Savings Plans For Those Who Start Work

3 Simple Ways to Start Your Saving Plan Now

As an employee, you surely don't think that you are going to work forever. Planning for a retirement is a must and, yes, it definitely takes money. In order to have a safe, happy, and relaxing retirement you need to start a saving plan and you need to start now, even if you just started to work.  

Retirement Fact 

• ·         Statistics Canada reported that 45% of Canadians planned to retire before reaches the age of 65
• ·         In 2013, the average retirement age for men in the US is 63.9 while the woman is at 61.9.
• ·    The retirement age in Greece is the longest reaching 67 years of age while Sweden is the lowest reaching 61 years of age.

How to start your Saving Plan – by the math

Remember that there is the word "plan" here. You cannot expect to just intend to have savings, but you need to plan it. Here is how you can start your own saving plan right at this moment.

1.        Set your goals for living expenses. Let say that you plan on living with $25,000 annually. According to U.S. News & World Report there is this 4 percent rule where you divide the figure of $25,000 with 4 percent and thus, you will need a total of $625,000 in your saving account.
2.        The amount of savings that you need to make according to your age. A simple but effective way of calculating your saving plan according to your age has been published by The New York Times. It is said that at least you must save half a year's worth of your salary by the time you reach 30, two times your salary by 40 and by the age of 50 and 60, you need to save four times and six times of your salary, respectively.
3. .       Start small. First, you need to calculate how big of a portion you want to spend for your saving plan. The safest portion is 10 percent of your entire salary. If your 10 percent amounted $400, in 12 months you'll get $4,800 which will bring you to $24,000 in 5 years.

Why most People Fail – emotionally speaking

The saving plan that people made is mostly correct. The problem is not on the plan, but more to the individual’s emotional state, such as peer pressure.

People are most likely to match their peers’ lifestyle in terms of expenses. Keep up with that kind of lifestyle and you will surely break your bank, lose your saving plan and ended up with no money at all during your retirement age.

It is never easy to stick to your saving plan for retirement but do keep in mind that a person cannot expect a pity of someone else, even if you are at your retirement age. You need to be able to stand on your own two feet and that is why a commitment to your saving plan is worth all the hard work.