jblomenberg16
Grandmaster
Lots of good advice thus far. Depending on your situation, many folks consider a 10-10-80 rule of thumb to be a effective plan. 10% in Savings (like retirement, etc.) 10% to the Church and/or Charity, Spend 80% on bills, taxes, living expenses, etc.
If you can swing it, putting more into savings now means you will have more later for retirement...so long as what you are investing in continues to have a positive rate of return, and that rate of return is greater than inflation (may be tough over the short term, but should be possible in the long term).
Also keep in mind the rule of 72. That says that it will take 72 / the interest rate # of years for your money to double.
To make the math easy, lets say you invest $1000 in a and investment making 6% every year (wouldn't that be nice!!!). In 12 years you'll have $2000. If you can keep that constant 6% ROR in 24 years you'd have $4000 if you keep reinvesting the interest you've earned, and $8000 in 36 years.
Like some of the others said, investing for retirement is a long term endeavor. Very few people get rich quick in the market, but a lot of people get poor quick by gambling with the market. If you can be slow and steady, you should be able to build up a nice nest egg.
The other thing to remember is that retirement income is going to be what you use to cover all of your living expenses. The lower your living expenses when you retire, the less you need and / or the more you can spend on "toys." One of the best ways to reduce your living expenses at the time of retirement is to have your mortgage, car payments, and credit cards paid off.
If you can swing it, putting more into savings now means you will have more later for retirement...so long as what you are investing in continues to have a positive rate of return, and that rate of return is greater than inflation (may be tough over the short term, but should be possible in the long term).
Also keep in mind the rule of 72. That says that it will take 72 / the interest rate # of years for your money to double.
To make the math easy, lets say you invest $1000 in a and investment making 6% every year (wouldn't that be nice!!!). In 12 years you'll have $2000. If you can keep that constant 6% ROR in 24 years you'd have $4000 if you keep reinvesting the interest you've earned, and $8000 in 36 years.
Like some of the others said, investing for retirement is a long term endeavor. Very few people get rich quick in the market, but a lot of people get poor quick by gambling with the market. If you can be slow and steady, you should be able to build up a nice nest egg.
The other thing to remember is that retirement income is going to be what you use to cover all of your living expenses. The lower your living expenses when you retire, the less you need and / or the more you can spend on "toys." One of the best ways to reduce your living expenses at the time of retirement is to have your mortgage, car payments, and credit cards paid off.