The clock is always ticking, and it’s never too soon to begin planning for your financial future. Retirement planning is a must, and here are a few tips to help in the process.

Retirement Planning Tip #1: Banking as a Service (BaaS)

“What is BaaS?” you may be wondering.

Well, it’s an umbrella term for additional services that a financial institution provides. These are extra services offered by third parties that your bank might not offer as a part of their standard services. Working from the cloud, a financial services institution like Evolve Bank & Trust  combines the expertise of a bank and the power of technology. Some of their services include personal and business loans, CDs and IRAs, credit, and trusts. In planning for retirement, you must explore resources outside of the traditional ones.

Retirement Planning Tip #2: Percentage-Based Money Management

Managing money can be challenging for some people, and you may be one of them. However, some clever people have devised specific formulae for situations like yours. One of the most commonly used is the “50-30-20” rule. Following this rule, you spend 50% of your money on what you need, including rent, gas, food, etc. Then you spend 30% of your money on things you want, such as new shoes. Then the remaining 20% should go into savings.

Retirement Planning Tip #3: Manage Your Income with Side Jobs

Everyone talks about getting side jobs or side hustles as if finding one is an effortless feat. Newsflash- It is more challenging than you might think starting out. Because of familiarity, finding a side hustle related to your current job or hobby is usually the wisest route initially. Nevertheless, finding something that pays well and that you enjoy is not always easy. However, some common jobs to consider are freelance writing, affiliate marketing, and remote jobs with specialist skills that you may currently have. You can also make passive income by selling personal possessions you no longer use, i.e., clothes or jewelry, renting out space, such as your yard, a room, or the garage.

Retirement Planning Tip #4: Save and Pay Into Pensions/401K

Of course, it’s easy to say, “Save your money.” But it is more complex than that. It would be best if you had savings, yes. Yet life gets in the way, and costs spiral out of control. Additionally, money loses value, so mattress stuffing isn’t really a good idea. The solution is pensions. Pensions work by taking what you pay into them and investing it. As a result, your money works for you, and your savings pot grows to beat inflation. 

Retirement Planning Tip #5: Calculate How Much You Need

One of the main reasons you need to save is to ensure you have enough for retirement. But it can be tricky to know how much that is. Many variables and economic factors are at play, and you can’t beat them all. However, most experts agree that you need specific amounts at certain ages. For example, you should aim to have one and a half times your annual income saved at 35 years old. And aim for between three and six times that amount by the time you are 50 or over.