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 Imagine yourself at the age of 65 years old. Picture yourself relaxing, drinking a nice cup of tea and watching your grandkids play in front of your house. No worries cross your mind. The kitchen has more than enough food for the whole family. As you watch your kids, your mind thinks about the next birthday gift for one of the grandkids. A smile appears on your face as a result of thinking back on the smart decisions you made, preparing yourself with a financial plan to secure your retirement.

Your retirement is your future

To securely prepare yourself for retirement, the best tip I can give you is to start as early as possible. The earlier you start, the easier it is.

If you start saving for your retirement at the age of 20 you have 45 years to accumulate savings. The monthly savings will be very small. Let’s say you have a salary of $300 and you put 10% ($30) into your retirement. In the first year you will have $360 saved. Your salary will increase and the interest in your retirement account is starting to compound. If your salary doubles every 10 years you will have more than $250’000 in your retirement fund. If you stop working at the age of 67 you don’t need to worry about asking your kids to support you. You will have enough until you  are 90 years old.

Let’s play with this savings calculator: 

https://www.nerdwallet.com/article/banking/savings-calculator