If you are in your 50s or 60s and beginning to panic about your less-than-ideal retirement savings, you are not alone. Having a smooth and stress-free retirement may seem impossible if you haven't been diligent about savings, or if you aren't sure where you can possibly squeeze out any spare cash.
If you have found yourself in this situation, the most important thing to do is not fret. It is unrealistic and unhealthy to think you can save a mountain of money at the last minute. You can, however, adjust your expectations of what your retirement will look like if you have less to spend than you thought you needed.
Read on for some tricks and tips you can use to maximize your savings and create a road to retirement, today.
Above all, the key point to remember is to prioritize a retirement planner. A healthy amount of fear can be motivating, and you can use that to really light a fire under your desire to save. Have respect for yourself, and especially your future self.
The first step to planning for retirement is to know the scope of your financial situation. Take a look at all your accounts to find how much you have saved in your retirement, pension (if you have one) and savings accounts. Then, assess your liabilities – mortgage, credit card and car payments, debt, etc.
3. Start Now
Start with where you are and what you have, at this moment. You cannot change the past, and starting to save now is better late than never. This choppy market can actually be a blessing in disguise, and a wonderful opportunity to accumulate quality investments.
Once you have an idea of your monthly and yearly spending needs, you can create a budget to cut your monthly costs even further. Take a look back on past banking statements and find areas where you can cut or eliminate costs, such as your morning Starbucks latte or spendy clothing habits.
5. Stay Healthy and Keep Working
Work longer–working longer both increases the number of years you can save and also reduces the number of years you will be withdrawing from your retirement account. Take advantage of any employer benefits your workplace offers, especially health related. If you anticipate having to work later in life, staying healthy, fit and strong is imperative to maintaining good employee status.
6. Sell Money Suckers
If you no longer need to commute to work, there is a good chance you will be eliminating one of the primary reasons you had a car to begin with. Figure out what it costs to own and operate a car for a year–payments, insurance, gas, oil changes, tires, repairs, parking–and dividing by 12. According to AAA, owning and operating a vehicle will cost an average of $8,469 annually, or $706 per month. Depending on where you live, it may cost a lot less to use Uber or take public transportation to get around.
Remember that you aren't only investing in your retirement account, but in yourself and your future. Imagine the kind of life you want to lead in your 70s and 80s and use that as a motivating tool to further your savings. It may not be easy or fun when you feel like you are starting from nothing, but it is possible.
If you need any assistance with building a comprehensive retirement plan so you can focus on building your ideal lifestyle without financial stress, schedule a free call with us today.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.