8 Easy Ways to Increase Your Retirement Savings
For some, retirement may seem far off; For others, it may be fast approaching. The truth of the matter is that for most people, retirement is inevitable. So why not enjoy it? Many of us envision our golden years as a time to relish in some of life’s luxuries. But in order to have a big retirement fund, you have to plan and prepare in advance.
Retirement planning can be a complex task that involves a variety of intricate financial terms such as IRA, diversified portfolio, etc. But planning for retirement can be simple and easy with some foresight and discipline. Here are eight easy ways to increase your retirement savings:
1. Pay Off Debts
Put your money on a timeline – past, present, and future. Debts would be considered past expenses. This means you have already decided to spend on things you just haven’t been able to pay off. Present expenses would be your daily lifestyle, including how you manage your spending. Future expenses would be your savings, which includes your retirement. If your income is being spent more on past expenses, you’ll have less money left for your present and future. And that leads to a considerably lighter retirement fund.
2. Avoid Unnecessary Spending
Take a look at what you’re already spending your income on. Review your bank and credit card statements to see if there are services you are paying for and not using – monthly subscriptions, club memberships, etc. Periodically check out the latest deals with your service providers – internet, cable TV, and so on. They may have better rates and upgraded features. You may find that your current service is already being offered for a lower price. These savings can be used to contribute to your retirement fund.
3. Live Frugally
If Warren Buffet can live in the same house for over 50 years despite the millions of dollars he makes, so can you. Believe it or not, rich people are rich because they live modest lifestyles despite their high incomes. Live within your means by spending less than what you earn. So instead of buying a new car, consider a used one. Making small changes right now can lead to bigger rewards tomorrow.
4. Start Saving Early
If you haven’t started saving for retirement yet, you should start right now. You may think that being in your 20s, 30s, or 40s leaves you lots of time before heading into retirement. Time flies fast. And the sooner you start saving for your retirement, the more money you’ll have to enjoy when you retire. That’s the magic of compounding interest.
5. Save Automatically
Set it and forget it. Creating automatic transfers to your retirement savings account removes the pressure of setting money aside every month. Because you’ll have a system in place, you’ll also avoid the possibility of missing a deposit. You’ll have a continuous stream of money flowing into your retirement fund.
6. Save at Least 10 Percent
Having a pension plan isn’t enough to richly enjoy your retirement. Retirement experts suggest saving at least 10 percent of your income in order to have a comfortable retirement. It’s recommended to save between 10 to 15 percent of your income in order to maintain your current lifestyle in retirement. Don’t fret if you can’t save 15 percent right now – just make sure you gradually increase your contributions as your income rises. The top 1% of the wealthiest people in America save about 40% of their income. The more you save, the better your chances of having a big retirement fund.
7. Save Your Raise
It’s easy to want more when you’re earning more. But when you’re already making ends meet before that raise, why not use the extra income for your retirement savings instead? You won’t be sacrificing your current standard of living, you’ll just be improving your future lifestyle.
8. Have Additional Income
If you have different ways of earning money, you’ll have more money to put into your retirement fund. Creating additional income can be easier that you think. You can try to make money from a hobby, do some extra freelance work, get a second job, or have a side business. It might be time for you to rent out that spare bedroom. Even babysitting can lead to a richer retirement.
Just remember that planning for retirement isn’t just about the money, it’s also about the experiences and memories you make along the way.
Do you need some financial assistance in your retirement? Magical Credit offers short-term loans between $2,000-$10,000 to anyone with a steady source of income or government subsidy such as a pension plan. Call us today at 1-877-213-2088.