There was once a time when people didn’t have to think about ways to save for retirement until they were much older. Nowadays people are increasingly expected to save for retirement.
There are signs that people are not sufficiently planning for the future. Over 66 percent of millennials have absolutely nothing saved for retirement.
But it’s not just millennials that are unprepared for stopping working. Many Baby Boomers who are approaching retirement are ill-prepared for financial emergencies, nevermind retirement.
It’s never too late to start preparing for your financial future. If you want to retire at a reasonable age, it’s important to invest your dollars wisely today. Keep reading for our 10 retirement saving tips that you haven’t thought of.
1. Inconvenience Helps With Savings
The 21st century might be the ‘age of convenience‘ but convenience is not all it’s cracked up to be. This is especially the case when you’re trying to save money for retirement.
Two-thirds of Americans use some form of online banking. This means that most people are a click or two away from transferring money.
Maybe it’s for the soccer magazine subscription you’ve had your eye on, or the winter coat you think will look great with your new boots.
By making your money harder to access, you could be doing your future self a massive favor, even if you can’t give up the easy life so quickly. You can put your savings into a different account from your current account.
Suddenly the banks that charge ridiculous sums to withdraw your cash or have lousy opening hours becomes an asset for anyone wanting to save money.
The best thing you can probably do is open up a tax-advantaged 401(k) retirement account or an IRA (Individual Retirement Account). These both discourage withdrawals in the form of serious penalties.
2. Cultivate Your Cash-Stashing Habits
Of course, the best place for your savings is in the bank and other investment funds, the more diversified the better. But a saving account can be anything that stops you spending your dollars.
That might be the jar of pocket change on your nightstand or the cash you left in an older pair of jeans. Whatever your cash-stashing habits are it’s important to cultivate them to help yourself save your money rather than spending it.
3. Paying off Debts is Not Money to Spare
Have you recently come to the end of your car payments? Or, maybe you have finally paid off your student debts?
It’s easy to think that you now have money to spare after paying off your debts. But instead of using the surplus income to pay for a vacation weekend or a new outfit, you should be diverting into a savings account.
Since you’ve been paying off your debts on a monthly basis for some time now, you won’t miss the money.
4. Every Windfall is a Saving Opportunity
If you get a cash bonus at work or a tax refund, set aside the money from the windfall.
It’s not all doom and gloom. You can still enjoy some of the cash. After all, you’ve earned it.
But it’s important to put away at least a third as savings for retirement. This way you balance living in the moment with the needs of tomorrow.
5. Automatic Savings Accounts
Have you ever wondered how much you would have saved if every time you paid 99 cents for something, you’d have pocketed the change?
That’s exactly what automatic savings accounts do. For every time you use your credit card to buy something, the account will automatically round up the purchase to the nearest dollar. The remaining cash is automatically transferred to a savings account.
This is a great way to passively save money for a rainy day. It’s been called a “Keep the Change” account. It’s available at a wide range of banks and credit unions.
6. Download Savings Apps
We have apps for everything nowadays. But did you know that there are many savings apps that you can download for your smartphone?
The Acorns app is similar to the round-up savings account idea. However, instead of putting your spare change into a savings account, it places a percentage of the payment into an investment account. Acorns provides five portfolios of exchange-traded funds for customers to choose from.
On the downside, Acorns is not insured. This means that it’s not backed up by the Federal government. As a result, it’s not as secure as a bank. But it’s still a great tool for people looking to save money for retirement.
Digit is another great app that analyzes how your spending and bank statements to help you save money. With this information, it knows when to put money away for savings and when it’s time to take a break.
7. Tap Into Your Competitive Nature
Saving money for retirement doesn’t seem like much fun. By turning it into a game, you might find you’re quite good at it.
Give yourself achievable savings goals every month. Maybe you start by saving $100 every month. Once you achieve the goal, set yourself an even more ambitious target.
Before you know it, you’ll be saving lots more money every month just because you’re determined to beat your previous effort.
8. Get the Best Deal
Good savers are always good at negotiating the best deal. Don’t simply assume that you have to pay what’s on the price tag because sometimes there’s room to negotiate. After all, you have nothing to lose and much to gain by getting discounts.
If you’re in a store buying a pair of shoes, always check the online price against the store price. If the online price is cheaper than the store price, most retailers are willing to match it.
9. Save and Pay-off Debts at the Same Time
It’s easy to get distracted by debts. Just because of you have student debts or a mortgage to pay off, that doesn’t mean you can’t also save for your retirement.
Even putting a $10 every month is better than nothing.
10. Learn to Cook Yummy Meals at Home
After housing and transport, the third biggest expense of most Americans is food. In fact, 43 percent of the annual food budget of the average family goes toward eating meals out.
This suggests that simply learning how to cook yummy meals could save your thousands of dollars every year. The evidence shows that eating at home is also better for your health.
Our Retirement Saving Tips
With these top 10 retirement saving tips, you can make sure you effectively save for your retirement. It’s easy to think that retirement is far in the future. But, there’s no better time than the present to prepare for the future.
If you enjoyed this blog post, check out our blog posts on how to save your dollars today!