Irrespective of your family financial burdens, you can save a lot of money and get yourself ready for retirement. Krista and Chris is a good example of this. With a family of six consisting of four children within the age bracket of 11 and below, the couple in their early forties sucked away up to $1 million in their retirement account. Below are some simple guides on how they achieved this:
- Save regularly
Saving regularly will help you to achieve financial fortune. The couple above had wanted to change their contributions when they had three children but they feel that they would regret it if they did anything differently. Consistency got them to where they are financially and in retirement saving.
- Set Goals
Krista began early in putting money in her retirement savings when she landed her fulltime job. She also heeded her dad’s advice and opened an IRA. Chris on the other hand took advantage of his employer’s 401(k) plan. Compounding sets in when you start saving early. The couple also used separate savings account for things like Christmas gift and vacations.
- Keep it simple
You can get rich without knowing all the rudiments and rules of investing. Krista pointed out that she does not play the market. She simply saves as much as she can. The couple built their financial portfolio on exchange traded funds and mutual funds. By leveraging their 401(k), they set financial goals and achieve them ensuring that their account balance grows. Katherine Carman, an economist at the Rand Corp. pointed out that an effective way to reach financial heights is by setting out rules for yourself.