The author, Jen Glantz. Insider’s experts choose the best products and services to help make smart decisions with your money ( here’s how ). In some cases, we receive a commission from our our partners , however, our opinions are our own. Terms apply to offers listed on this page. I finally got serious about retirement planning in my 30s and opened up a SEP IRA.

But I realized I needed a better plan to reach my goal of retiring early as a millionaire.

Now, I’m keeping strict track of my budget, diversifying my investments, and building new income streams.

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For most of my 20s, I rolled my eyes at the thought of saving money for retirement. I was mismanaging my finances, spending more money than I was making, so the thought of putting away cash for the distant future was something I was completely unwilling to do.

When I turned 30, I realized that I didn’t want to struggle financially anymore. But to change that, I’d have to make some significant adjustments.

I started an emergency fund , stuck to a strict budget, began investing, and, for the first time in my life, took saving for retirement seriously by opening a SEP IRA.

But as I saw more and more adults in my life not be able to retire at age 65, I knew that I didn’t want to follow in their footsteps and still be working hard at a full-time job at that age. That’s why I set a hefty goal for myself: to retire (ideally in my 50s) as a millionaire. To make that happen, I’m taking five steps right now. Retirement Calculator

Use Insider’s calculator to see if you’re on your way to a comfortable retirement by answering a few questions about yourself, your savings, and how long you expect to keep working.

How old are you?

How much have you saved for retirement?

What is your annual household income?

How much will you save each month?

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$5,000

At what age do you plan to retire? 0100Optional It indicates an expandable section or menu, or sometimes previous / next navigation options. Expected annual average pay increase? Anticipated monthly retirement spending? 70% of pre-retirement incomeLife expectancy? You will have about$1,725,000You will need about$2,940,000*Need is based on covering 70% of your annual pre-retirement income and a life expectancy of 100 years. 1. Keeping a close eye on my money Even though retiring as a millionaire is my future goal, in order to take any steps in the present to make that happen, I have to make sure I’m in complete control of my finances now.For the past year, I’ve set a strict monthly budget that I usually stick to (or am very close to sticking to) in order to limit any overspending. I try to save between 20 and 25% of my income every year and use that cash to fund my emergency or retirement fund, or contribute some of it to my investment portfolio.To make sure I’m staying on track, I check my finances regularly.On a daily basis, I make sure I’m accounting for all the purchases of the day and tracking those numbers in my budget.On a weekly basis, I check my credit card statements to stay mindful about my spending and make sure there aren’t any mistakes.At the end of the month, I spend an hour doing a self-report of my entire net worth, tracking how much my investment accounts went up or down for the month, how much I was able to save, and decide how much additional money I can contribute to my retirement fund that month (in addition to my monthly minimum that I contribute). 2. Making recurring contributions to my retirement fund Before I turned 30, I had a small 401(k) that I had contributed to a few times over the years and nothing else to show for my retirement savings.After opening up a SEP IRA , I decided to contribute a minimum set amount at the end of every month. By contributing to a SEP IRA monthly, the cash in that account can grow tax-deferred until retirement, which means I don’t have to worry about paying taxes on that money, or its growth, until later. […]

source I’ve watched too many adults in my life fail to retire, so I’m taking 5 steps to make sure I become a millionaire and reach that goal

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