2. Focus on retirement savings in your budget
Living on a budget can help make sure you’re saving enough for retirement, especially if you see investing for the future as a must-have bill.
Instead of making retirement savings something you do with the money you have left over, commit to saving a certain amount each month and budget for it with your mortgage or rent, debt and mortgage payments. other essential expenses.
All that’s left after you have budgeted for retirement savings and necessities may be allocated to discretionary costs.
3. Invest your savings
Finally, many people enter some unexpected money outside of their regular paychecks at some point during the year.
It can come from a tax return, a work premium, a cash gift for a birthday or vacation, or a host of other sources. Whenever you get money that you haven’t yet allocated to a specific need, make a commitment to put it in your retirement accounts so that it can work for you over time.
It is difficult to do this with a 401 (k) because you have to set up contributions with your employer. But you can easily transfer money to a Roth or an IRA at a brokerage firm whenever you want. This is one of the many good reasons why you might want to use one of these retirement savings accounts in addition to a 401 (k), if you have one. IRAs also offer more investment options than most 401 (k) and may have lower fees.