I wasn’t a big fan of chores growing up and as a result, I would leave my weekly responsibilities to the last minute. Every Sunday night was a mad dash to cut the grass, take out the garbage and “clean” my bedroom, all to earn my $5 allowance before the school week started again.
We’re all guilty of procrastination in some form or another, but when it comes to putting money away for retirement, we simply can’t afford to do so. The consequences of waiting to the last minute to complete my chores was a hectic Sunday but I was usually able to get everything done before bedtime. However, when it comes to retirement, delaying your savings plan can result in years of extra work, and that’s a price I’m not willing to pay.
A lot of people hate having debt and I’ve often heard statements such as “I’ll start saving once my mortgage is paid off.” But I know all too well that life gets in the way. I’m already hearing whispers of the larger home/yard my fiancée would like to have. Wouldn’t it be nice to have a cabin at the lake for the kids we don’t even have yet? I don’t want to wake up at 55 and realize, “hey, I wanted to retire at 60! How am I going to save enough money to last me until age 90?” It’s great to have a house and cottage to enjoy, but last time I checked, you can’t eat your porch.
We’ve all heard that compound interest can be your best friend and a contribution towards your savings today, even if comparatively small to what you could put away in the future, will have a huge impact on your retirement nest egg. Every day that savings are delayed increases the burden on one’s future self to make up the shortfall. I’m glad to have a financial plan in my corner allowing me to focus on both my short and long-term goals. When it comes to being prepared for retirement, I’d rather have my foot lightly on the brake as opposed to pinned to the gas when I’m 55.