Do you feel like you will be able to save for retirement?
If you thought or answered “no”, don’t worry, you’re not the only one who is concerned about having a possible shortfall.
The act of saving for retirement can be challenging for a variety of reasons. Including not knowing how much you’ll need or if your superannuation is going to give you a high enough return. You might also be concerned about your insurance coverage.
People often spend an enormous amount of time worrying about finances and no one wants that. To help we’ve developed 6 simple and quick ways to save for retirement.
6 simple and quick ways to save for retirement
Pay yourself first
Before you pay any bills, pay yourself first. You and your savings account should be the top priority. Set it up as an automatic transfer so that you don’t even see the money in the main account that you pay bills from. By paying yourself first, you’re making it a point to save money for retirement. You can also pay yourself first by making a voluntary salary sacrifice into your superannuation.
Get out of debt
Get out of debt now and continue on the debt-free path. Debt from credit cards, personal loans and other interest-bearing loans will simply result in a lesser amount of money to save over the years. If you currently have debt, come up with a reduction plan and stick to it. As your debt goes down, put the money you would have spent on interest into your retirement savings.
Stop spending after paying off loans
As you pay off secured debts like your car and home, start saving that money as well. Most people when they pay off a big purchase item, they go out and spend the extra money they now have leftover. However, this habit derails the ability to save. Drive around your already paid off car for a few years and put the money from your previous payment into retirement savings.
Cook at home
Ditch the takeout and learn how to cook your meals at home. People waste thousands of dollars every single year grabbing food on the go. If you have long work hours, you can always meal prep on one of your days off so that you simply have to reheat when you get home. The money you save on food alone can add a nice padding to your retirement savings.
Eliminate late fees
Eliminate late fees by using automatic bill pay systems. Many banks have bill pay systems where all you need to do is set up a little information and they pay your creditors and utility providers for you. If your bank doesn’t have this option, simply call your utility company and creditors and ask that your money be taken out of your bank account automatically when it’s due. By doing this, you’re avoiding any late fees.
Save additional money
Don’t look at any future raises or work bonuses as money you can spend. Continue to live the same lifestyle you have been before the raise or bonus and then take the raise and/or bonus and put it towards retirement.
As you can see, it’s actually quite simple to add more money to your retirement saving. With a few little changes in your financial and spending habits, you can gain traction and be closer to your retirement savings goals. If you need additional help or have any questions about a complete strategy speak to a qualified Paradise Financial advisor.