Think of a nest egg as a piggy bank for grown-ups that you get to crack open when you retire or reach a specific financial goal. Typically, your nest egg is money you want to protect at all costs as it represents the work you’ve put into saving for the future. To meet your future financial goals, we’ve put together our top savings strategies.
The first step to building a successful nest egg is saving money, and the best way to save money is by creating a budget. Budgeting is a great habit to establish early on in life. Having a budget keeps your finances in control, creates wiggle room, and ensures you have money left over as you save for the future.
Debt can be a major barrier in building a nest egg, especially when it’s high interest. Prioritizing paying off your debt will save money on interest, reduce stress, and enable you to put more money into your savings. We suggest adding debt payments to your monthly budget to ensure you stay on track.
Once you’ve created a budget, built a debt-repayment plan, and identified areas where you can cut back, it’s time to start saving.
We recommend these three steps to start saving for the future:
Time is a powerful asset when it comes to saving for retirement. The earlier your start investing, the longer your money has to grow. This is due to compound interest, which is when you earn interest on both the money you’ve saved and the interest you earn.
There are many investment options for retirement, and the general rule of thumb is the higher the risk, the higher the potential gains.
These are the most popular investment strategies:
Building a nest egg takes time and work, but it’s a worthwhile investment to be financially secure when you retire. By creating a budget, saving smartly, maximizing Social Security benefits, and utilizing the power of compound growth, you can build a strong financial foundation for the years ahead. The key is to start early and be consistent in your savings and investment habits.
If you like the sound of switching to a high-yield savings account, opening an IRA, or just need some financial guidance, we’ll set you up with the tools to start saving for the future. Apply online, stop by one of our branches, or call 833-2DEXSTA.