Living in a consumer-driven society, we are constantly overwhelmed with messages convincing us that we need more of everything. These messages, whether they come from the television, magazines, billboards or display windows, endorse the idea of consumerism.
Along with these urges to consume more and more, the promise of instant gratification makes it difficult to stay disciplined financially. Even so, many of us harbor grander, more impactful financial goals, sometimes sacrificing our immediate wants to achieve long-term pursuits like buying a house, a car, or other significant investments.
However, being the consumers that we are, as soon as we achieve these financial landmarks, we quickly begin thinking about upgrading – a bigger house, a better car, and so on. It is in this pursuit of keeping up appearances that we lose sight of our long-term future, particularly as it pertains to the next 30 to 40 years. Retirement, while it may seem far off, catches up sooner than expected.
Here are five reasons to consider investing in your future rather than merely enhancing your current lifestyle:
1. PREPARE FOR HEALTH CARE EXPENSES:
Health insurance is a lifeline we all need throughout our lives. As we age, we invariably become more susceptible to health issues, which could lead to considerable costs for treatments, surgeries, or long-term care. By investing in your retirement and several life and health insurance policies now, you can better prepare for future health-related expenses.
2. SECURE YOUR LOVED ONES’ FUTURE:
While retirement should ideally be a time to relax, life often takes unexpected turns, and we may not get as much time in retirement as we wish for. Unexpected costs like funeral and estate expenses can burden loved ones left behind. Investing in your future safeguards your family’s financial wellbeing.
3. Savor YOUR GOLDEN YEARS:
The majority of our lives are spent working until we earn the rest during retirement. This break gives many people the chance to finally enjoy hobbies and activities they couldn’t fit into their working years. By investing in your retirement, you can ensure that you live out these years in the style that you’ve dreamt of.
4. TIME IS ON YOUR SIDE:
Investments need time to grow. Starting to invest early in life allows for more risk-taking, which can result in higher returns. Planning for your future earlier helps soften any potential financial hits, letting your investments recover over time, ultimately allowing your retirement fund to flourish.
5. LOWER YOUR TAX EARNINGS:
Investing in a traditional 401(k) plan lets you allot a portion of your salary pre-tax. While your take-home salary might be less, the amount you contribute to your retirement affects taxes less significantly, hence reducing your total payable tax.
Pouring wealth into present upgrades might seem more appealing given the upsurge in living expenses, which makes saving that extra bit of money even more challenging. However, neglecting to plan for your future can have dire consequences. Rather than spending on instant upgrades, a more prudent strategy is planning for yourself and your loved ones’ future by investing for the long-term.
Consider how you might continue to live comfortably now without overspending while also ensuring a stable financial future. If you are unsure how to begin, SmartAsset.com provides the tools and advice you need to start investing wisely.
