It doesn’t matter if you are just beginning your career or if you are approaching retirement, there are still ways in which you can potentially make your nest egg grow. When you are planning for retirement, the reality of it is that the earlier you begin investing and saving, the better it will be, due to compound interest. Even if you haven’t started or are late to begin, it is critical to understand that you are not the only one. There are still steps that you can take that will increase your retirement savings.
What are You Going to Do?
Many people dream of traveling when they retire. If this sounds familiar, how exactly, are you planning to travel? Will you fly around the country? That could get expensive quickly. Where will you stay? Hotel bills add up quickly too. Maybe that is why motorhomes are so popular. Motorhome loans can be easy to get and you will have the freedom to go where you want, when you want.
All of that being said, you still need to plan and invest for your retirement to be able to retire and go where you want, when you want. You can make it a goal to visit all of the national parks or each NFL football stadium… whatever floats your boat. This activity is #2 on a list of things to do when you retire put out by US News.
You might decide that you will spend your final years in the home that you built. Constructing a home is one fantastic way to plan for your retirement. You will likely have it paid for by the time you reach retirement age… or be close to it. This will leave more money for the other things that you want to do in retirement. Also, you will be able to sell it for much more than it cost to build it. This will give you a tidy little nest egg to fall back on should you need to. Also, there is always the option to get a reverse mortgage, which will provide you with a bit of cash when you need it.
Make Making It Happen a Priority
Anytime you want to increase the chances of making something happen, you need to make sure that it becomes a priority. This is especially true when it comes to planning and investing for retirement. Consider the reasons that having a comfortable retirement might be appealing to you, and then decide the reasons why you need to stick to the plan to make it happen. You need to determine what you want your money to do for you. Especially if you want to be successful in that endeavor. Your first step should be giving your contributions to retirement priority over other types of spending.
How Much do You Need?
The Employee Benefit Research Institute has determined that more than ½ of the working American population hasn’t even calculated how much they will need to save if they want to have a comfortable retirement. You really need to determine how much you will need, and there are plenty of free online calculators that can help you with this. Once you have determined this number, you need to determine how much you need to contribute each pay period in order to reach that goal. Once you have determined how much more than you are already contributing will be needed to meet that goal, you can increase what you are currently contributing.
What are Your Current Expenses?
Once you know how much money will be needed for retirement and what contributions you should be making, it is time for you to find that extra money. The first step in doing this is to take a look at what your current expenses are. Quite a few financial experts estimate that the typical household wastes about 10 – 15% of its income on a monthly basis. Take a good hard, honest look at where you are spending your money. Look for where it is being wasted. (Hint – you can probably make coffee at home and save $5 a day.) Stop spending your money on the things that are not necessary and put all of that money towards your retirement.
By doing these few things, you will be able to have a comfortable retirement and the ability to have the money to do the things that you want to do – like travel.