When it comes to saving money for a rainy day or retirement, there is a common belief that you have to sacrifice today’s enjoyment for tomorrow’s security. However, it is possible to do both. You can take that vacation you’ve always wanted and still save for a comfortable retirement. Here are a few ways to manage both priorities.

Find your balance

We’ve all heard stories about lottery winners going bankrupt within years of striking it big. The common theme is that the winners did not manage their money well. There’s also the story of the man who pinched pennies and was known for living an extremely frugal life, but who left millions of dollars to his university when he passed away. Both examples illustrate extreme forms of spending and saving, but most of us fall somewhere in between.

The trick is to find a balance between spending and saving that works for you. 

How to plan

Making a plan is easier said than done, but it doesn’t have to be hard. An easy way to get started is to plan in five-year increments. Key components of a good plan are to set specific goals (such as how much you want to save every month for retirement and emergencies) and to set specific timelines (for example, “I will save $1,200 every year for the next five years for retirement.”) By keeping track of your income and expenses, you can determine how much you can save every month while also having a good idea of what is left over for enjoying life.

Track your saving and spending

Once you have a plan, it is a good idea to monitor your progress and adjust as needed. It is just as important, if not more so, to track your spending. Sometimes, you don’t really notice what you’ve spent in a month until you’ve added it all up. For many, seeing that number brings everything into perspective and can help you cut where you need to and increase your savings as required.

Look at the big picture

As a HOOPP member, you can feel confident knowing that you will have a reliable income that begins in retirement and will be paid for the rest of your life. As you work through your budget, you may find that with the security that a HOOPP pension provides for your future, you have a little more to enjoy today. 

For an updated pension estimate, go to HOOPP Connect.