We all know that saving for retirement is extremely important but it can seem difficult to actually follow through. With actionable tips, you should be able to boost your retirement savings no matter what stage of life you are in.
It is always best to start saving for retirement as soon as possible. It may seem so far off that it doesn’t seem so important but you will thank yourself later. Even if all you can sock away is $20 a month, that will continue to grow thanks to interest and/or dividends.
Here are some things you can start doing now to have more money for the future.
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Boost your Retirement Savings
Pay off your debts as soon as possible
Americans are consumed by debt. Car payments, credit cards, student loans, it all adds up. You will have so much more money to save for retirement if you can pay off those debts as soon as possible.
My favorite method for paying off multiple debts is to take the smallest amount and focus on paying that one off completely ( while paying the minimum amount due on the other debts). Once that smallest debt is paid off, I take that full payment and focus on paying off the second smallest debt. So on and so forth until every debt is eliminated.
Another method is to tackle the debt with the highest interest rate and pay down the debts from there. No matter which method you go with, the sooner you pay off all debt, the more comfortable you will be to save for retirement.
Live Below your Means
Once you have all of your debts paid off, that doesn’t free you up to take on more debt. Try to live below your means as best you can.
Even if you get a raise, don’t spend it all or think you can now go buy more expensive things. Take that extra money and pay off debts, save for retirement, or put it into an emergency savings account.
Having that emergency savings account will let you cover unexpected expenses without sacrificing your monthly retirement savings.
Maximize Retirement Savings Even More
Take on Side Jobs
A great way to be able to boost your retirement savings is by finding the right side hustle for you and your schedule. There are so many flexible jobs that you can do online to earn some extra cash.
Use the extra money you make to pay down your debts ( and save a ton on interest) or put it away for your retirement.
Let your Company Contribute
If you are lucky enough to have an employer that will match a certain percentage of your 401K contributions, you need to take advantage of that.
Make sure you are contributing the maximum amount that they will match to really boost your retirement savings!
Protect your Retirement Savings
Let your Kids Pay for their Own College Tuition
I know you want to help pay for your child’s college but it shouldn’t come at the expense of your retirement savings. This is the time when you need to put your own finances first.
Your child can take out student loans and even get financial aid to help cover the costs. Instead of taking that debt on yourself, you can offer to help pay off their loans when you can. Student loans are a lot more flexible with income-based repayment and deferment options.
You can even offer to help pay for textbooks, food, or rent if you can, just don’t take any money out of your retirement savings to do so.
Caring for your Parents
As your kids are going off to college, your parents are getting older and will need care of their own. This can put a financial strain on you.
The best thing to do is to start preparing and talking about this now so you can budget and keep the costs from eating into your nest egg.
Find a time to sit down with your parents and siblings to have a frank conversation about your parent’s savings and debts and how they will be handled as they continue to age. Everyone needs to be on the same page about what their care will look like and it shouldn’t fall to just one person to take care of everything.
By preparing for your future now, you will be able to actually enjoy your retirement and not feel like a burden or that you need to keep working until you aren’t physically able.
Do what you need to do today to boost your retirement savings for a financially stable future.