Savings Tips for Millennials Who Want to Retire Rich

See Also: Why You Need a Roth IRA

Forfeiting that advantage now puts you at risk of having to retire later than you want or under less-than-ideal circumstances. In fact, a recent NerdWallet study estimates that 2015 college graduates won't retire until age 75, compared with a current average retirement age of 62. Even if 75 doesn't sound like an unreasonable retirement age to you, reasons beyond your control, such as health problems or being laid off, may force you out of the job before you have enough savings to retire comfortably. Instead of planning to work longer, you're better off saving now. Here are six steps to get you started.

1. Create a budget that includes—and prioritizes—retirement savings.

With rising rents and big student-loan debts stretching their budgets, young adults may feel like they can't afford to save for retirement, says Ramsay. But you should make retirement a part of your financial plan as soon as possible. Any little pain you feel from tightening your budget and squeezing out some savings now will be much easier to take than realizing too late that you haven't saved enough.
One rule of thumb is to save 10% to 15% of your pay for retirement. It's okay to save less than that; any little bit you can muster each month is better than not saving at all. Financial coach and planner Shanda Sullivan suggests starting to save as little as $5 each month. Then increase your savings by $5 every month until you're comfortable adding even more. "You won't even notice it," she says. "Increase it a tiny bit at a time, and you will find saving is a lot easier than you thought. It's just creating that habit of saving."

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