Every day you make choices that impact your retirement opportunities. Taking steps to identify unnecessary spending and saving as little as $5 per day could lead to big savings over time.
Here’s the breakdown to put it into perspective:
If you invest $5 per day, you could save $35 per week for retirement. If your investment earned an average annual rate of return of 6%:
- In 20 years you would have $68,977
- In 30 years you would have $148,213
- In 40 years you would have $290,197
As you can see, how you choose to live your life impacts your financial security – and it doesn’t take big changes. For a secure future, take a close look at the choices you make. Small, positive changes could significantly improve your finances in the future. Find other savings goals with our savings calculator.
Not ready to give up the daily latte? Here is a list of other, larger changes you can make:
You are your most valuable asset. If you are not satisfied with your responsibilities, salary, or career path, it’s never too late to refresh skills and gain training for a new career. In today’s uncertain economy, keep in mind that a long period of unemployment could threaten your financial security. Keep your résumé updated as you gain skills and experience. Consider joining a professional network or LinkedIn to connect with individuals in your field and keep pace with innovations. It’s important to keep yourself skilled and relevant to remain a valuable asset to your company.
With the abundance and accessibility of credit cards, it’s easy to buy on credit and pay only the minimum each month. Soon, you’re paying more in interest than your purchase actually cost! Over time, credit card debt can have a devastating impact on your finances, credit score, and ability to recover. Stop the cycle and work towards paying off your balances.
Purchasing a home is the single largest purchase you’ll likely ever make, and it’s essential to save for surprise expenses that come with home ownership. The square footage of the average American home has increased over the past several decades as well as the cost. If your mortgage, taxes, and maintenance expenses deplete a large portion of your income, consider downsizing. What you save in housing costs could be significant and help improve your financial standing in the future.
It’s estimated you’ll need around 75-85% of your working income during retirement. If your employer offers a retirement plan, participate and contribute – it’s like missing out on free money if you don’t! Plus, the earlier you start, the more you will have by the time you retire. Check out this retirement planner calculator to find out what it takes to work towards a secure retirement.
Unfortunately, accidents happen. Not having adequate insurance could lead to financial ruin. Protect yourself and your assets by ensuring you are adequately covered. If you are uncertain about insuring your assets, contact the Hills Insurance Agency and they will be glad to assist you!
Most days you have small financial choices to make, but some days there are life events that require more thought and preparation. Hills Bank understands that special financial considerations need to be addressed for each circumstance, and we have the experience, personnel, and products to guide you toward your desired financial future. Learn more about the resources and products available on HillsBank.com.
Do you have additional tips for small steps you take to ensure a solid financial future? We’d love to hear them in the comments below.*Investment and Insurance products are not a deposit, not FDIC insured, not insured by any federal government agency, carry no bank guarantee, and may go down in value.