For young workers, the cost of paying for the house, the children’s education, student loans or travel, have caused it to be increasingly difficult to allocate money for retirement.
If you’re approaching 40 with no money in retirement savings, maybe it’s time to start to find a way to have money for old age.
The good news is that There is no perfect age to start and you may still have several decades in the workforce ahead of you. Therefore, the sooner, the better.
Instead of stressing over the time you’ve wasted, focus on what you can do to improve your financial outlook long-term.
If you make an effort to inject more money into your savings and invest strategicallyyou may end up with a lot of cash to fund the retirement of your dreams.
3 tips to help you save
1.- Look for a large expense to cut
It is not necessary that the whole family move to a cheaper neighborhoodbut yes, for example, moving from a two-car household to a one-car household.
That action could release thousands of dollars every year for your savings.
If that’s not feasible, look at other big costs that can be cut. If your family normally takes a $6,000 annual vacation, cancel it this year and use that money to maximize your IRA ($6,000 is the annual contribution limit for workers under age 50).
These kinds of sacrifices are not easy. But without that, you may have to make even harder sacrifices in retirement.
2.- Increase your income with a second job
In accordance with USATodaythere’s a lot opportunities to get a job in addition to the main. You may find that working a second job and increasing your income is easier than having to cut back on expenses at this stage of your life.
3.- Make aggressive investments
Another option is to be an unconservative investor. If you’re currently trying to catch up on retirement savings, it’s possible to do it with big, quick wins.
While stocks are much more volatile than more stable investments like bonds, also tend to generate higher returns. And accumulating shares could help you make up for lost time if you’re behind on building your savings.
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