The Road Towards Retirement: 4 Money-Saving Tips

Jumpstart your plan and the easier it will be to retire when the time comes.

(SALEM, Ore.) - As the largest generation races towards retirement — with as many as 10,000 Baby Boomers leaving their jobs each day — America faces a crisis. People of all ages, including those born between 1946 and 1964, aren’t financially prepared to retire.

The time when the majority of workers had guaranteed pensions from their employers is over. Now, in the absence of these plans, most Americans have to rely on their savings to support them in old age, and it’s proving difficult.

Financial advisors suggest retiree hopefuls have at least 10–12 times your income saved for your golden years. According to the latest GoBankingRates study, a large portion of the population isn’t anywhere near this savings sweet spot.

Roughly 30% of survey participants aged 55 and above had absolutely no savings set aside for retirement, while another 26% admitted to having less than $50,000 set aside.

If the thought of entering your old-age with barely any savings to support you is a scary one, you aren’t alone! People from all generations are worried about how and when they’ll retire.

It can be a challenge, but when you use this guide to help you sock away some money for your retirement, you’ll be better prepared for a life away from work — even if you’re on a tight budget!

1. Start Early
   When it comes to retirement savings, time is at once your biggest friend and your biggest foe. Retirement savings relies on compound interest to help you establish the funds you need in old age. While this piece of advice benefits the young the most, it needs to be said to every generation. Whether you’re a Millennial just entering his or her career or a Gen Xer contemplating his or her future, start squirreling away money now. The earlier you can start setting aside money—even if it’s only $25 a week—the better equipped you’ll be to retire on time.
2. Make Sacrifices
   We all want to live in our dream home downtown with a hot car and the latest smartphone, but making them a reality now can put your well-being in retirement at risk. You need to start thinking about your priorities with great care. If you expect to contribute regularly to savings despite only ever working contracts, you’ll need to make concessions. Instead of living downtown in a trendy neighborhood, consider a nearby suburb from where you could commute easily. Lease a durable yet inexpensive car. Unlock a used cellphone and pretend it’s the latest generation.
3. Use a Budget and Stick with it!
   A budget is the greatest financial tool you can have, regardless of your goal. It’s a plan that lets you know how much you make and how much you spend in a given month. While you might be aware of how much you make, you may not be conscious of all the unnecessary purchases you make day to day. When you tally all of your expenditures and compare it to your net income (the amount you take home after taxes and other benefits), you can see where you’re going wrong. Take the time to see if you can eliminate any thoughtless spending and redirect it towards your retirement.
4. Look at All of Your Financial Options
   The latest studies reveal Baby Boomers are heading into retirement with over $100,000 in consumer debt. In many cases, this is owed to a variety of lenders and credit cards. If your debts are starting to climb higher and higher each year, you should speak with a financial advisor to see what you can do to pay these off. Together you can come with the best plan for tackling this debt.

When your debts are minor and don’t exceed $1,000 but are still owed to a variety of lenders, you may want to consolidate your debt by usinginstallment loans. Owing different amounts of money to a long list of companies can confuse your finances.

When you have to speak with a separate representative from each of these organizations about your profile, it’s easy to mistake one debt for another.

By consolidating your date, you’ll owe just the one lender that facilitated your advance instead of a variety of different companies. Lenders such as MoneyKey make arranging such a loan incredibly convenient, so you can streamline your own finances without any complications.

Their installment loans online are simple to apply for and just as easy to repay, as the entire process from start to finish is completed over the web. Best of all, you’ll only have to communicate with MoneyKey and learn about easy ways to borrow money without all the hassle of going to a physical location.

Preparing for the future is never easy and changing economic factors are making it harder with every year. If you worry about whether or not you’ll be able to retire when you’re 65, jumpstart your retirement plan with these 4 money saving tips.

The sooner you commit to your future, the easier it will be to retire when the time comes.

Source: Salem-News.com Special Features Dept.