posted 08-02-2003 06:46 AM         

You may think that to get started as an investor, you need a large amount of money. That's not true. It's never too early to start thinking about your financial needs for retirement and it's never too late to start planning and saving for it.

Set a realistic budget

Starting a regular savings or investment plan requires commitment. You may find this easier to achieve by first setting yourself a realistic budget. Often it seems easier to put off saving or investing for another day when you think your financial situation may improve. You may find that retirement creeps up on you first!

Small amounts help

Most people will never be fantastically wealthy, but small amounts saved regularly do help. You can increase the amount as your circumstances allow. Over time, this money can add up to help make your future more comfortable and enjoyable. It can allow you to do things in later life or retirement that youve always dreamed of, and which might otherwise be unaffordable.

Pay yourself first

Think of the amount you save regularly as paying yourself first. Paying yourself first adds to your future security and gives you more choices about your future lifestyle. Consider also that you can expect to remain active and live much longer in retirement than previous generations, which increases your need for financial security.

Saving or investing

Before you decide how to manage your money, you need to consider your future needs. Money for short-term expenses or emergencies is best kept in low risk, readily accessible accounts such as savings accounts. Any extra money you have could be invested for longer periods to earn you a higher return.