Learning about healthy financial habits and practising your financial skills (like you're doing now!) can increase your financial confidence and have a positive effect on your financial wellbeing.
We are living longer than we used to, thanks to improved standards of living and better healthcare. It is essential, therefore, to start putting aside money for your retirement as early as you possibly can.
It is hard to estimate how much money you might need for your retirement. A good way to begin planning for life after work is to assume you'll need between half and two-thirds of your salary, after tax is deducted, to maintain your current lifestyle.
The earlier you start saving, the larger your retirement goal will be. That's because the longer you save, the more the interest you earn compounds, which is when you earn interest not only on your savings, but also on the accumulated interest you've already earned. This interest on your interest is called compound interest.
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