For Andrew Corbman, the best advice his father gave him was to save, not for a rainy day, but for his retirement. Having learned about managing his personal finances as early as his teenage years from his father, when he first started earning from part-time jobs, he has learned the importance and value of saving. He advises everyone to do the same—to save for their retirement.
There are several ways that you can do this. First, and the most common of all, is to deposit a specific amount every month to a savings account that you opened specifically for your retirement funds. Your retirement funds should be in a separate bank account for two reasons: first, so you won’t have a difficult time keeping track of your actual savings, and secondly, so you won’t be tempted to pull out your ATM card and withdraw from it whenever you need cash for something. (It’s best to leave the ATM card for your retirement funds at home.)
Understandably, there would be days when your hectic schedule won’t permit a quick trip to the bank. For days like this, stash your savings in a ‘Retirement Jar’. This may seem prosaic, even ancient, but never dismiss the convenience of a savings jar! Once you’ve placed the money inside the jar, keep the jar in a safe and out-of-sight place to avoid the temptation of getting money when you run out of cash.
There are two things that you can actually learn from having a savings jar at home. First, you will learn about discipline—particularly in the areas of consistency and resisting the temptation to take money from the jar. Next, you will learn about accountability. Accountability is more of an internal check because no one knows you have that jar and no one would really know whether or not you put your regular savings in there or you took money out. It’s all about you—your personal accountability.
One other tip Andrew Corbman shares is to allocate a reasonable amount for your nest egg. Do not be in such a rush to accumulate a considerable amount within a short period of time, so much so that you reserve an amount that you know you can’t afford. Set a realistic amount and stick to it.