How do you picture yourself years from now? We are often not so keen about preparing for our retirement. For the majority of the Filipinos, they push that worry aside, until they realize that it is too late; right when they only have a year or two to save for their retirement. Yes it happens, but you can avoid being part of the majority by preparing for your golden years at the soonest time possible. The earlier you invest, the bigger your retirement fund.
Financial management experts advise to save at least 10% of your monthly income and have it progress as you age. Let’s say, if you are in your 20s, you need to save 10% of your income; at least 20% if you are in your 30s and so on. If you can save at least 50% of your monthly income, you’ll be in a better financial position when you hit your 60s. However, if this will be a challenge, you can always start with 5% and gradually increase the percentage following the growth of your salary.
Set a goal for yourself when you start saving. By the time your savings reach about Php5, 000, you may try your hand at investing so you can maximize the returns. You can invest in insurance, stocks, or in mutual funds if managing stocks is not your forte. That’s the value of investing when you are still in your young; anything that you can earn from your investments can be automatically directed to your retirement fund.
Saving for retirement must not only be a priority, it should be a must. Whatever your age may be at present, it is never too early nor too late to save for your future. The lack of retirement preparedness could have its costly consequences in the future and you don’t want to be a burden to others. Health will be the biggest factor here. With this said, know that the money that you are saving will not be put to waste because you are investing on someone important, yourself.