Find out what these savers have sacrificed in the name of a sound financial future and see what the experts say actually makes a difference in meeting your long-term savings goals like early retirement.
When you get an unexpected bonus, your first instinct is probably to spend it on a splurge you wouldn’t normally pay for. However, Jamie Hopkins, director of retirement research at Carson Group, said it’s important to change this mindset to save for retirement. He believes the key to retirement planning is to automate your contributions.
“This means implementing strategies like sending bonus monies straight toward retirement and setting up automatic 401(k) contributions at work,” said Hopkins. “The more we can automate our savings the better off we are because we do not feel the pain of losing out on short-term consumption today. If every time I think about saving for retirement I have to make a conscious decision to forgo a current need, it will be much more difficult.”