Boost Your Retirement Savings

Have you ever thought about what your retirement will look like? Do you envision travelling the world, pursuing a passion or living the simple life? Designing the life you want in retirement can be a huge motivating factor in saving for retirement.

Throughout our lives, we save for a lot of different things. Small things like a new video game or bicycle to more ambitious goals like a new car, a wedding or a down payment on a house. Savings vary from person to person and range in size and scope, but it’s likely that your longest-term savings goal will be your retirement.

Saving for retirement can be challenging, especially for members who a long way off from retirement. However, you can boost your retirement savings by practicing the same good money habits that apply to smaller savings goals.

Savings tend to add up a lot more when there are long stretches of uninterrupted time in which they accumulate and compound. Eliminating obstacles that threaten those ideal saving conditions is key, obstacles like high-interest debt. Do a little research on potential consolidation or refinancing options – you might find a way to pay down your debt more efficiently and free up some extra funds for your savings goals.  Having a healthy emergency fund in place so you don’t have to dip into your savings for an unexpected cost is also healthy.

Increasing contributions to your savings goal means decreasing your monthly spending. If you haven’t made yourself a budget yet, that’s probably step one (see It All Starts with a Budget article). Spending less doesn’t necessarily mean being super-frugal. You’d be surprised how much you can cut spending by packing lunches, looking for inexpensive or free things to do, or even skipping that morning coffee purchase. Even trying a monthly challenge to see the impact of spending a little less might be worthwhile. Understanding the give-and-take of budgeting is a skill, and it’s easier to cut spending when you can put it in the context of achieving a goal.

Another thing that can up your retirement savings is not necessarily adjusting your lifestyle as your salary rises. Instead, increase the amount you contribute to your savings goals. There’s nothing wrong with rewarding yourself from time to time, but limiting your living expenses will free up more resources for you long-term savings goals.

Good money habits will create a routine that motivates you to find a few more dollars to put toward retirement. Even little changes can make a huge impact on a long-term savings goal that has decades to compound and grow. Choose a couple of tips to put into practice this month, and notice the impact it has on your budget.