Are you living day-to-day or from paycheck-to-paycheck? If you are, you are not alone. Many Americans are now finding themselves in
a financial crunch. At that same time,
financial advisors are still encouraging Americans to save for retirement. This is where you may feel hopeless. There is, however, good news. That good news is that there are still ways
that you can save for retirement, even when experiencing financial problems
right now.
The first step you should take depends on your age. If you are between the ages of forty and
fifty, you will want to closely examine your retirement goals. This includes both your wants and your needs. How much money do you need to retire? To determine an amount, look at your living situation. How much will it cost you to survive with the
basic necessities, including food, shelter, health insurance, and transportation?
Next, examine your retirement goals or
wants. Do you want to start your own
business? Do you want to travel? Is there are hobby you want to take up? Examine the costs of those activities.
If you are between the ages of twenty and thirty, your retirement
goals are still important. Of course,
you will want to sit down and determine how much money you need to retire, but
this can also wait a few years. If you
are on a tight budget, it may first be a good idea to examine ways that you can
save money for retirement. As an
important reminder, there will need to be a point in time when you will examine
your retirement years and what you want to get out them.
As for how you can start saving money for retirement when
living day-to-day, you will want to track your spending. You should do so for at least a week. You will want to record every single purchase
that you make, including a small bag of chips or a cup of coffee. At the end of your week, look at your
spending list. Circle all of the items
that you can live without or make other arrangements for.
Once you have a list of items that you can live without, it
is time for you to take action. This
action involves cutting corners and eliminating unnecessary purchases. The good news is that you don’t necessarily
have to go without. You can still save
money by taking a few simple steps. For
example, instead of buying a cup of coffee on the way to work each morning,
make your own at home. If you are known
for buying new clothes too often, consider shopping at a department store or a
thrift store, as opposed to a high-end clothing store. There are so many different ways for you to
save money.
Now, saving money is great, but only if you put that money
where it needs to go. Do you have a
401(k) plan? If so, start applying your
saved money to that plan. If you do not,
open up an Individual Retirement Account (IRA).
There are other options that you have as well, such as a savings account
at your local bank, stocks, and bonds.
Some of these methods can be risky; therefore, you will want to spread
your money out.
As you can see, there are a number of ways that you can save
for retirement, even when you are on a limited budget. Whatever approach you take, be sure to stick
to your plan.
