When you are younger, you can’t even imagine what it will be like to retire. It’s decades away, isn’t it? In the present, many people struggle to make enough money for more immediate costs, let alone a savings account or retirement fund. But, it’s never too late (or early), to start thinking about your golden years. It’s just a case of sacrificing some short-term wants to meet long-term goals. But, if you’re already feeling like time is slipping away, here are 7 strategies that will help you maximize your future nest egg.
1. Save First, Spend Second
It’s so easy to spend money once your paycheck clears in your account. More often than not, if there is any money left over from the month, most Americans will choose to save it. But, that’s not the best approach to take as you might be left with little or none. To kick your retirement savings into gear, take a portion of your earnings and tuck them away at the beginning of your salary instead of at the end.
Using a 401(k) plan is a great way to transform your retirement fund. You can even set this account up so that it withdraws a certain amount of money the day after you get paid. This is a safer way to save, instead of relying on leftover money at the end of the month. If you can’t get a 401(k) plan through your job, you can set up a Roth IRA instead. This will leave you feeling more secure because you’ll know that every month you are actively saving.