cases.

Tip #3: Start a baby-sitting exchange

When you and your spouse want to have a date night or have to work at the same time, you’ll end up spending money on a sitter that could instead go into your new car fund. Talk to the parents of some of your child’s friends. They probably have the same problem. Instead of paying for a sitter or day care, try to work out a schedule so that you all take turns sitting. In exchange for hosting one sleepover a month for five kids, you could get free sitting for five nights!

Tip #4: Ask for a discounted rate on your monthly bills

Sometimes, all you have to do is ask and you’ll get a price cut. If you feel overwhelmed with bills for things like your cell phone or cable, or if you pay a very high interest rate on your credit card bills, call these companies and ask if there are discounts available. If you mention that you’re considering moving to a competitor, often, sales reps can find you a cheaper rate.

Tip #5: Stop paying for things that could be free

Lastly, before you make any purchases, ask if they’re really necessary. How much do you pay every month for bottled water when you could use a refillable container? How much do you pay in ATM fees when you could learn to plan ahead to get the cash you need directly from your bank? How much do you pay for bags of garbage that could be cut in half if only you would recycle, which is free? Stop paying for things that could be free.

About The Author

Allison works with CarInsuranceQuotes.net, where you can go to get cheap car insurance that protects you financially no matter what happens while driving.