After a lifetime of pinching pennies and stretching dollars, we want to retire rich. But with the current economic landscape, you may think you’ll never even get to retire, let alone retire rich. With these 7 money-saving strategy steps you can take charge of your financial future and retire rich. Regardless if your a teenager working your first job or middle-aged and nearing retirement, you can take these steps and retire rich.
It will take planning, discipline, and hard work now so you can fully enjoy a secure financial future.
1. The first money saving strategy step is the most basic: Save more money. We pay our creditors regularly, but we fail to pay ourselves in the form of adding money to our savings account. Save money by paying yourself a set amount each month. The older you are, the more money you need to save, 20% of your income if you are in your 50’s. If you already add money to your savings regularly, add 5% to what you routinely save. If/when you get a cost of living raise from your employer, stash it in a high interest yielding money market savings account. The money you don’t see is money you won’t miss, hide it from yourself in a savings account until you retire.
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2. Take advantage of tax breaks and free money from your employer by contributing to your company’s 401K plan. Contribute the maximum amount that will garner you matching funds from your employer. If your employer does not offer a 401K plan, check with your financial institution regarding their tax-free retirement accounts. A yearly retirement fund contribution of $15,000 earning modest interest will be over half a million dollars 20 years from now.
3. Increase your current income and earn all the money you can while you can. Remember I told you hard work is involved in the strategy steps. Aim for a job promotion at work, take on a part-time job or if you’re a stay-at-home mom, look for a way to earn some income that will still allow you to stay at home (such as web writing) and stash all the extra money you earn into your savings account.
4. Invest some of the money that you are saving. Invest your money wisely into a well-diversified stock and bond portfolio. Use a tried and true investment broker to advise you, not a fly-by-night investment company.
5. You absolutely want to have your mortgage paid off by the time you retire, so stop, or better yet, don’t even start, borrowing against your home equity. If your home mortgage is paid off by the time you retire, you will have several options. You can remain in your home payment-free, sell and downsize, making money through the house sale, or you can rent your home and travel if you retire rich.
6. Set realistic goals about your kid’s college tuitions. Don’t take tap into your retirement savings money to fund their college tuition. Yes, I know, as parents we want to fund the entirety of their college education, but how will that impact your desire to retire rich? Instead, consider applying for fast 1 hour payday loans online. Also, college students can obtain their own loans, work part time and help pay college tuition and/or attend a college that has cheaper tuition. If you can’t fund your kid’s college tuition, tell them early on so they can make plans for obtaining scholarships or college funding.
7. The 7th and final step to rich retirement is taken care of your health. Eat right, sleep right and exercise. Doing as much as you can to stay healthy will keep you strong enough to remain at your job as long as you’d like, it will keep health care bills to a minimum and you’ll also be healthy enough to enjoy the money you have saved for your retirement years.
You can’t procrastinate about your retirement funds!
You can’t count on Social Security being there for you when retiring and you’re never too young to begin planning for your retirement. You can retire rich with these 7 money-saving strategy steps. Now it’s your turn!