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Benchmark goals to consider while creating your savings

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Posted at 6:56 AM, Jan 28, 2020
and last updated 2020-01-28 08:56:28-05

TUCSON, Ariz. — Your financial situation is different from everyone else's, so your saving goals are going to be unique. But Tiana Ronstadt with Power Women Investing said, there are a couple of things you can do to try to stay on track throughout your life.

"I can't buy 20 years back for the 50 year old so I need you to save as much as you possibly can early," said Ronstadt.

She said one of the most important things you can start saving for is your retirement. But with that, she finds when people are younger, we don't save as much as we really need to.

"I find a lot of folks are either saving way too much and so they're not enjoying the life that they have today or they're definitely not saving enough," said Ronstadt.

The closer you are to retirement, the more your need saved. If you are in your younger years, and your budget can allow it, Ronstadt said a good benchmark is to save about 20 to 25-percent.

"The greatest thing in our plan is time, time is more are our most valuable asset. So if I can pinpoint that early money of 20% going in and I have been in for 30 years that's the magic of compounding interest," said Ronstadt.

Another way is to have a 401(k). And if your employer has a matching plan, to save to that particular match percentage.

"Because that money is free I put in one they put in one I put in two they put in to save to the match figure out the rest of your budget save to the match," said Ronstadt.

And lastly, if you are able, simply save as much as you possibly can.

"If you really can do it, go to the max. Swing for the fences because if you can save as much as you possibly can save early you will not have to save later," said Ronstadt.