Investing in Tomorrow: Planning for Retirement Today

We’ve talked about budgeting for the foreseeable future, but what about the far future? Retirement can seem like a distant dream, but here’s the thing—it’s coming faster than you think. The sooner you start planning, the easier it’ll be to enjoy your golden years without financial stress.

Why Start Now?

The magic of retirement savings lies in compound interest. It’s like planting a tree: the earlier you start, the more time it has to grow. Even small contributions in your 20s or 30s can snowball into a significant nest egg.

Where to Begin

• Take Advantage of a 401(k): If your employer offers one, start contributing—especially if there’s a match. That match is free money. Aim for at least 10–15% of your income if possible.
• Open an IRA: A Traditional IRA offers tax-deferred growth, while a Roth IRA gives you tax-free withdrawals.
• Consider HSAs: If you’re eligible, Health Savings Accounts (HSAs) provide a triple tax advantage and can act as a backup retirement fund.

Make Saving Easy

Set up automatic contributions so you don’t have to think about it. If you're having trouble creating spare cash to throw at retirement, you can use our budgeting app to quickly evaluate your spending at a glance. I should probably spend less on fast food.

And don’t worry if you can’t save a lot right away. Even $50 a month adds up over time. If you save $50 a month, after 40 years at a 6% annual interest rate compounded monthly, you’ll end up with approximately $99,574.

That’s nearly $100,000 from just $50 a month—a powerful example of how consistent saving and compound interest work together to grow your money over time. Now imagine you contributed more than $50 a month, and retirement is looking pretty good.