Saving for retirement does not mean eating ramen noodles for the next decade of your life. There are a few easy ways to save money that can ultimately make a big difference in your retirement savings.
A few suggestions for increasing your retirement savings include:
Making a budget and sticking to it
Do not view a budget as depriving you of items you cannot buy but instead, view it as a way of planning for your future. A thought-out budget will help you set priorities when it comes to spending, steering your focus on setting money aside.
Make more than the minimum payments on credit cards
Paying only the minimum payment will mean paying much more in the long run. Try to double or triple the minimum payments you are making every month. Also, do not be afraid to call your credit vard company to ask for a lower interest rate.
Contribute to your 401(k) Plan
Try to contribute as much as you can to your 401(k) or some other type of employer retirement plan especially if you are getting a match. This is basically free money and you are not getting taxed on those contributions. Also, consider an individual development account, available to low to moderate income people to save toward a specific goal. These accounts are supported by non-profit groups and government agencies and provide matching funds.
Adjust your withholding
You may want to consider adjusting your withholding now so your tax refund is not as large. Increasing your savings at the same time will help ensure that you do not end up spending the extra money you receive.
Be cautious about increasing portfolio risks as a way to try to meet your retirement goals. Aim for a realistic rate of return. Seek advice from your financial planner for recommendations on sticking with a long-term asset allocation plan to maximize expected returns for your level of risk. Contact www.westonbanks.com for more information.