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This factor increases to 3x by 40, 6x by 50 and 8x by 60.
Are you on track?
If not, now is the time to revamp your savings, spending and retirement strategy.
The decisions I made years ago are coming back to haunt me.
While I still have 20 years until retirement, Im already playing catch up.
GOBankingRates sat down with Joe to discuss four things that caused him to getbehind in his retirement savings.
Before I knew it, I hadcredit card debt, a car loan, student loans and more.
I was lucky to break even.
The best way to avoid this money mistake is tobudget.
Countless budget apps connect to your bank account and automatically categorize your transactions.
Unfortunately, I didnt prioritize investing in my 20s.
However, delaying investing $250 per month until age 35 would result in just $565,000.
Compound interest is a powerful tool that many people miss out on.
Instead of putting money towardmy retirement goals, I was filling short-term and unnecessary needs, Joe explained.
Did I really need another golf club to add to my bag?
How about going out to eat when I had plenty of food in my fridge?
These small decisions added up and caused him to fall behind in his retirement savings.
Now, his money needs to work double-time to catch up.
To avoid lifestyle creep, make a list of the most important things to you.
This could be spending time with family, enjoying the outdoors or catching up over drinks with friends.
Find what is valuable to you and align your budget and spending with those goals.
Most people would gladly accept the money.
Employer matches on a401(k)work the same way.
He was throwing away free money.
I wish I knew the power of contributing tomy retirement accountto leverage the free match, he said.
To avoid this same problem, look at your retirement plan and figure out how your employer matches contributions.
Leveraging your employer match has the ability to double your retirement income.
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