Save for Retirement or Enjoy Life Now?

Save for Retirement or Enjoy Life Now?Save for Retirement or Enjoy Life Now?By: Kristie Lorette

It's typically a joke you hear your parents say: "We're spending your inheritance, but we're having fun while doing it!" Couples and individuals of all ages contemplate whether they should focus on putting away money for their retirement years or spending the money now on things they love doing, like traveling, charity or buying a dream home.

Finding the Balance


It's important to find the right balance between how much of your money you should be spending now to live your life and how much you should be putting away to live out your retirement years. This requires you to do some analyses, which includes reviewing the amount of money you make, how much you need to live post-retirement and what you envision your retirement years will look like in the near or far off future. While there are certainly ways to both enjoy your life now and ensure a secure tomorrow, the bottom line is that you have to save for your retirement years. Otherwise, how will you pay for the food on your table and the roof over your head when you are no longer able to work?

Calculating Your Retirement Needs


To figure out how much you need to put away for the future (so you know how much you can spend now), start with an online retirement calculator. Almost every personal financial website offers retirement calculators to help you estimate this amount of money. The calculator takes your income, future income requirements and the possible rate of return on funds invested to help you determine how much money you need to deposit today and ongoing into the future.

Spending and Saving Now

Once you know how much money you will need for the future, you can calculate what kind of money you have left to spend now. This is, of course, the money you have left after covering your basic living expenses for today. If you have $100 extra month to splurge, then spend it. You can also take that extra $100 that is left and sock it away in a savings account until in grows to the $1,200 or $2,500 you need to do the things you most want to do now, like taking that vacation of your dreams or buying that luxury item you've been coveting.

There is a balance between living life to the fullest and making sure that you can still live the lifestyle you are accustomed to as you head into your retirement years. Creating a personal budget can help you find this balance. If you don't feel like this is a challenge you can tackle on your own, then you also have the option to work with an accountant, financial planner or even an estate attorney to help you get your plan in order.

To learn how to free up cash to save more for retirement, including lowering your monthly mortgage payment and improving your credit score so you can save money on life's biggest purchases, visit Quizzle.com.

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