You did it. You graduated from high school, got yourself a degree from university, have a great job, and have created a solid foundation on which to begin your adult life. Or so you’d think. One of the biggest mistakes an adult can make is not preparing for their retirement. 

Though retirement may seem very far away, you should be aware of the necessary costs to upkeep and maintain your lifestyle, even far into the future. It may be difficult to imagine, but with so many sources of information available to you through books and the internet, you would have to be willfully ignorant to not be able to educate yourself. Beginning your retirement plans now is crucial, as once you have retired, you might not have access to the same sources of income you did before. Changes to your body and mind will need to be taken into consideration for a dependable, effective plan.

Key to success in this endeavor will be calculating your retirement savings. Yes, older pieces of advice and knowledge may be useful, but staying up to date with current information is recommended, as inflation and general cost of living isn’t the same with each passing year. What may have worked for your parents, grandparents, and maybe even your older siblings, might not work for you. 

We celebrate individuality and uniqueness, but must also remain alert to the potential threats in our lives. Being aware of your family’s medical history, for instance, could very well save your life, if not only your savings. Catching a disease in its earliest stages will help you save money as well as remain healthy into your old age. 

So how exactly does one calculate their retirement savings? If you want to be as accurate as possible, it is recommended to have an expenditure notebook, or some way of keeping track of how much you spend each month. This information will be absolutely crucial to understanding yourself and your needs, and may even help you create better spending habits that lead to greater savings. These days, there are plenty of apps and programs available on computers, laptops, and phones, that make it breathlessly easy to keep track of your spending, with some providing even greater insights and analysis on your spending. Was a majority of your money going to groceries? Maybe it’s worth checking out cheaper local options. Or perhaps too much was spent last month on drinking partying. Could your body use a well-earned breather from the debility of nightlife? 

Once you’ve got a good picture of how much you’re spending, you can cross-reference that with how much you’re making, and go from there. It’s always advised to overestimate yourself a little, so set a higher goal for yourself than necessary. This will give you some wiggle room as your plan evolves and grows with you. Planning a higher retirement goal for yourself might also prove to improve your work ethic, instilling vigilance and perseverance in your daily grind. 

Knowing how much you spend on monthly basis will let you easily see the amount spent in a quarterly, and yearly period. Based on the amount you’re making now – and assume at least a 2% raise in salary year-over-year – you can work backwards to see how much you’ll have to save per month to meet your needs in retirement. 

Start planning your retirement savings the first chance you get, as you’ll just be giving yourself a head start. The younger you are, the more time you’ll have to amend your plans based on how you’re doing, and it might even end up being an entirely stress-free job. Just these small considerations will let you live life the way you want to, for as long as you need.