Do you have enough saved for retirement? If your answer to this question is a definitive “no,” or if you’re unsure, you’re not alone. Saving money for retirement is a significant challenge for many people these days, and we have very low levels of retirement preparedness in our country.
Set your savings to automatic and pay yourself first
Make saving money for retirement easy. It would be nice if we all made logical decisions about our finances. But there is a big gap between knowing what to do and actually doing it. That’s why it’s important to automate smart saving behaviors whenever possible. Paying yourself first means you don’t give yourself a chance to let your money disappear in the wrong places.
Don’t let yourself get distracted by debt
Excessive debt is one of the biggest obstacles on the path to retirement. If you have some debt issues, now is the time to change the situation with a plan to reduce debt. But if you haven’t gotten there yet, avoid letting debt ruin your retirement plans.
Keep the good habits and get rid of the bad ones
What do you think most Americans do after they pay off their car loan? If you think they spend it, you’re right, but that’s not the best way if you want to achieve financial independence. It’s easy to lose focus on the big picture of our financial lives when extra income appears in our budget after paying off loans or credit card balances. Instead of spending that extra money you’ve grown used to not having, save it instead. Make “contributions” to your retirement account rather than allowing lifestyle changes to harm your saving ability.
Learn how to cook
Cooking for yourself can help save thousands of extra dollars for retirement. You don’t have to be a professional chef to prepare healthy, easy, and delicious meals. The best part of being more active in the kitchen is that you can reduce expenses related to dining out. This helps save more money that can go into your retirement accounts. A healthy diet also improves your overall health, which can significantly reduce healthcare costs in your retirement years.
Use automatic bill payments
Don’t miss any bill payments by making your monthly bill payment process automatic. If you’ve missed payments in the past, this can lead to significant savings over the long term by eliminating late payment fees. Since paying creditors on time is a key factor in determining credit outcomes, automating bill payments can also help lower future borrowing costs for mortgages or car loans.
Avoid spending salary increases and future bonuses
There is a fine line between living in the moment and planning for the future. It’s fine to reward yourself, but remember to do so in moderation and put a significant portion of salary increases or bonuses into retirement savings accounts. It takes a little sacrifice at first, but if you don’t give yourself salary increases, you can put more money into your retirement account, whether that’s in a 401(k), IRA, or regular investment account.
How much time are you willing to dedicate to your day of financial independence? You can give your retirement savings a big boost using some simple steps. Just focus on finding more money in your budget, eliminating costly debt payments, and implementing the saving process. Once you can establish these smart saving habits and avoid debt, you’ll gain significant positive momentum.
Source:
https://www.thebalancemoney.com/6-easy-tricks-to-help-you-save-for-retirement-4077329
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