- Kimberly Stone
Want to retire someday? Here's how to save more now
We all want to eventually retire from the daily grind and do the things we may have put on hold during our working years, but what are you doing to make your dreams come true? You can never start too early, but you do have to start! Any amount you save now is more than you would have had without making saving money a part of your lifestyle.
In the quest to save more for retirement, here are some questions to ask yourself to help you get started and stay on track:
How much do you need? The number of years you have before retirement will help determine how much you will need to invest each month to reach your financial goal. Fewer years until retirement will likely mean more robust goals than if you are still near the beginning of your career.
Is your goal realistic? Make sure that your retirement savings plan is reasonable. If your goal works out to 10 to 15 percent of your monthly income, it should be achievable. But you may need to cut expenses to free up more funds for saving.
Are you saving enough from each paycheck? Try to treat your savings as your most important monthly bill. Write a check to savings first, or have your savings automatically deducted from your checking account or paycheck into a retirement investment plan.
Are you tracking your expenses? Another way to maximize savings is to log your expenditures for a few months. This is a simple way to spot unnecessary or wasteful spending, so you can easily identify potential cutbacks.
Do you feel in command of your savings? When it comes to saving, think "control." Carefully govern the use of your credit cards. The amount you pay each month in finance charges could go to savings instead. Also, regulate the use of your debit card. Get in the habit of giving yourself a fixed cash allowance for incidentals or entertainment, and then stick with it.
The key to having enough money for a comfortable retirement is to become a serious saver. Start saving more today, commit to saving consistently and automatically, and save as much as you can.