Investing for Your Future on a Budget

It’s never too late to save for retirement. If you are rapidly approaching your retirement date or have already retired, it’s important to have extra to save for what lies ahead.
Saving and preparing for the future doesn’t always require having deep pockets. There are several things that you can do to save for retirement without having to break the bank. Here are three simple tricks to help you get started.

Keep the Change

This is a simple trick that can help you save a lot of money without even really noticing. For example, some people have daily routines such as buying a bagel and coffee. Let’s say your total is $4.25 for your items. 296-1256156376Oaw9You can give $5 cash for the items purchased and put the 75 cents change in a safe place. This may not seem like much, but over time you will be surprised at how much money you will have saved. Even if you only have a few years left until retirement, making this a habit can result in hundreds of extra dollars in your retirement savings.
If you prefer online banking and debit cards, Bank of America has a program for you. With a checking and savings account with Bank of America, you can enroll in a Keep the Change program. This program will automatically transfer your change from cups of coffee, groceries, or other purchases into a separate account that can help you supplement your retirement savings.

Pay Yourself First

holiday-beach-39831284851825ZDyBFinancial security during retirement is too important to neglect. Now is the time to prioritize your retirement savings over less important matters. In order to know how much you can pay yourself, you will first need to plan a thorough budget. This budget will help you see what portion of your income will go to your bills, mortgage, car payments, groceries, etc. When you know how much of your income is going towards those items, you can plan how much you are able to save to reach your retirement goals.
The top benefit of paying yourself first is that you will not even miss that money. It will be in your savings account, giving you the satisfaction of saving and investing towards something meaningful. If you feel like you haven’t saved enough for retirement and need to catch up, try putting aside $100 from each paycheck. If you get paid weekly, that would be $400-500 a month and $5,200 a year. That may not seem like a lot, but if you do that for a few years, it can add up fast.

Be Patient

Lastly, be patient with the whole process. Saving money in small amounts like we have suggested can be stressful, but it will be worth it. Don’t get frustrated and commit yourself to doing whatever it takes to make your retirement years count.

Safeguard Investment Advisory Group