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4 Tips to Get Started Saving for Retirement

4 Tips to Get Started Saving for Retirement

We are all at different stages of life. For some people, retirement is just around the corner, and with that comes the worry that they may not be able to afford the lifestyle that they are either used to, or desire. For others, retirement is so far away, it rarely comes up in their mind and when it does, it is quickly put aside.

It shouldn’t matter how old anyone is when it comes to retirement. Retirement should be on everyone’s mind. Yes, the older you get, the closer you get to retirement. However, money put away when you are young ends up being worth a lot more when you are old due to compounding interest.[1] Saving up for a period of time doesn’t have to be hard or complicated, it is more about consistency. So here are five ways that you can consistently save money that can go directly toward your retirement fund:

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Side job

A lot of people will get a small side job where they make a few hundred dollars a month to put directly towards retirement. This will only take about 10 to 20 hours a month depending on how much you get paid, but it can have drastic results when it comes to retiring on time, or even retiring early. If you can start putting away a few hundred dollars every month at the age of 25, you will likely be able to retire at least 10 years early. Isn’t that worth working an extra hour or two a week?

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Change habits

Almost everyone has a few habits that they do almost every day that costs a small amount of money. For some people, it is that cup of coffee in the morning. For others, it is eating out at lunchtime every day. Whatever your habit is, it is now is the time to cut it. Coffee is one of the easiest daily expenses for many people to cut. You can find many cost benefits to cutting your morning coffee purchase and buying your own espresso machine instead. Not only is money saved, but there are other benefits as well.

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Just do it

Some people make enough money that they don’t have to make too many changes in their everyday lifestyle. They just need to start putting away a little bit of money each month. If this is you, then you are in the best predicament. If you are currently making more than you spend each month, a portion of that money should always be going towards retirement. It doesn’t have to be a large portion either, especially if you are young. The key to having enough money to retire with is not putting away large chunks at a time, but rather putting away smaller chunks for a lifetime.[2]

Buy a house

If you are still renting a house and have the ability to purchase a house, then it might be time to do so.[3] Many people retire early with the income from owning multiple homes. Homes have been proven to go up in value over time and have done so for over a hundred years. Sure, there are tough times when home values drop for a few years, but if you purchase a home and hold onto it for long enough, you will find that you save a significant amount of money that can be used towards retirement. When you pay your rent every month, you are probably paying for someone else to retire early.

The real theme of this article is to do something. It is always the best time now to start saving for retirement. Do what you can, and you will not regret it in the future.

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Reference

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Spencer Mecham

Personal Finance Coach, Digital Marketer

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Last Updated on November 24, 2020

10 Steps To Help You Make Your First Million Dollars

10 Steps To Help You Make Your First Million Dollars

Money may not be everything, but the things it could afford makes certain things so much easier. While it can’t afford true love, kindness, passion and wisdom, certain processes becomes much more efficient. A million dollar today compared to a million dollar ages ago is indeed a lot different in terms of value. At the present, it is more possible to make your first million if you really want it. Especially, there are many ways the world can offer to help you make your first million dollars.

Believe you are capable, and you’ll get there. Here are 10 ways to ensure you will reach that goal:

1. Stop planning, start doing

“If you wait, all that happens is that you get older!” – Mario Andretti

The first step is sometimes the most challenging step. If you want to get ahead, you should know not only where to go but also when you are going to perform your first move. Planning alone won’t make you succeed. Too much preparation won’t get your things done. So start doing and remain focused on the goal you’ve set. For example, if you want to earn more money through your current job, seek to have a promotion within the organization or find a company that will help you increase your salary. It’s always about starting to take upon yourself the beliefs and habits of highly successful people.

2. Define your priorities

It’s not enough to simply become busy, give most of your attention to what matters the most and what is important to you. Make sure these priorities you create will continue to support your goal. For example, you want to own a brand new car. What exact amount do you need to feel accomplished? What are your ways and means to make it? These are the questions you probably need to ask so you can begin constructing your priorities list. Let’s say, less spending on home furniture can give you more saving that can accumulate until you achieve your dream car.

3. Track your gains and losses

Sometimes you need to take a look back and see the big picture to realize what you have and where you are today. Tracking your gains and losses means monitoring your past activities to come up with a conclusion regarding your progress. Based on your conclusion, you can decide what you should do next.

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4. Make an investment

Invest in something that will accumulate wealth. Invest in assets and avoid too much liabilities. Investment is like watching your plants grow. How much you keep matters more than how much you spend. Make saving a habit. Save while you can.

5. Be patient

No successful person will think he can make tons of money overnight. Many have found themselves in debt because of too much living in the now. While there are many people as well who really get their patience paid off. Patience works to most people. Being patient doesn’t mean waiting while doing nothing. Remember: no aspiring millionaire is a couch potato.

6. Work with what you have and make the most out of it

Instead of thinking about what you lack, focus on what you have and what amazing things you can do with it. Spend your time and energy wisely.

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7. Expand your knowledge

“True knowledge exists in knowing that you know nothing.” – Socrates

There are several exciting ways to improve your knowledge and perspective about what’s new in your field, it’s endless. It is important so you don’t get stuck to one thing. Have courage to push that goal, you have to keep moving, you have to get deep.

8. Establish routine

Be careful with your actions, you become what you do. Begin each morning with a clear mind and definite plans. Stick faithfully to your routine and finish what you’ve started.

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9. Adapt and develop

You can only do better once you begin to recognize what you need to improve. Change is the only constant thing. Adapt new ways and new strategies to develop more effective results. The value of money is never stable, it changes over time. You have to keep an eye to those changes.

10. Focus on your goal

Keep a clear and determined mind constantly to avoid distractions that drain your energy and mislead you. Know your target and your purpose of getting there. Remind yourself everyday to attract favorable things.

Featured photo credit: Giuliano Maiolini via flic.kr

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