Recently I was asked to share my thoughts on the topic of saving for retirement and what type of questions I receive during pension counseling sessions. I reflected on the experiences that brought me to my current role as a Pension Counselor with the Pension Boards-UCC.
While working at a credit union in the collections department (Yikes, I know), the idea of financial wellness sparked my interest. Those conversations with members dealing with challenging financial issues had me questioning my own financial wellness.
Then came the more specific questions:
Navigating the balance between financial obligations, savings, and wellbeing is a common challenge. A practical approach involves creating a realistic budget that aligns with your cash flow, ensuring you understand where your money comes from and where it goes.
Tracking your expenses meticulously can provide a clear picture of your financial situation, allowing you to identify areas where you can cut back. Small changes, like reducing discretionary spending and setting up automatic savings, can make a significant difference over time. Remember, the key is to start with a clear understanding of your current financial state and take actionable steps toward saving, even if they are incremental.
“Saving money is a journey that starts with a single step, or a single dollar.”
The knowledge I have gained over my years in the financial industry has been a huge benefit to me and it is a tool I use in my daily conversations with Pension Boards’ members. The ever-changing financial landscape can be overwhelming and downright scary, but it should not be shelved for another day. The fact is, “another day” will be here before you know it.
So, how can you save and when should you start? First know that it is never too late to start saving. It is a simple yet hard truth: saving money is a journey that starts with a single step, or a single dollar.
The power of saving lies not just in the amount, but in the time you give your money to grow. Starting with something as small as $7 a week can seem insignificant, but over time, it adds up. With the magic of compounding interest, those small, consistent savings can grow into a substantial nest egg. It's never too late to start saving; the key is to begin and to stay consistent.
Also, if you make pre-tax contributions, you are also reducing your current taxable obligation. Whether you're just starting your career or nearing retirement, every bit you save is a step toward financial security. It's about making smart choices. Consider swapping out that coffee shop visit for a home-brewed cup of coffee, and watch those savings accumulate from this small action step. Remember, it's not just about the amount you save, but also the financial habits you develop along the way. Your money can grow if your financial habits change. Start small, but most importantly, start now. Your future self will thank you.
Financial planning can be daunting, but taking proactive steps now can lead to a more secure and enjoyable retirement. Ultimately, investing in yourself and your financial future requires a balance of saving, learning, and exploring the tools available to you.
If you're looking for more detailed steps, call the Pension Boards to get connected with one of our with one of our Member Services representatives, and visit our Financial Wellness web page, check out available resources, register for one of our upcoming webinars, and get started on your savings journey.
