How to build wealth for retirement

We hear stories all the time of people retiring and having very little money to continue on with their lives. In most cases your pension fund will not be enough for you to live a very comfortable life but it will be enough for you to survive. Well today is your lucky day because I am going to outline how you can successfully retire with enough money in the bank. There are many ways in which this goal can be achieved but I have decided to focus on the aspect of saving which I believe is very ideal. Saving is a very powerful tool that many people over look and truthfully speaking it is also the easiest and safest way to accumulate wealth. Nowadays modern society is interested in things that bring in money within a short time period. Wealth isn't meant to come easy because if it was like that then pretty much everyone would be rich, wealth normally takes years of hard work to accumulate and anybody can do this as long as they have a reasonable salary.

• Saving has no age restrictions, so its never too early nor too late to save. Its actually very beneficial to start saving at an early age even if you are still in high school. It may not be much but trust me it will go along way to accumulating your future wealth. Even if you are only able to save $30 a month during your high school years, that will mean that at the end of your high school period you would have accumulated about $1500.

• If you are an adult and you have a job that means that you have a salary. Always aim to save no less than 10% of your salary, the higher the percentage the better chance of you retiring with a large sum of money. For example if you earn about ($90000 a year before tax) and decide to save about 10% of your (monthly salary of $7500) that will calculate to $750 in monthly savings. So at the end of the year you would have accumulated $9000.

• Saving alone wont get you to the target unless you save a large sum every year. There are two reliable ways of overcoming this obstacle. One method is to put your money into a savings account that attracts compound interest. For example if you put $100000 of your savings into an account that attracts compound interest of 1% with monthly deposits of $750, you will have $449952 at the end of 30 years. Another method is to invest your money into a fixed asset such as a house or an apartment, which you can then put up for rent and have a constant income on the side.

Saving is far from easy but I do encourage everyone reading this article to try it, you will find it to be very rewarding. At first it may be difficult but once you get into the routine it will come naturally to you. To increase the amount you save every month try not to spend your money on unnecessary things. Start saving now and spend in the future!