Open an account. I like going directly to the source. You can get a broker to open an IRA for you which may be more convenient. But, you will pay a hefty sum for that convenience. It has become fairly easy and very inexpensive for the individual investor to open investment accounts online. I like Vanguard and T.Rowe Price. Both will allow you to make free regular investments into your IRA.
Calculate how much you need to save. Now that the account is open, we need to figure out how much of an investment it is going to take to get us from here to there. Try out one of these retirement planning calculators to get an estimate of how much you will need to save on a monthly basis.
Direct deposit. Out of sight, out of mind. Humans are generally very easy to fool. If we don’t see (or have access) to the money, we won’t spend it. The trick is to have our employer direct deposit the money to our 401(k) or IRA, before we can get our hands on it. So, use the information from the calculator to give you a rough starting point of how much to have deposited each month. If the number is larger than you would have hoped, then just start with what you can each month and gradually increase it.
Don’t quit. In order to reach any goal, we must stay the course. There will be times when it is easy and times when it is hard, but consistency is how the tortoise beat the hare. The hare was a lot flashier and could move quicker, but he wasn’t consistent. When it comes to saving, it is not about how much we make, but about how much we keep. Don’t stop putting money towards your goal and commit to never touching your retirement savings (until retirement of course).
Related posts:
- Paying off loans or retirement savings
- Retirement savings calculator
- How to save money for retirement
- 4 Steps to Get Your Finances Under Control
- Retirement Plans (Part 2) – IRAs: Roth vs Traditional
- Open a high yielding savings account
- Biblical retirement
- Find the highest rates on savings accounts with Bankfox
{ 2 comments… read them below or add one }
Thank you very much and I do appreciate the information you have provided which I find is excellent to me. You have given me an opportunity to tell another to stop spending and save. By reading I have learnt quite a lot on how to Budget and save. Yes, at my ripe old age at 48 while getting older each year, I think its time up to open my eyes on saving rather than spending which does’nt have a meaning at times and money earned is just wasted.
Once again, Thank you for your advice and guidance. God really works in strange ways and he sends messages to the one who seeks it. May God richly bless you in your kind deeds.
Best wishes and regards.
George Rooff
George,
I am glad to see that you are still learning – I believe that is something that God always wants us to be doing! Thanks for the encouragement!