Retirement Saving Tips For Late Savers

shutterstock_150570767Some people do not realize the need to save for retirement until it may be too late. It is a good thing if they realize this at a time when they still have something to do about it. No matter how late it may be in trying to save for retirement, any effort to do so can still have a significant effect. But this time, people may need to make more haste in doing so. In order to save up more for retirement, here are some options that people may consider.

Taking a second job or extra work for increased revenue

The best way to increase your retirement savings at the latter stages of your working life is to find extra work to increase your revenue stream. The added earnings can help increase the money you can save up for retirement. It may be an odd job or extra paid work you take during the weekends. Increasing your earning capacity in any way can help you end up saving more and prepare for a better retirement if you are a late saver.

Find some old items to sell

Another way to increase the money you can save up for retirement is by finding different things to sell in your home. You may be an avid collector or can create something as a hobby. You can try selling those on the side. The money you earn can then go to your retirement fund to further increase the amount you can save.

Downgrade your lifestyle

If you cannot find something to help you increase what you can earn on a regular basis, saving what you make is the next best thing to do. One way to do this is by downgrading from the current lifestyle you follow. You may have a job that allows you to do and afford a lot of things. You may be following a current lifestyle that makes you spend more of your hard-earned money. When you finally realize that you only have several years left to save up for your retirement, you may need to save up more. Downgrading to a more frugal lifestyle will help you set aside more money for your retirement fund. You can change your purchasing habits. You can set aside the money that you previously planned for a costly vacation for your retirement fund. Since you are considered a late saver for retirement, there are consequences. If you are really serious about saving as much as you can for retirement this time around, lifestyle changes may be essential.

Consider saving money from your home.

Your home can be an important asset for your retirement. But before you get there, you still need to consider the home mortgage payments you currently pay for. Home loans can eat up a chunk of your savings considerably, especially if you are one of those who have bought a more than modest home. If you feel that you can save considerably by reducing your home loan payments, there are two options available for you. You can either sell your current home and downgrade to a more affordable one. This will lessen your mortgage payments considerably to allow you to save more. You can also have your home loan payments restructured if possible. You can try refinancing on a lower interest rate to reduce your payments so you can set aside more money for your retirement fund.

 

Posted by Ardent Editor on Jun 3 2014 in Financial Planning Tags: , ,

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