10 Retirement Resolutions: Save First, Spend Second

US News and World Report had a little piece where they discussed some good New Year’s resolutions related to retirement and I thought that I’d put each of them through their paces. The seventh retirement resolution was to remember to save first, spend second.

“Pay yourself first, and find ways to invest automatically,” says Heather Dzielak, senior vice president of retirement income security ventures for Lincoln Financial Group. “Get in the discipline of setting aside money for your retirement.” Many companies will let you automatically deposit a portion of your paycheck into savings or investment accounts, so you can save it before you even get a chance to spend it. Martin Weiss, president of Weiss Research Inc., recommends prioritizing retirement even above your holiday spending. “I know it sounds a little bit selfish, but the holiday spending and undersaving is the big hit to the nest egg,” he says. “If we could save for a nest egg the same amount that we spend for gift giving during the holidays, that one change alone could have a very dramatic impact on the quality of our life during retirement.”

There isn’t that much more that can be said on the subject, saving is the key to a successful retirement. What’s interesting is what Martin Weiss said about how holiday spending is one of the biggest hits to the nest egg, so remember to contribute to your Roth IRA, 401(k)s, etc. before you go spend-crazy.

Source: US News and World Report