The most important thing about saving for retirement is getting started. Everyone knows they need to save, but for some reason it’s easy to put off taking that initial first step.
Although saving for retirement might seem like an impossible task, there are many simple ways to build your fund. You just have to get started or refocus your efforts and keep going.
Consider the following ways to help boost your savings. No matter what your current stage of life, you can go after the retirement you envision!
1. Contribute to Your 401(k)
If you work for an employer that offers a 401(k) plan and you haven’t opted in yet, that’s the first thing you should do to start building your retirement savings.
Setting up automatic deductions from your paycheck is an essential part of an effective 401(k) because then you don’t “see” the money in your account each month.
Many employers offer dollar-for-dollar match up to a certain percentage, so make sure you are contributing at least that much.
If you are self-employed you can still enjoy the benefits of a 401(k)! Many money management companies are happy to help you create a self-employed 401(k).
2. Start Contributing to an IRA
A 401(k) isn’t the only vehicle to use when building your retirement nest egg. An IRA is another retirement savings account that you can contribute to regularly, up to a certain amount per year.
A Roth IRA will allow you to build retirement savings tax-free, since contributions are made with after-tax dollars. That means when you withdraw funds in retirement you generally will be able to do so without reporting it as income.
At South Suburban Currency Exchanges, we understand the importance of saving for retirement now and that every little bit helps.
Take advantage of our check cashing services, and deposit a percentage into your Roth IRA. Before you know it, you’ll be revving up those retirement savings and growing that nest egg quickly!
3. Rein in Your Spending
Examine your budget. You might negotiate a lower rate on your car insurance or save by bringing your lunch to work instead of buying it.
There are many online budget worksheets and cash flow calculators that can help you determine where your money is going, so you can find places to reduce spending and have more to save and invest.
4. Set a Goal
Knowing how much you’ll need not only makes the process of saving and investing easier, but it can also make it more rewarding.
Set benchmarks along the way, and gain satisfaction as you pursue your retirement goal. Putting money away and saving is the best way to address some of your retirement needs.
Using Direct Deposit from South Suburban Currency Exchanges can help you reach those goals.
Recognizing the need to put money away for retirement is the first step. Understand how much you want to stash away for retirement, and find creative ways to increase your contributions.
Have more questions on services that can assist in setting up your nest egg? Stop by your nearest location, or give us a call today!