Being able to save for retirement when you’re behind may seem impossible. You might think you’ll never be able to retire.
I know how you feel!
Times are tough, and it gets challenging to manage your current expenditures let alone save for retirement.
Being able to put some money aside for retirement is a privilege which not all of us can afford.
Saving for retirement is even harder for women because of the gender pay gap. Before you know it, you’re in your late 40s with no retirement savings plan in place.
At our age, we could panic and think that it’s too late to start a retirement plan, but it’s always better to be late than it is to be sorry we never started at all.
So let’s look at ways to increase our retirement plan.
1. Fund Your 401k To The Max
If your workplace has a 401k plan and you haven’t been investing in it as much as you should, then now is the time to move ahead full throttle and direct all your excess funds to the 401k plan.
The reason I recommend investing in the 401k plan is that it is much easier and more convenient to invest in. You also end up avoiding many tax payments quickly and effortlessly.
Once you are 50 or older, you can also make catch-up deposits as well which means that you can make up on the lost time. Catch-up deposits are an excellent opportunity for you, so it’s best that you utilize them fully.
2. Remake Your Portfolio
In the financial world, there are many different types of portfolios that we can invest in.
However, as we age, it is recommended to opt for more conservative forms of savings.
Individuals that are well into late adulthood generally find it incredibly hard to bounce back after sustaining heavy financial losses.
Therefore it is better to invest more of your money in bonds and less in stocks.
A conservative portfolio may consist of 60% bonds, 20% stocks a, and 20% cash or cash equivalents.
3. Start Your Own Business
The skills and experience you acquired in all your years of life, both professionally and in general are of some value.
Your business can be your retirement plan because it can help you capitalize on something you are good at.
You don’t necessarily have to put in much capital to start your own thing. Starting a blog and turning it into a business can be very cheap.
In fact, sweat equity makes up the majority of your cost in the beginning of a blog.
Depending on your previous experience, you could set up an online consultancy service or something of the sort.
This would be the perfect time to implement living your passion and sharing your work and how-to’s in a blog.
You could blog about painting, knitting, sewing, faith, family, food, and so much more. Being able to share your passions with others is so fulfilling.
If you’re interested in starting a blog, check out my article How to Start a Blog Right Now. In it, I’ll share with you exactly what you need to do to start a money making blog.
You might also be interested in these free resources to help you start a blog:
- New Blogger Focus Guide
- A Simple Template for an Organized Blog
- Free cheat sheet with over 120 ideas for blog posts.
The best thing about working like this is that you can completely take it as a side business and only invest in as much time as you can give. You can be your boss and make all the decisions yourself.
Your own business will help you generate additional income, and that extra income can be used to speed up your savings plan. Ideally, you could directly send all that you earn from your business to a savings account.
4. Decide which Retirement Savings Plan You Want
There are multiple saving plans out there, and you need to carefully look at each one that best fits your needs and requirements.
What matters at this stage is where you place your priorities. Does having a retirement plan that covers health as well as sound better to you, or does having an everyday vanilla retirement plan look like the better option?
Quite naturally, there is no right or wrong answer with decisions like these. Different retirements plan work differently, and various retirement plans suit different individuals.
It all boils down to what you prioritize and what you think will provide you with the most value.
5. Save, Save And Save for Retirement Some More
While this might sound like the most obvious of all, it is incredibly essential to save whatever you can and move all those funds directly in your retirement account.
You will need to fall out of the habit of impulse buying, and you will also have to drop out of the practice of showering your children or grandchildren with expensive gifts.
Not always easy to do especially for the grands! Just keep in mind your end goals and know that the best gift you can give them is time.
At this stage, you need to prioritize yourself and make your future goals your number one priority.
It’s essential for you to be able to afford a roof over your head once you retire; therefore, you need to become diligent in saving.
Avoid eating out as much as you can. Cook your meals at home and focus on eating fresh veggies. Home-cooked meals are healthy and don’t contain all the harmful toxins that our fast food contains.
By eating healthy, you will also be doing your body and your bank account a favor because, through eating healthy foods, you will be able to protect yourself from multiple types of disease.
I’m on medication for chronic pain. Recently, I started Weight Watchers (WW) Online as I also need to lose some weight. Within 3 weeks, I’m almost pain free and talking with my doctor about cutting back on my dosage.
Healthy eating has so many benefits health wise and financially!
If you’re pressed for time, you can also make your meals in bulk over the weekend. This will save you tons of time, but it’ll also save you money by planning ahead and not eating out.
It’s a good idea to take your own coffee to work rather than drive-through Starbucks. You can save loads just by making your own, plus you can make it exactly the way you want it!
Retirement may look scary now, but there is no reason for you to lose hope even if you’re late to the savings party.
If you show dedication to your goals, then you will also end up able to retire on time or even early just like individuals that have taken years to save up that much.
All you need to do is show up and not give up! Good luck!
You Might Also Like:
- How to Live Intentionally So You Can Retire on Time (or Sooner)
- 10 Fun Ideas for Retirement Income
- How to Start a Debt Snowball in 4 Easy Steps
- Free Debt Snowball Calculator