We are now moving into the items that you don’t have 100% control over but do have a say in. Your earnings power is tied to a number of things. Your education level, career field, and region frequently have a say in your earnings power. We find many potential retirement savers in 401K & 403B plans talk about the reasons why they can’t save. One of those might be that this is your first job and you just don’t earn that much.
While this maybe true, keep in mind that as you reach into your peak earnings years (frequently your late 40’s to mid-50’s), those also align with your peak spending years. Forming good savings habits early will help to increase those contributions as you reach peak earnings. If you have the ability to go for advanced certifications or training in your field, those are concrete ways you can improve your earnings potential now.
Don’t forget, once those student loans are paid off, now you might have a home purchase, start of a family, saving for dependents college, emergency spending accounts, and a whole host of items that will keep pulling on your pocketbook. #401k, #403b #457b