As you start to plan for retirement, it is important to start saving for the future as early as possible. However, many myths about retirement savings can prevent you from putting enough away. Here are five easy ways to save for retirement without sacrificing your quality of life.
Invest in Yourself when it comes to retirement planning
Many people forget that they can save money by investing in themselves. This means investing in things like education, training, and experience. There is something to be said about learning where you stand on your journey. This is not a measurement of you against your peers or co-workers but more of a measurement to sustain your current lifestyle pre-retirement. There are plenty of tools or online assessments to get an idea of where you stand. We have listed a few resources below.
2. Retirement Report Card
Invest In Your Home when it comes to retirement planning
Investing in your home is one of the best ways to save for retirement. This means buying an affordable and adding to it over time within moderation. For example, ensure the house has easy access for wheelchairs and lowered cabinets. Investing in your home may also mean refinancing when interest rates are favorable to a shorter term, from 30 years to 15 years.
If you believe you have not saved enough, this strategy means at least you pay off the most significant expense you have going into retirement by investing now during your working years. Of course, you can't make back double digital returns in a short amount of time from investing in your 401k without risk, but you can reduce your largest monthly obligation on the back end.
3 Retirement Moves You Must Make Today (Episode 19 Podcast)
Don't spend too much on your home's upgrades- instead, focus on things like energy efficiency and elderly maintenance upgrades.
Don't Be Afraid when it comes to retirement planning
In addition to investing in yourself and your home, don't be afraid to admit your current position regarding retirement. You can not be afraid to own your place in your personal retirement race. If you're unsure where to start with saving for retirement, consider consulting with an affordable retirement planning professional. These professionals can help identify your specific financial needs and recommend the best ways to save for retirement. The earlier you know and face the elephant in the room, the better.
Just Open Your 401k Statements
One of the best ways to save for retirement can be as simple as just opening your 401k statements. But, unfortunately, most people have just failed at this one part. Some have gone years without opening any retirement statements and could have avoided mistakes like having their money sit in cash, earning 1% when the overall account fees are 3%. This, unfortunately, means they went years losing money twice. First, they lost because their underlying investments did not cover the overall plan cost, and uncle Sam was still yet to tax the withdrawal.
Review Your Bank Statement for 2 Months
One of the best ways to save for retirement and find what I call "Leaky Funds" is to go through your bank statements for the past two months. Add up small expenses or subscriptions that you have forgotten about on a separate piece of paper. Most of our students find, on average, $75 in bad, unused, expired subscriptions or expenses which can be converted into retirement savings. This exercise will help you save monthly money to contribute to your savings plan and grow your retirement savings.
If you are planning on retiring, it is important to start saving early, invest in yourself and not be afraid to face the elephant while there is still time to fix it. There are many easy ways to save for retirement that do not involve sacrifice. What are some of your tips for saving for retirement? We’d love to hear from you.