Financial IQRetirement August 21 2018

How To Start Planning for Retirement in Your 20's

Planning your retirement is probably the last thing on your mind as a young adult. Your financial priorities may include simply paying off student loans, making rent, and buying groceries, not contributing your income to retirement investments. However, investing in your retirement early gives you long-term benefits. Some benefits to contributing to your retirement in your 20s include:

  • Increasing compound interest
  • Reducing your taxable income

Below are some tips on planning for retirement now.

Take Advantage of Your Employer’s Retirement Plan

If your employer offers a plan, make sure to enroll! These plans may include a 401k or 403b. Select the amount you prefer taken from each paycheck to be contributed to your plan. If your company agrees to match your contributions, these plans can be especially beneficial. After all, this is an effortless way to plan financially.

Budget Efficiently

Break down your expenses into categories and prioritize your retirement contribution. Tracking your spending habits by writing down your purchases, typing them into a document, or taking advantage of a budgeting app can help you reduce unnecessary spending.

Reduce or Eliminate Debt

Setting up a payment plan for student loans and credit card debt is a vital step in planning for your future. However, do not wait to begin those retirement contributions. Create a financial plan that allows you to simultaneously make monthly payments toward reducing your debt and to your retirement savings.

  • Start by paying off loans that carry the highest interest rate.
  • Set up automatic payments or a reminder to pay each month.

Take these tips into consideration and start creating a plan that works best for you. Starting a retirement plan, budgeting efficiently, and eliminating debt will help you kick-start saving for your future. The most important step to take is beginning to contribute to your plan now, even if you can only put a small amount of your money aside for retirement.

Need some ideas on how to start budgeting?

TRY OUR 30-DAY FINANCIAL CLEANSE

January 08 2021

FHA Loan Limits for 2021

For first-time buyers, the limit on what they can borrow impacts their ability to buy a home. And changing housing prices can...

Read More

December 23 2020

4 Easy Ways to Clear Clutter for the New Year

Here’s how to get past the failed resolutions and good intentions with some fool-proof, actionable steps to clear clutter...

Read More

December 17 2020

How Much Down Payment for a House is Enough?

The typical down payment on a home depends on your income, eligibility, and goals—and finding the mortgage that fits best....

Read More

December 09 2020

Eagle Home Mortgage is Now Lennar Mortgage

What’s in a name? A smoother, more efficient home-buying experience. What’s in a name? A smoother, more efficient...

Read More

November 17 2020

How to Get Pre-qualified for a New Home Loan

These easy steps will help you find out what you can afford to be ready to buy.

Read More

November 06 2020

Surprising Facts About VA Loans

A VA loan can help eligible veterans purchase the home of their dreams, but they come with a few conditions a buyer should...

Read More

October 21 2020

What is an FHA Loan?

For borrowers with tight cash or tricky credit, an FHA loan can be the answer. But not every situation is a good fit for these...

Read More

October 07 2020

Homebuyer Solutions: Making Dream Homes a Reality

Our Homebuyer Solutions Group helps successfully secure financing for homebuyers with credit challenges.

Read More

September 30 2020

20 Easy Ways to Turn Your House into an Autumn Sanctuary

Here are 20 cozy, simple ways to decorate for fall.

Read More

First34567Last

Search Results for query

October 12 2021

Should I Buy a Home with an HOA?

In the excitement of buying a new home, it can be easy to overlook the presence of a Homeowners' Association, or HOA. But an HOA can have a lot of influence over your purchase choice, including your monthly payment, the money you need to set aside for...

Read More

October 04 2021

14 Brilliant Ideas for Decorating Your Porch This Fall

Simple and inexpensive solutions for a cozy, colorful porch that says "welcome."

Read More

September 23 2021

7 Surprising Things First-Time Homebuyers Should Never Do, According to Loan Officers

Loan Officers Rachel Alcaraz and Haley Aivazian share their must-follow tips for first-time homebuyers.

Read More

September 08 2021

Expand Your Living Space with the Ultimate Patio

With some creativity, DIY spirit, and a bit of a budget, you can transform your patio into a space not only that you love, but that creates value.

Read More

September 02 2021

Mistakes Sellers Make When Showing Their Home

Here are some do's and don'ts to help show your home in the most appealing light.

Read More

August 26 2021

Organize Your Home for Back to School

With school just around the corner, now's the perfect time to whip your home into shape and get ready for smooth sailing into the school year. Here's how

Read More

August 18 2021

Home Repairs You Must Do Before You Sell

If you are getting your home ready to sell, you're better off fixing these issues now. And even if you aren't ready to sell, why not take a tour of your home with a buyer's eye, and fix those irritating repairs now so you can enjoy your home while...

Read More

August 11 2021

What is the Proposed First-Time Homebuyer Tax Credit?

Read More

August 05 2021

How to Find the Best Fixer-Upper Home

How do you know if a diamond in the rough is a good purchase? Here's how to test the waters and tell if it's okay to buy that fixer-upper home.

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?