It’s never too early—or too late—to start saving for your retirement! Even if you have a small income or a big debt, you can still find simple and straightforward ways to set aside funds for retirement. A few suggestions:
1) Cut down on spending.
Sometimes the most effective method is also the simplest, particularly when it comes to saving money. It’s always worth taking a look at your your spending habits to see where you can trim the fat. Make a targeted plan of action. If debt is dragging down your finances, call your credit card company and asking for better interest rates. Ss the customer in a competitive market, you have the upper hand.
2) Work on paying off your debts.
It may be easier said than done, but everyone should aim to be debt-free before retirement. One big tip for eliminating debt: pay your credit card balance in full every month. If you can’t do that, try at least to pay double or triple the minimum payment, because you’ll save much more on interest in the long run.
3) Contribute to a retirement account.
If you want to go a step beyond the bare-bones savings account, consider putting your money into a dedicated retirement account. You can sign up to contribute a portion of your earnings to your company’s 401(k), or explore the several different types of IRAs that may be available to you. Many of these accounts will let your money grow tax-free while making it tougher for you to withdraw.
4) Make a contingency plan.
When it comes to your finances, expect the unexpected. Why not allocate funds specifically for those rainy days? Consider starting up an emergency savings account for those unforeseen expenses, so you won’t have to dip into your retirement savings to make it work.
When the time comes to make plans for retirement, contact Denise Stewart can help you create a practical plan for all of your wealth management and estate planning needs.
Written by ELTC Law Group
