Wanting a New Year’s Resolution? Save for retirement: financial coach shares tips on how

In 2022, only about 46% of households reported any savings in retirement accounts. 

With New Year’s fast approaching, what better resolution to set for yourself than to get started on saving for retirement?

Financial coach Jeannie Dougherty shares valuable insights on how to embark on this crucial journey.

The first step, she says, is to understand what your goal retirement would look like. 

“If you want to get started on your retirement savings, let’s start with your vision of what you  would like for your retirement. Having enough money and spending how you want to is an excellent start to envisioning a comfortable retirement,” Dougherty states.

The next step is to analyze your spending habits and find where you could start putting money away into savings.

“Looking at your spending habits now is essential to see where you could start putting some money away. You could save 10% of every dollar in a 401K, a Real Estate Savings account, or an investment brokerage account. If that number seems too high, you could pick a dollar amount as low as $25 per month,” she says.

A crucial part of saving for retirement is to actually save that money and to not take it out and spend it beforehand.

Dougherty shares, “Once you start saving, the next step is to ensure you “don’t do early withdrawals” unless needed. You would focus on your monthly spending plan and ensure you have your first month of expenses in your checking account in case of unplanned expenses. This way, you are less likely to dip into your savings if at least one month of costs are covered. Three and six-month spending plans can be put in a high-yield savings account where you can earn 3% interest. Check your statements online and see how well you are doing. That will help you keep up the good habits.”

Dougherty’s holistic approach to finance, rooted in her extensive background as a certified money coach, counselor, mental fitness coach, and speaker, offers a unique perspective. She holds a Master’s degree in Counseling from Ottawa University and certification from the Money Coaching Institute. Her work spans assisting businesses, individuals, and couples in finding more effective ways to achieve their financial objectives.

Starting retirement savings early is crucial. The sooner you begin, the more time your money has to grow, making the task less daunting as you get older. Dougherty’s advice underscores the importance of a well-thought-out plan, disciplined saving, and a long-term view of financial health. This New Year, taking the step to secure your retirement could be one of the most rewarding resolutions you make.

Beginning your retirement savings journey as a New Year’s resolution is not just a financially prudent decision but also a step towards securing a future that aligns with your personal vision of comfort and stability. Jeannie Dougherty’s expert guidance emphasizes the importance of a clear retirement vision, disciplined spending habits, and the wisdom of starting early. By setting realistic goals, whether it’s saving a percentage of your income or a fixed monthly amount, and by avoiding the pitfalls of early withdrawals, you can steadily build a nest egg that will support your future aspirations. Dougherty’s holistic approach, grounded in her extensive expertise, serves as a beacon for those navigating the often complex waters of personal finance. As you step into the New Year, remember that the journey to a secure retirement is a marathon, not a sprint, and starting now, regardless of your age, is the key to a more secure and fulfilling future. This resolution to start saving for retirement could indeed be the most impactful commitment you make for your long-term well-being.