M is for Money

How do you find money to save for retirement when you have so many needs today? There are bills to pay and kids to feed, these concerns are concrete and immediate, not decades away. Unfortunately, ignoring the future won’t stop it from arriving. In fact the pain will be much greater the longer you delay. It is best to start now, even if you can only save a modest amount. Once you start, there are many ways you can increase your retirement savings.

Raises

Most of us get regular raises, but have little show for it. Our spending increases to match our new income and we never seem to get ahead. It’s time to take a new approach, use some of that raise to fund your retirement.

Say you get a 3% raise next year, why not take 1% and put it towards retirement. You’ll never miss that money, so it’s a painless way to increase your savings. Even if you have nothing saved, start today with just 1% of your salary and increase your contributions by 1% each year. In 10 years, you’ll be saving 10% of your salary – enough to start a nest egg without sacrificing today’s needs. This slow and steady increase is a pain free way to ramp up your savings.

Found Money

Do you have money coming into your life beyond your regular salary? It could be cash gifts you receive, rebates and refunds or side income from a hobby. If you can’t find any way to save your salary, or you are not saving enough, you can use this extra “found money” to build up your retirement funds.

Debt Payoff

Like a lot of people, I’ve dealt with debt. I know how hard it is to save, especially for retirement, with debt hanging over your head. But, once you’ve paid it off you are free to put your money to better use.

Recently I paid off our dog’s medical debt, I then turned around and increased my 401k contributions by 2%. Without that bill, I can save more money and still have more to spend. Whenever your situation changes, either a debt is paid off or your expenses are reduced, use that extra money to save for retirement. Don’t allow a new expense to take its place.

Increase Your Retirement Savings

Our financial lives are fluid and dynamic, your income and expenses will change with time. Along the way, you will have the opportunity to adjust your spending priorities and increase your retirement savings. It’s all about finding those opportunities and using them.


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