People have been forced into retirement by the Great Recession. A large number of these people were not adequately prepared to leave the workforce. Having enough money saved for the future is a very important step in assuring that a person can live a comfortable retirement in her golden years. Here are five tips to save money for the future.
Cut Frivolous Expenses
Financial planners frequently give this piece of advice, but it is true. Cutting out little expenses like a $5 cup of premium coffee each workday could save up to $100 per month. That savings could then be put into an emergency fund or a retirement account to build up for a lost job or retirement.
Contribute to a 401k
Traditional pensions are going the way of the Tyrannosaurus Rex. In their place are defined contribution plans like the 401k. Many people have given bad reviews to these accounts after they lost money in 2007 and 2008, but the truth of the matter is that just about anyone who had money invested lost money in those years. Many employers will match 50 or even 100 percent of the first 3 percent of an employee’s salary that is contributed. This is basically free money. Take it.
With the Internet, shopping around has never been easier. It is possible to research anything from car insurance to tablet computers with a few keystrokes. Getting the best deal on any good or service is a good way to save on expenses, and those savings should go to saving for retirement.
Open an HSA
One of the biggest expenses that can really hit people is healthcare. Those who are young can benefit from opting to open a Health Savings Account to complement a high-deductible insurance plan. While this account can only pay for medical expenses like a doctor or dental visit at Azarko Dental Group, it can also pay for insurance premiums in the case of a lost job or during the gap between early retirement and Medicare.
Many people have hobbies. At times, these hobbies can pay off. Those who like to create crafts can sell them for a profit. Any income that comes from these side businesses can go into a retirement or emergency fund that can help with future expenses.
While retirement can seem like a scary concept for those who are unprepared, it is possible to prepare. By starting early, many people can have the retirement that they have always dreamed about. Of course, not starting is the worst mistake a person can make.