I’m Gen Z and I Save $3,000 a Month for Retirement — Here’s How I Do It
Written by
Laura Beck
Edited by
Amen Oyiboke
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
When Brian first got his break in writing for TV back in 2019, retirement savings was the furthest thing from his mind. He was focused on building his career, trying to book the next job and pay his basic expenses. But over time, Brian realized he needed to start thinking long-term and setting money aside for the future.
Through budgeting discipline and some lifestyle adjustments, the now 26-year-old Brian is able to consistently save about $3,000 per month for retirement. By making steady progress and sticking to his system, he’s put himself in a strong financial position for the days when he leaves the writer’s room for the last time.
Adjust Your Mindset Around Saving
When he first started writing, every dollar Brian earned was spent on basic expenses like rent, food, and gas. But once he was more established, Brian knew it was time to start planning for the future.
“Growing up, I never imagined I’d be the kind of person who agonized over IRA contributions and index funds,” said Brian. “That seemed like stuff for real adults, not a regular guy like me focused on doing good work and putting food on the table.”
But Brian realized that in order to retire comfortably someday, he had to start taking money management seriously. This meant getting into habits like automatically setting aside part of each paycheck for savings–not easy for someone used to living job to job.
“I knew it was important to be responsible and think long-term, especially in our unpredictable business,” he said.
Consistently saving each month gives Brian peace of mind that he’ll have a financial cushion after retiring. The consistent savings also reinforce his newfound commitment to planning ahead.
Get Serious About Budgeting
In order to maximize his retirement contributions each month, Brian had to get rigorous about budgeting.
“I set up a simple spreadsheet to track my revenue and expenses,” said Brian. “I update it every month and use it to monitor my profit and how much I can set aside.”
This gives Brian visibility into how much he can afford to save from each paycheck. With this knowledge, Brian configured his finances for automation wherever possible. He set up an S-corp and automatically receives a paycheck from his business account each month, and mandatory expenses come out first before Brian even sees it.
“Sticking to the discretionary budget for dining, entertainment, clothes, etc. can be hard some months when unexpected expenses come up, but I’ve managed to mostly make it work,” he said. “I always pay myself first by automating retirement contributions, then live off what’s left.”
The automated transfers are key–by setting up the contributions to happen automatically, it removes the temptation for Brian to spend that money elsewhere.
Invest in Your Future Self
For his retirement funds, Brian uses a balanced approach across investments. In addition to funding a self-employed 401k, he invests a portion of his income into mutual funds and ETFs.
“I realized that diversifying into stocks and bonds was better aligned with my long-term goals of having some financial freedom and flexibility later in life,” said Brian.
By investing in low-cost index funds each month, Brian can steadily build his portfolio without taking his focus away from the business of writing. The diversified investments provide another source of potential growth for Brian retirement savings. And the set-it-and-forget-it nature of index funds keeps
the investment process simple while he focuses on work.
Stay Focused
While becoming disciplined about his finances makes Brian feel mature, he acknowledges it requires sacrifice.
“Even though aggressively saving for retirement makes me feel like a boring grownup sometimes, I know I’ll appreciate it later,” said Brian. “And it feels good to be responsible and think long-term instead of living recklessly from one day to the next like I used to.”
While he still enjoys the occasional dinners out with friends, Brian takes pride in his writing providing him the income to keep growing his retirement savings, and that his reckless spending days are behind him.
“The days of me being financially reckless are thankfully over,” he said. “I’m proud to have become more of an adult who takes saving seriously instead of a reckless jerk who just doesn’t think about the future. So yeah, maybe I’m a little obsessed with my retirement fund. But in a world that’s constantly changing, it’s the one thing I can count on.”
More From GOBankingRates
