Saving for retirement may seem like a daunting task, especially if you have a goal of say $250,000 or $500,000. Here’s a tip I use to help keep those big numbers from seeming so intimidating and paralyzing.
In today’s episode of Your Money Minute with Tracy Stewart, CPA, I want to talk about saving for retirement by breaking up bigger goals into smaller chunks. It’s easy to get stunned when you think about the bigger picture numbers involved in your retirement, but I’d encourage you to set smaller goals for yourself and look at the little things involved with helping you get there.
Would you like to save $50,000 over the next five years? Breaking this goal into smaller, bite-sized contribution amounts will make this more tangible and attainable. What if you were able to set aside $200 each week? Could you do that — could you get close?
The secret is in making your big, audacious goals feel reachable by looking at the micro level contributions needed to make it happen. Remember, there’s compound interest, interest-on-interest and many ways for you to grow your nest egg by stowing away smaller amounts over time.
Financial independence is unbelievably liberating. I want you to have financial security for the rest of your life, and it’s why getting focused on your retirement will help to give you peace for your many tomorrows.
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