Create a Budget

This is your current budget, which takes into account all of your present-day income and expenses. While you should have some idea as to what you’ll need to save per month based on your retirement goals, you also need to make sure that you have that money to save. It’s a good idea to put retirement savings as a line item in your budget, just like food and shelter costs, so that you can set aside those funds every month.

Set Automatic Transfers

This is a tool you can set up between your checking account and your retirement account so you don’t forget to save. Set it up so that on the same day every month – maybe it’s the day you get paid – funds you’re earmarking for the future go from your bank account into your investments. By doing it this way, there’s no risk of you spending that money.

Create an Emergency Account

Having a separate emergency account – usually with about three to six months of salary saved up – will allow you to cover any unexpected costs without throwing your retirement plans out of whack.

Pay Down Debt

One goal for everyone should be to reach 65 debt-free. That includes credit card debt – and especially the high-interest reward card kind – car and mortgage loans, any student and other big loans. The reason is simple: you don’t want to be going into your non-earning years owing money.