Easy Ways to Save More for Retirement
Saving for retirement can take sacrifice. After all, it can be hard to take the long-term view and invest for something that’s 20 or 30 years down the line when you have situations and needs happening right now that need attention and resources.
The good news is, there are some ways to easily increase the amount you are saving for the future without changing your lifestyle.
Invest Your Raises
Commit your salary increases toward boosting your investments. That is something you can commit to right now. Right now, your budget and spending are based on your current income. When your earnings increase, there’s no reason to immediately find trivial ways to eat up the extra money. Instead, just continue living exactly as you have been.
The extra money from your pay increases can immediately be diverted into savings and then investment before you get even a single larger paycheck. You probably will not miss the money since you aren’t used to having it in the first place. Plus, you won’t have to make any extra sacrifices or spending cuts which is one of the primary reasons people don’t save and invest more.
Don’t Leave Money on the Table
When was the last time you turned down free money? If you have a 401(k) at work, chances are good your employer provides at least some matching contributions. Basically, if you contribute, they do as well. The specific rules for how much they’ll match varies by company, but you should always invest enough to claim your full match.
Maximizing your employer’s 401(k) plan match is one of the most important must-do strategies of retirement planning. It really is free money you receive from your employer after you make pre-tax contributions to your retirement plan from your paycheck.
Increase the amount you’re investing since your employer is just handing you some of the cash you’re putting away. If your employer matches 100% of your contributions up to a specific percent of your salary, every dollar you personally put into your account will immediately turn into $2 until you hit your matching limit.
Invest Tax Refunds and Stimulus
Many Americans end of receiving tax refunds and Most Americans have received government stimulus money recently. Tax refunds can vary by year and amount. Recently, there were two stimulus check bills signed into law by President Donald Trump in 2020. And President Joe Biden signed another stimulus bill in March of 2021 providing $1,400 payments to eligible individuals including adults and all their dependents.
If you’re behind on bills, in danger of falling behind, or don’t have an emergency fund set up or fully funded, addressing these issues should be the top priority with your incoming money. But if that’s not the case, investing the stimulus cash is a great option, and yet another effortless way to end up with more money for retirement funds. The quicker you deploy the money in investments the less chance it sits around and slowly disappears on who knows what.
Pay Yourself for Deals and Negotiations
If you are taking the time to find a discount or negotiate a deal on something you are purchasing, get in the habit of paying yourself either some or all of the difference. This is a way to reward yourself and continue to the habit. Small amounts of money invested over periods of time can make a big difference on that end nest egg you are trying to create and fund for the retirement future you want to live.
It really is a simple retirement savings hack. If you are purchasing something for $200 and you are able to receive a 20% discount or negotiate the price of the item down to $160, take the difference of $40 and invest that money. Learn to pay yourself for every way you can improve your finances. It serves as motivation to find more ways and the compounding effect creates great money habits.
Everyone wants more retirement income. However, a goal without a plan is just a wish or a dream. Having a plan of action is half the battle and executing the plan is the rest. Where are you now, where do you want to be and how are you going to get there is the basis to start your plan.
Submitted By Mike Amos
Founder and Active Contributor of millionairemindset.life