Retirement can seem so far off or such a big, intimidating concept that lots of people avoid the subject altogether. Instead of avoidance, help take control of your retirement by following some simple tips to get you started.
The standard advice is to save between 10-15%1 of your gross income for retirement. A more practical way of looking at retirement savings? Save what you can, and the earlier you start, the better.
Here are 7 little ways to help boost your retirement nest egg:
Make a budget: Planning ahead is Money 101, and your first step is establishing where your money is going every month. Include what you’re able to comfortably set aside for retirement.
Pay yourself first: Once you’ve established your monthly budget, set up an automatic deposit from your paycheque to a separate retirement savings account.
Say bye-bye to debt: Pay off high interest debt first, and make it a priority to avoid taking on more debts.
Cut back in small ways: There are endless ways to cut back on those small everyday expenses. For example, consider selling your car and using a vehicle sharing service instead, start cooking instead of eating out, or take your own coffee to work.
Better benefits: If you’ve been thinking of making a job or career switch, look into the retirement benefits offered.
Bank your bonus: If you get a bonus, redirect it to your savings. If you get a raise, keep your expenses the same, and bump up your savings. This also works with your tax return.
Taxes: Put your tax return directly into your savings once you receive it from the government.
Simple ways of setting aside money for your retirement can make all the difference.
A little can do a lot.
The information in this article is not to be relied upon as tax advice for specific situations.
1Ultimate Guide to Retirement: https://money.cnn.com/retirement/guide/basics_basics.moneymag/index7.htm (Feb 2018)