Now that I’m becoming an old person, I’ve naturally begun to seriously think about retirement and what that looks like for me. As someone who started a business by bootstrapping at 25, I cashed all of my piddly 401ks to give myself a little cushion while I was building the company (it was only about 7,000 dollars total), and I hadn’t really saved. This didn’t scare me at the time, though, because I had worked hard to pay off my student loans before leaving the traditional nine-to-five grind.
That said, it scares me now to think about growing old and not having enough of a safety net. It’s also scary to think about how many other non-planners my age are out there who haven’t saved anything or who are currently in debt.
Here are seven things that I recommend to get you on a somewhat responsible track before you get too old and the math doesn’t make as much sense.
1. Find a friend who can hook you up with a financial advisor.
Get them to help you make a plan. PAY THEM! It will be worth it.
2. Look at your credit.
Is it decent? If it isn’t, work on it, and stop being a slave to credit cards. Cut down on your overall material consumption.
3. Consider buying a property that makes sense for your budget.
If you’ve been living in a standard apartment for most of your adult life, consider a duplex that you can owner-occupy. Your tenants will essentially pay your mortgage for you and you will be gaining equity.
4. Get a Roth IRA started.
Roths are taxed right now, so when you cash it out, you get all the money. This is the only retirement account that does it that way.
5. Don’t pretend you know how to play the stock market.
You just don’t, I’m sorry. Trust your finance person or do 50 to 100 hours of research before you start separating your savings into strange stock stacks.
6. Automate your savings.
We all love automation—use it for your financial health. That finance human you find should be able to help you with this.
7. Forget about your savings promptly after setting it all up.
Don’t allow yourself to grow attachments to money you haven’t made yet or never see in your bank account. It’s pointless.
If you complete at least number four on this list, you’ve made a great step towards being a responsible old person. My more-old self is going to be so happy with me for doing all this, and your future self will be too!
If you need any recommendations on who to go to for financial advice, feel free to reach out to me: michelle@promotelocal.com. Don’t be embarrassed if you haven’t started saving. It’s not too late—yet. 😉