It is quite easy to spend every cent that you earn. In fact, with the credit card culture, it’s very easy to spend more than what you earn. Most Americans are in debt. According to the U.S. National Debt Clock Organization, the United States’ current total debt is more than $13 trillion. This figure increases approximately $10,000 every second. If we split the national debt and divide it to each American, each citizen owes more than $43,200 (YES, even newborn babies already have debts).

That’s why it seems counterproductive to talk about saving money. But the reality is, you have to save money for various purposes. For one, as an employee, you need to save for your twilight years so that you could look forward to retiring in relative comfort and ease.

Here are the top five reasons why you should start saving now for retirement.

1. The earlier you start, the better.
The beauty of interest is that the earlier you start, the more you would have in the future. It really does not matter if you save $10 or $100 today from your salary, in ten years time that would have compounded to a much greater sum. Just imagine, even if you just set aside $1,000 today in a savings account with 10% interest per annum, that would mean you have $1,100 next year and $2,593.74 by the tenth year.

2. Beat income restrictions from opening a Roth IRA account.
A Roth IRA account does not only serve as a retirement fund, it also gives you perks like tax deferrals and potential tax exemptions. There are certain income restrictions to opening a Roth IRA, though. You might be required to comply a salary bracket, which would hinder you from opening a Roth IRA account.

3. Get more flexibility.
Having a retirement fund could also help you become more willing to take on other investments. The interest you have on your retirement fund could be used to buy stocks and other equities. While you still hold a comfortable sum of your retirement money, you still have the leeway to take risks. You certainly cannot risk losing a substantial amount of your retirement fund when you are 60, but you can certainly risk some of it at 30 or 25.

4. Get a lifeline.
Saving money for an early retirement fund can give you a peace of mind. For instance, if you suddenly lose your job or a family emergency arises, you have the money to fall back on. An extra cash can be your greatest lifeline if you encounter a temporary setback.

5. Social security might not be enough.
Most people rely on social security for their retirement funds. Like most other funds, social security might be mismanaged, or misappropriated. Laws and procedures may change. In the end, there is a possibility that not everybody might be able to get their social security money. Even if you get your pension checks, it might not be enough for the lifestyle you have wanted after retirement.

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