This is one of the greatest days when you become a member of a major corporation. You carry bags full of student loans and the feeling of retirement as fairy tale country which will never come. Retirement is something that you talk about after drinking your coffee with your parents. However, you should create the goals of your saving because it is the best investment in your future that you could make. It is like planting the seed that will turn into a tall tree one day.
Actually, it may seem funny for you but mathematics fascinate when it is applied to the savings. You know, it looks like sleeping pills for you. If you invest 200$ every month in your investment portfolio since 22 years old taking into account 7% average annual returns you will receive more than 500,000$ by the age of 65. If you begin investing the same amount of money when you are 32 you will have about 230,000$. It means that the time is the main ingredient in this process and you have a huge vat of it. All you have to do is just waiting.
Moreover, probably your employer has 401(k) programs when you can put your money there and your employer will match your contribution. The decision not to take this program is similar to leaving the hundred-dollar bill on the street because it requires too much work from you. Just log on to your HR website and select the option of contributing at least up to the match percent. If there is no such program, create your own Roth IRA in Fidelity or Vanguard. Maybe, it may seem difficult but it is just a place where you will keep your investments.
It might be hard for you to estimate the sum of money that you should save to retire in the future. It is advised to have 80% of your salary every year. So, if your annual income is 50,000$, you will need the nest egg that will give you 40,000$ a year. According to 4% rule, it means that annually you can spend 4% of your total sum of investments. In order to have 40,000$ annually, you will need a million. It looks unreal but remember that 30 years of compounding turn molehills into mountains.
Do not think that the million-dollar goal can stop you from doing anything. All you need is to start the process and invest the minimum amount that you can afford (let it be 50$ per month). Every time you get a raise you should add 1% to the investment. You will not even notice the money you did not see in your bank account anyway. Do not forget to automate this process and pay yourself first.
Actually, it is quite hard to predict how your life will look like in 2060. Probably, you will travel around the whole world, buy a farm or maybe sit on a beach and read your favorite books. However, it does not matter what figure you will receive. What is more important is to establish the habit of creating the goal. Consider it as part of a game that gives you experience points in the background.