You can do your own retirement calculation (Principal = Interest x Rate x Time) or use a handy calculator like this. Hopefully your employer will match your 401K contributions or invest in a highly profitable mutual find. Or maybe you'll win the lottery. The point is not to sound hopeless; the point is to get you to start saving now.
Turns out I'm the worst at money management. I rarely create budgets, and I love to shop. However, if I were good at these things, here is what I would do:
1. Create weekly and monthly budgets and stick to them. Don't buy anything you haven't budgeted for. As you get more practice at creating budgets, you'll get better at predicting how much you'll realistically spend in certain areas. For example, as much as you want to only spend $80/month on groceries, you'll probably spend more.
2. As you make purchases, immediately record each transaction on a ledger of some sort. This will make spending more painful, which is the point. This will also ensure that your checking account balance never dips below zero.
3. Resolve to give up one thing you spend money on that you absolutely don't need. I've learned that I can't do these things in moderation, it has to be all or nothing. So I am giving up all vending machine/convenience store trips for snacks during school or work. I have to prepare ahead and buy snacks at the grocery store if I want them. This will save me $520 in 2014.
4. If you find something you absolutely want (THOSE JEANS) which you haven't budgeted for, wait two weeks to buy it. If you still dream about it after two weeks, see if it can fit in your budget. Four times out of five you will have forgotten about it by then.
5. Make saving a game. If you're able to save a certain amount by a certain time, reward yo'self.
6. Don't buy stuff you can't afford.
These are things you probably already know, but I always need reminders. All my best for your new goals/new self in the New Year.
Lyndsi
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