A little more savings never hurt anyone just before retirement. It definitely eases the mind, knowing that you will have money to pull out later. A few good habits can help thicken your wallet if you are close to retiring. Follow the tips below to pile your cash up before you quit working for good.
- Automate your savings.
Automate a portion of your income and transfer it to your retirement savings every month. Do not wait until you have extra money to save. Put away whatever amount you can and do so diligently. Consider your retirement savings as an obligation – this is the most responsible way to go about it.
- Pinch your budget a little bit more.
How much would you like to save in a year? No matter how large the number seems, if you divide it into weekly savings, it will all be manageable. An extra $650 a year is just $12.50 a week, for example. This is the equivalent of a meal out or a few coffees. Study your budget and track your expenses. You are likely to see categories where you can save an extra dollar or two. Funnel these into your retirement savings for extra cash.
- Get rid of debt.
Imagine every dollar that you pay on interest going into your retirement fund. Use this as motivation to destroy your debt. List them all down and focus on repaying them one at a time. Find whatever extra money you can wherever you can to increase your debt payments. Never pay just the minimum. Remember, your credit card provider does not care when, how, or if you retire. Get rid of your debt and borrow as little as possible. You deserve so much better.
- Explore a 401(k) and other retirement plans.
Look into retirement plans that are available to you. If your employer offers a 401(k) and matches your contributions, max your contributions to get the best benefits. It is a rare opportunity to double your money for nothing. If your job does not offer a retirement plan, you can create your own with an individual retirement account. You have to focus on this today to take care of your future.