7 Tips To Maximizing Your Retirement While You’re Young

Although it’s a sad truth, a lot of young people don’t believe they can retire. It just seems like such a foreign concept, and with massive student loan debt amongst a number of other bills, being able to one day say goodbye to working is a pipe dream. However, it doesn’t have to be.

Yes, with a little bit of discipline and a keen sense of financial literacy, you too can retire at a decent age by starting young. Here’s how:

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Talk To A Lawyer To Get Your Social Security Straightened Out

One of the biggest benefits of retirement has to be social security, which is the primary safety net a lot of retirees rely on. And if you really want to maximize the most out of your benefits, then talking to a lawyer might be somewhat advantageous. However, knowing which one to go to can be a tough task.

First and foremost, find a lawyer that specifically covers social security law. These might vary region to region, for example, Parmele Law covers the SSI Qualifications for Springfield.  Check and see who might be around your area, as this is one benefit you don’t want to miss.

Look Into A Balance Transfer

Another great strategy to getting more for your retirement is beginning the process of knocking out your debt. And if you find yourself with quite a bit of credit card debt, then going for a balance transfer might not be a bad idea. Not only will this give you a lower interest rate on your card, but you’ll additionally clear up any late payments or bad remarks from previous lenders. In fact, some balance transfers give you no interest for a few months, giving you a grace period to save.

Shop around for some options that allow a transfer, as this is one debt consolidation strategy that’s known to work.

Cut Back On Going Out

While the people you may know might constantly be posting on Instagram and Facebook, giving you FOMO, cutting back on going out can play a significant role in the long term. Although it’s not always the most fun to hear, reducing how much you spend on entertainment and eating is a habit that you’ll thank yourself for later. Try creating a calendar of events that are free or don’t cost much and stick to them, as well as make it a point to plan your meals. Because while spending that money now might seem like fun, it’s only hurting your future financial goals.

Starting Saving

Despite what you might think is the norm, most people are actually pretty bad at saving money. According to GoBankingRate, approximately 62% of Americans have less than $1,000 in their savings account. And if you find yourself in that range, then it might be wise to start setting aside some of your paychecks.

Look at what percentage you might be able to afford off of what you make. Even if just 5 or 10% it can make a significant difference, and will put you in a position to plan better for retirement. Make no mistake, it’s possible to retire early, especially if you know how to stow money away now.

Don’t Be Afraid To Take Risks

When calculating your finances towards retirement, it’s a good idea to set aside a small percentage to take risks with. After all, that leap could have a big payoff, which will potentially accelerate your process. For example, as Bitcoin’s price has grown over 903.01% this year, even putting just $100 in a month could’ve transformed into thousands by now. Despite what the critics say, taking bets on roughly 10% of your savings or investments might completely change the course of your financial picture, and is something to have some fun with.

Create A Safety Net Early

A commonly followed practice regarding a retirement plan is investing in a 401k or IRA account. These investment strategies are some that have been wildly popular with previous generations, but not nearly as much with millennials. As noted in a study presented by CNBC, 20% of millennials say they’ll never invest, while 53% say they don’t feel comfortable with it. Granted, these concerns are valid, however, if there’s one thing that’s true about long-term growth, the stock market is always going to be key. See if there are any investment plans at your work, or if perhaps an investment app might be useful.

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Set A Goal And Stick With It

Finally, as retirement seems like such a distant reality, we tend to neglect to set the age we want to retire early on. This can be what makes or breaks your saving plan, as setting that age for 55-60 isn’t as far off as it might seem. However, setting this goal, knowing the amount you need to set aside, and how you’re going to deal with any roadblocks is crucial. Get these three steps in your head now, because the quicker you grasp this concept, the more determined you’ll be to achieve retiring early.

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What are some steps you’ve taken to start working towards your retirement? Comment with your answers below.

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