Balancing life as a teacher can be tricky. The new school year beginning brings many challenges when it comes to planning lessons, setting up the classroom, and getting organized in order to have successful year. It is important to not forget about your finances and begin to plan for the future at the start of the school year as well.
While starting the school year is a wonderful thing, it is very important it is also to start working on your plans for your financial future. It is never too late to start saving for the future, but it is never to early to start saving either. Listed below are five great tips to getting your retirement savings plan started.
Start Investing in a 403(b) Plan
Majority of educators in the United States will be provided with a pension for their retirement. While this pension provides a decent amount of guaranteed income, it is really a great building block for you to begin investing for retirement. Another great option for funding your retirement is a 403(b) plan.
With a 403(b) plan, you are paying into an account where the funds are tax-deferred and will grow this way until you decide to withdraw these funds during retirement. Contributing to a 403(b) plan regularly is a great and effective way to grow your savings plan throughout the years.
Create an Emergency Savings Plan
Another great way to save money for your retirement and in general is a rainy day or emergency fund. Having a fund full of extra money for unexpected events id a great idea, as you never know when something could go wrong. Having a rainy-day fund available allows you to not have to pull money from your retirement accounts early and face high penalty fees.
Start a Student Loan Debt Fund
Student loan debt is something many educators face. As an educator, you may be eligible for a loan forgiveness program or be given the change to lower your interest rate.
- Educators that work for low-income school districts for at least five years or for an educational service agency are eligible to apply for the Teacher Loan Forgiveness Program
Develop a Budget
At many times, it may seem like you do not have enough income to cover all of your expenses while also living your life. One great way to make sure you can pay for everything financially in your life is to create a budget. Budgeting should not be scary or stressful, in fact it should alleviate a lot of your stress if it is created properly.
Invest Over Time in Your Retirement Plans
While you spend time working towards all of your other financial goals, you should also think about investing more into your retirement savings accounts. Increasing the amount of contributions you make to your retirement account is a great way to get your savings and investments up.
Let National Educational Services Help You Reach Financial Success
Starting the school year can be both exciting and stressful, and planning for the future can feel the same. It is never too early to start saving for retirement, so do not put it off any longer! Contact an advisor at National Educational Services today to discuss what you can do to start saving for your future.