Putting off money for retirement should not be difficult. To do this, use the tips below.
Convince yourself that saving money is easy
There is so much spending on our budgets that putting off money for retirement may seem like the last priority. This is a very dangerous way of thinking, as only half of employed people participate in the pension plans of their company, according to the organization The Pew Charitable Trusts. But what if we change the perception of postponing money - just as we learn to eat healthy food instead of harmful snacks? We could accustom ourselves to the useful habits of saving money and save for our retirement simply by using these unusual savings methods.
- Do not press on the gas
“Tests by Edmunds.com have shown that you can drive more miles on the same fuel level by switching from aggressive to more relaxed driving,” says Kara Reynolds, manager of online financial planning service Sum 180 in Louisville. state of Kentucky. If the average American spends roughly $ 1960 a year on fuel, that would be a savings of $ 686 a year. Overcome the urge to be the fastest rider on the road and put the money saved in a savings account.
- Cook in a slow cooker
If you dine too often in a restaurant because you are tired and do not want to cook at home in the evening, look for recipes on the Internet and find a couple of minutes in the morning to download the ingredients to your multi-cooker. Until the moment of your return you will have a ready dinner. By rejecting one restaurant dinner worth 50 dollars a week and instead eating homemade food (costing 2 dollars per person for a family of four), you will save 2184 dollars a year, Reynolds says.
On the subject: 16 easy ways to reduce food waste and save money
- Build your rental income
With websites like Airbnb and Craigslist at your disposal, it's much easier than it used to be to rent out a room or part of your home. Consider converting your basement into a studio apartment and renting it out for $ 600 a month. That's $ 7200 a year, says Carla Deering, CEO of Sum 180. Do you have land near the stables? Consider renting it out for horse pasture. “Three horses at $ 150 a month is 4500 a year,” says Karla.
- Buy mid-week groceries
"Sales usually start in the middle of the week, and if you have a ready-made grocery list, you won't buy on impulse," says debt relief attorney Leslie Thane of Melville, NY. Write down how much you will spend before you enter the store so you can avoid going over your budget. “This greatly reduces the chances of impulse buying and adds to your retirement savings,” she says.
- Take care of a healthy marriage
Divorce is expensive. “Marriage is a long-term commitment that begins with the words 'I agree'. Once you say “I disagree,” not only will your marriage fall apart, but your net worth and retirement savings will be severely impaired, ”says Kevin Smith, founder of Smith, Mayer & Liddle, a consultancy firm of the Janney Montgomery Scott group in York, State. Pennsylvania. "Focus on improving the quality of your marriage and do whatever it takes to overcome the inevitable difficulties inherent in every marriage."
- Do not go to all serious
If you have an addiction that you can't beat, match it with your savings. For example, you are trying to quit smoking. Assuming cigarettes cost $ 7 per pack, “the average smoker can spend $ 2555 a year on cigarettes. Assuming that savings accrue 8% per year, putting the same amount into retirement over 30 years would translate to $ 289, ”Smith says.
- Cut the cable
Some TV channels can also be received via an antenna. “For people who want to discard all unnecessary expenses, there is this way to save a decent amount - cut off cable or satellite transmission channels. This will allow you to take the saved dollars and invest them in long-term savings such as the Roth IRA or savings for the education of children, ”said Jared Snyder, senior financial advisor at Exencial Wealth Advisors in Oklahoma City.
- Turn your hobby into extra income
If you love animals, consider providing pet care services using online services such as DogVacay, performing random tasks through TaskRabbit, or selling collectible exhibits through eBay, says Deering. Easy additional work using your talents can also generate income - for example, writing texts for blogs or working as a nanny, working with a charitable organization, selling your own handicrafts on Etsy or holding courses in the sports complex, says Tein.
- Play with envelopes
Buy a set of envelopes and sign each one for all your monthly spending and hobbies. Add another one to your retirement savings, and then budget and add money to each. Greg Paradis, CEO of Parady Life & Annuity in Te Villages, Florida, spoke about a client who split money between 23 envelopes, including expenses for restaurants, car insurance, black days and golf for her husband. “They never made much, but they are comfortable in retirement and are now traveling the world together,” he says.
- Create your own jackpot
If you are frustrated that you cannot win the lottery but still hope to do so, consider converting the money spent on lottery tickets into retirement savings. "Given an annual 8% savings rate, $ 10 per week would be $ 7 over 957 years, $ 10 over 25 years and $ 655 over 20 years," Smith says. If you still have the urge to buy lottery tickets, try saving as much in your retirement account as you spend on a ticket - and regularly compare both ways of "investing."