How to Set Up Savings Goals

According to the Employee Benefits Research Institute, more than half of workers have yet to figure out how much money they will need for retirement. But people who make—and stick to—a game plan say that life in retirement is actually better than they had expected!

Target Your (Retirement Savings) Mark.

On the whole, LearnVest recommends that people save 15% of their annual income, or their IRA/401(k) maximum, whichever comes first.  Remember, you need to save enough to have at least 70% of your annual pre-retirement income. First, figure out how big your retirement nest egg should be. Then, figure out what your income will be during retirement, based on your savings amount.

Know Your Needs And Retirement Goals.

Be aware of your own personal, family, and career goals in life. For example, if you are in a lower-wage profession, then you will probably need to save even more than 70% of the income you make while in the working world. Also remember that you’ll need to save more to account for inflation.

Jump In And Save. 

To find how much you have (and how much you can afford to save), track your bills and receipts to record your expenditures. Then, create a master budget!