Ultimate Guide to Save More for Retirement

by Redeeming Riches on March 8, 2015

Typically you need to work to make money. Saving your money over the course of your career is how everyone saves for retirement but what if you could have your money work for you on your way to, and during, retirement.

save-more-for-retirement-nesteggBefore we dive into the tips here are a few points to remember

  • It is never too early or too late to start saving for retirement
  • When first starting to save your main focus should be saving as much as you can
  • If you are nearing the point when you are ready to retire try to increase the amount that you are putting into savings

Let’s take a look at 10 tips that you can use to retire with more nest egg

Start Saving

Ok so this is a bit of an easy one but the first step to increasing the amount in your savings account is to start your savings account! In order to get your money to start working for you you need to have money to work.

Consider investing in stocks

No matter what your age is you may want to consider investing in a few stocks. As you get older typically you want to invest less in stocks but it can be a smart move. As life expectancy grows people are outliving their capital. Investing in stocks may create additional income as opposed to preserving it.

Open an IRA

One of the easiest ways to create additional open or add to an additional retirement account.

save-more-for-retirement-roadmapContribute to your 401(k)

If your employer offers you a 401(k) plan you can contribute pre-tax money, which is a significant advantage. This will allow you to invest more without feeling the hit to your monthly budget. Please remember that if your company only offers a Roth 401(k) your post tax income will be used so you will need to determine if that is a smart investment for you based on your tax bracket.

Meet your employers match

If your employer offers a 401(k) match make sure that you contribute at least enough to take full advantage of that. If an employer offers to match 50% of your contributions up to 5% of your salary. That means if you earn $50,000 a year you would contribute $2,500 to your retirement plan, your employer would match $1,250. That is basically free money.

Automate your savings

One way to help you save is to automate what you are willing to contribute. This is a way for you to help yourself grow your nest egg without even having to think about it.

Set a goal

Knowing what you will need to save will not only help you stay on the correct path but also will make it more rewarding once your end goal is reached. Set some benchmarks along the way to help yourself stay committed.

Save extra funds

Got a little bit extra this month? Stick to your budget and don’t spend that money, instead invest it. When you receive a raise remember to increase your contribution. Treat yourself to something small as a reward but try to contribute at least half of the new money.

Consider delaying Social Security as you get closer to retirement

This is a pretty important one. Age 62 is the earliest that you can begin receiving Social Security benefits but for every year that you wait (until 70) your monthly benefit will increase.

Do your research

Our last tip is just about as simple as the first. Here is an article written by Joe Udo founder of Retire by 40. Using people like Joe as a resource is a fantastic way to learn as much as possible about how to save and grow your retirement account.

What have you learned about saving for retirement? Are there any tips you would like to share with us?

P.S. Another spot to start your research is taking a look at our retirement section of Redeeming Riches

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