You hear it all the time, “All you have to do is save $1 million dollars by the time you retire and you will be able to live quite comfortably for many, many years.” Sure, but in reality, how many people are actually able to save an entire $1 million? Not many. Which is too bad because as people are living longer, their meek savings and social security benefits are not allowing them to live their retirement years the way they had imagined. If you want to maintain your standard of living and be able to pay for unexpected health care costs, aiming to save $1 million is your best bet.
Here are five tips to help you save $1 million by the time you retire.
1. Start Saving Early
Obviously the earlier you start to put your money away the more you can take advantage of compounding interest which can be your biggest asset. The longer you wait to try and save this kind of money the more you will have to put into savings and the less you’ll be able to take advantage of compounded earnings.