Hi, guys. Let's talk serious today. We are all thinking of our future. Life expenses are changing daily. More and more millennials can't afford living costs. Every year, millennials spend 30% of their income on housing. The rest goes for food, clothes and much-needed entertainment. In the country where I was born, people never worried about the future, because of their mentality to live only for one day. My parents are a great example of people who thought that they will have a good job, money and health forever. But life doesn't work this way, sadly. Unless you are a grandchild of the richest man in the world. Haha. Well, blogging is probably the most expensive hobby that I have ever had! I'm not even talking about how much money I spend on clothes, but rather, transportation, food, and gear like cameras, lenses, funky gadgets, etc.
Anyway, I am almost 30 years old, and started to realize that I have nothing for my future besides 60 pairs of shoes. Free clothes I get from brands are not going to feed me when I am old. My husband told me that I need to think of saving money and not spending what I get. Becoming a part of US society, I needed to learn why it is important to think of my retirement.
Well, my husband is a wise man, and told me that I should put some of my money in a savings account (as an "emergency fund"), and trying to max annual contributions to my IRA. If you are not familiar with IRAs, I am going to try to explain quickly. An Individual Retirement Account (IRA) is "a type of savings account that is designed to help you save for retirement." Basically, you have to contribute a certain amount of money every year that will grow slowly. You're not supposed to touch this money, which makes it different from a regular savings account. When the time comes to retire, you will be thankful to yourself that you started to save some money. Obviously, I am not a financial expert. I don't know how stocks work, or bonds, or rules. However, I do believe it is a smart decision that you should consider if you plan to be comfortable in old age. I hope this post will motivate younger people to think about their future!