10 Reasons Why You Need To Save for Retirement
1. Determine what "retirement" means to you
To me, it's not when I stop working, but when I reach a certain point in my career where it's not necessary to work. And when I can solely live off of my investments.
For you, it could mean at a certain age or specific timeline in your career.
2. It gives you a target to reach for
3. You can actually do mini-retirements where you can take a 1-6 month long vacation before your actual retirement
Mostly for entrepreneurs who run their own business.
Alternatively, you can ask to do this with your current employer at a certain time. Likely will be unpaid leave. But hey, at least you can have a mini-vacation while you are younger.
4. Peace of mind. You know you can fall back on your retirement savings if ever something goes south with your career
Ideally, you don't touch your retirement savings. But knowing it will be untouched for a few decades gives you some sense of clarity that "hey, I'm going to be relaxing way more later on, so might as well give all my brainpower now and build that while I still can:
5. It forces you to actively save your cash
6. Earlier you save, the higher potential for your savings to compound
7. Gives you a deadline on when you can stop working (if you want)
Some people excel when there is a deadline. This one might be a motivator for some.
8. Gives perspective on your overall career
Are you going to stick with your current one until the deadline? will you start multiple ventures on your own?
9. Allows you to live with less (with the money sent that you cannot touch)
Would you rather buy XYZ, or invest the money to enjoy more buying power later? Or do you really need to buy XYZ?
10. Save on taxes
When you contribute to your retirement plan, I believe this allows you to save on that year's taxes as well. Win-Win!
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