“Life’s a party! It’s time to have fun. I’ll think about saving much later…”

We all know that if you’ve just started working, your hard-earned salary normally disappears the moment it’s credited to your account. The rent, cable, your mobile bill, the amount you borrowed from your friends last month, this month’s partying and treating your girlfriend to a nice evening (not the roadside joint which you and your college friends used to hang out at) all suck your salary dry.

Now, if you think it through and start believing that you’re bit smarter than the rest of us, you might cut a few corners and save a bit from the tiny salary you earn. It might not seem like a lot but believe me, wait till you see the same money when you hit 65!

Why should I save now? Why not later on…

Before knowing when to start saving, it’s better to know why we need to start saving:

1. Old age sucks. Face it, you grow old, your body starts failing and medical bills start increasing.
2. You’re most probably going to outlive your parents. Which means you’ll spend more years after retirement without a job than with one.
3. Developed countries have lower birthrates. Lower birthrates mean less people entering the workforce and contributing to the Government’s pension plans. But better medical facilities mean more people are living longer. This is putting more and more stress on the Government’s ability to give you a decent pension. Which means lower pensions when you retire.

If you put two and two together – once you retire, the Government will not be able to financially take care of you completely. You will need another source of income. So when should you start?

The answer is NOW!

Smart guys may sacrifice a few costly dinners and expensive gadgets early on but definitely know that putting aside a sum of money every month and investing it will give them a much cozier retirement. To save individually, there are many Retirement Savings Solutions. They include:

• Tax Free Savings Accounts (TSFAs)
• Registered Retirement Savings Plans (RRSPs)
• Workplace Pension and Savings Plans

By investing systematically in these schemes, you allow yourself the ability to prepare yourself for the future. Plus, many of these help save tax in the long-run.

How do I start?

The best way to get started is to:

1. Get a Financial Advisor – When you’re sick, you go to the doctor. When in trouble, you find a lawyer. For financial advice – go to a financial advisor. They will help set you up for life!
2. Save a part of your yearly bonus and invest it
3. Make investments systematically via a direct debit from your account at the start of the month. If you don’t see the money, you’ll adjust the lifestyle to the salary that’s left behind after your monthly investment

A comfortable retirement means much more than you think. It means you can continue with your lifestyle while not working anymore. It means being able to enjoy the good life till the very end…