Saving for retirement during your 20s might be too early for some. But, no matter how far you are in your financial journey, the key is to start as early as you can.

You can achieve comfortable retirement life by having a solid financial planning.

Do not know how to start creating your retirement strategy? Worry not. There are several financial tips and guides available to aid you in your retirement planning.

To get you started, here’s a simple guide on how to start funding your retirement plan.

Start saving early

The first step that you must take when planning your retirement is by saving early.

As soon as you receive your first paycheck, allot a percentage to your savings. If you do not know how much you will allot, you can follow the 50-30-20 rule. This budget rule allot 50% of your income to your needs, 30% to your wants, and 20% to your savings. You can look for other budgeting style if you are not comfortable with this one.

To know other style of budgeting, you can search more at

Ensure that as your income increases, your savings should increase, too. This way, you can build your savings quickly.

Be aggressive with investments

Having any kind of investment can help you grow your money. But before you invest your money, make sure to learn the investment vehicle you are eyeing. Know the pros and cons of investing in it. So, you will know what you are getting into.

If you are willing to deal with risks, put a higher percentage of your investment in stocks. On the other hand, if you are not the aggressive type of investor, you can opt to invest in mutual funds or bonds.

Remember, the key in investing is to diversify. Do not invest your money in one investment vehicle. To potentially grow your money, invest at least 1 to 2 different investment product.

Furthermore, you can seek the help of a financial advisor to help you in allocating your investment properly. So, you can create a balanced investment portfolio.

Have a retirement account

When creating your retirement plan, consider having a retirement account. This way, you can avoid spending you allotted money on it.

You can opt for the 401(k), which is commonly offered by many employers. Ask your employer about your options.

Build an emergency fund

Before you start rolling out plans with your retirement, build an emergency fund first. This fund will save you from any unexpected expenses like job loss or medical bills.

Ideally, your emergency fund should contain at least 3 months or up to 6 months’ worth of your living expenses or income. For you not to spend your emergency fund, you must set up a savings account and automatically fund it every payday.

Bottom line

In retirement, the earlier you start, the less money you will contribute. So, it is recommended to start planning your retirement today.

By following the things mentioned above, you can comfortably spend your retirement years with peace of mind.

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