Avoid Leaving Money on the Table
One of the most overlooked savings available to many people is a 401(k) plan offered by their employer. Not only can you use pre-tax dollars but in many cases, your employer will match the funds you deposit. Check with your employer and find out what they offer for plans and find out about your matching funds.
Finding Ways to Increase Earnings
While most of us do not have enough free time to work a second job, there are other ways to increase the amount of money you can save towards retirement. Nearly all of us have items in our homes that we could sell. Take a look in your attic, garage and closets and gather all items that may be saleable. Either hold a yard sale or post the items for sale online and put the proceeds into an IRA. An Oklahoma Central Credit Union IRA account may be your best option, contact us today to get started.
Shifting Payment Obligations
As you pay down your credit cards, by paying more than the minimum amount, take the money you are saving and deposit those funds to your retirement account. These modest savings will add up faster than you may think. Another option is to contact your credit card company and negotiate a lower interest rate and add the monthly savings to your retirement plan.
Set up a household budget and follow it strictly. Rather than allocate funds towards going out to eat, use your food budget wisely and cook at home. Coffee in the morning or lunches at work all add up and take away from the amounts you can save for retirement.
Trim Your Tax Refund
Rather than waiting for a substantial tax refund once a year, adjust your withholding and take advantage of plans your employer may offer. In many cases, you can use tax-free or tax-deferred savings plans with pre-tax dollars which can increase your spending power. Ask your employer what plans may be available to you and put those extra withholding dollars automatically into savings.
It is never too early to start planning for retirement; after all, in our golden years, our earning power will be greatly reduced. However, if you start today and take advantage of various ways to maximize your savings, you can look forward to a financially stable retirement. Remember, the longer you wait to start collecting social security, the higher your monthly benefit.