Saving up for retirement can be terrifying, but it gets even scarier when you realize how much you have to do in so little time. Maybe you lost it all in a bad real estate investment or disaster struck economically. Maybe you haven’t been saving as vigilantly as possible. Maybe you haven’t saved at all. Well, you can still retire—provided that you’re willing to put in the work. For those looking to catch up on saving for retirement—or those who want to amp up their nest eggs—these tips will help decrease the gap.
- Cut down on expenses. Whether you’re a big movie buff, enjoy the occasional shopping spree, or have a costly hobby, you’ll need to cut down on your expenses. It may mean a few years without fun, but it will be worth it to create a strong foundation for your retirement fund. If you don’t think you can last in such a boring environment, that’s perfectly normal. Take advantage of free local events and activities to fill in the gaps, such as concerts or volunteer gatherings.
- Take advantage of your employer’s contributions. Your company can work for you, growing your 401(k). Make sure that you contribute the maximum amounts so that your employers can do the same. You’ll see that your nest egg will grow and grow, allowing you to catch up on saving for retirement. If you’re unsure of exactly how your company policy on this subject works, don’t be afraid to schedule a talk with your employer. They offer these benefits because they care about your future and want to reward your hard work!
- Adjust your timeline. Sometimes, the math just isn’t on your side. Though staying on the workforce for a few more years may seem like the end of the world, you can make it bearable. Perhaps you can switch jobs to something simpler, or you can shift to part-time work. That way, you still can grow your retirement fund without having to put in an enormous amount of work. This is also a great option for those who like to stay active, giving them the satisfaction of a job well done. Finally, many people end up working part-time in retirement. Not for money, as you may think, but for fun! You’re among good company if you continue to remain in the job force.
- Schedule automatic savings. So, you’ve stopped spending money on unnecessary expenses and you’re getting more in the bank. Now, it’s time to increase your savings. Go through your budget and do the math. Then, see how much you can afford to add to your savings each month. You can schedule automatic transfers from your checking account to your savings account, keeping you from spending even further. You can schedule these payments weekly, bi-weekly, or monthly—whatever works best for you.
- Don’t take big risks—take responsible ones. Now, it may be tempting to make big-risk investments at this point. After all, if you succeed, your retirement fund can grow astronomically. However, following that same principle, your nest egg can decrease in value just as astronomically. Instead, what you need to do is grow your savings in a money-protected fund—just like the ones we offer.
Though building a retirement fund can cause extreme amounts of stress, you have the capabilities to create the necessary foundation for your future. The next few years may be stressful, but when it comes to enjoy the fruits of your labor, you’ll be grateful for your sensible actions.
At Ty J. Young Inc., we’re happy to help you catch up on saving for retirement. We want to help you create the brightest future possible, so give us a call at 877-912-1919 to get started. To learn more about successfully growing your retirement fund, continue to read our blog each week!