Personal Finance 101: Retirement Planning

The word retirement sounds relaxing, but if you did not save for your golden years you had better start hoping for a miracle. If this statement does not scare you, let’s put it into proper perspective. If you do not save for retirement you will be a burden upon your loved ones, your society, and yourself.

This is probably the shortest section on thebudgetcalculator.com because it is the most straightforward. Participate in your company’s retirement plan, or get an IRA (Individual Retirement Account). IRA's are offered at most banks and brokerages. So if your company does not have a retirement plan or you are self-employed, do yourself and the world a favor by starting your retirement savings today! The younger your start, the more you have at retirement, because the money put into an retirement account has more time to gain value before you need the funds.

Question: I don't have much money to put away, does it actually make a difference?

Answer: You will be amazed at what even a little bit put away now can do for you down the road. Make sure you are following your monthly budget and see if you can squeeze a few more dollars out for retirement.