Solve financial emergencies quicker

This might be the biggest of all reasons for why you should be saving more for retirement. You will have less income to pay bills, and a much lower chance of having to borrow money or put your house up as collateral to pay a debt you don't want to carry.

We all know the saying:

"You can't keep saving and saving and saving without eventually running out of things to save."

But you don't have to be in financial turmoil to have that saying apply to you. You just have to have no choice but to put yourself on a saving track.

You can do this with a combination of your savings and your other investments. One financial planner I talked to described it best:

"By investing your money as a group and creating a financial cushion, you are taking a big first step. I recommend not trying to do it on your own. You will need a lot of help from your family, friends, your employers, and so on."

3. Never "Just Do It"

When you don't have enough money, you can't just do it. You have to think about what you can't afford. The point of the saving guide is to show you ways you can start saving money without asking for a credit loan. Once you know how to do it, you need to learn how to make the most of it. The financial adviser I talked to put it this way: "You need to do some work with the money, but you don't need to try and live off of that. Just make sure you have a backup plan." You might not be able to afford your dream vacation now. You might not be able to buy your dream car now. But you can still save for them. What about later in your life? What about when you have money saved up? You may have one more vacation you can take before you start working for a living. So make sure you invest in your future.

The first step to saving your money for retirement is to start saving. Start with a $5,000 emergency fund and set aside $3,000 a month. Once you hit that $3,000 per month, you can start thinking about saving for your retirement or paying off your student loan. Keep saving and you will be surprised at what you can achieve.

If you are saving for a retirement in the meantime, I recommend you start saving today. The majority of people who don't save for retirement spend all of their income at age 60 to pay for their Social Security or their pension. Most people spend all their income as soon as they are ready to retire, but saving now is much more important and will give you more financial security in retirement. If you are 50, you can make the extra investment in an indexed account that will have guaranteed income for the rest of your life, unlike the money in a 401k that you'll need to continue working and pay taxes on. Once you have a savings account, you'll need to make adjustments if the stock market is down or the economy is weak.

2. Invest in low-cost index funds. Index funds are popular with most people, but they aren't perfect. You may have to increase your investments if the stock market is down, or you may need to reduce your investments when the stock market is up. But since you already have a financial plan, this is a simple adjustment that you can make on the fly, without needing a plan.