The idea of retiring seems like something you’ll find only in fairy tales and Sunday afternoon talk shows. But for millions of people, that’s exactly where the reality lies. The current state of our economy and the volatility of the stock market are two very real factors keeping many people from being able to retire comfortably.
Many workers today aren’t even able to save adequately for their retirement because of rising costs and stagnant wages. However, you don’t need to let this deter you from your plans for a frugal retirement. There are plenty of ways to enjoy a comfortable one without breaking the bank or selling your soul at retirement age.
In this blog post, we’ll discuss some money-saving tips that can help you enjoy a frugal retirement. Read on to learn more…
Get a professionally-prepared financial plan
For many people, the thought of retiring feels like a distant dream. But don’t let the idea of retiring be held hostage by the economy. If you wait until you’re too old to start thinking about it, you’ll probably never get there.
The best way to prepare for a frugal retirement is to get a plan in place now. While it might seem like a daunting task, a financial plan walks you through exactly what you’ll need to do to retire comfortably. Choose a professionally-prepared financial plan that guides you through various retirement savings options and helps you determine exactly how much money you’ll need.
Once you have this plan, you can start setting aside money for your retirement. While it might seem like a daunting task, a financial plan walks you through exactly what you’ll need to do to retire comfortably. Getting a plan in place now will make it much easier when you actually need it.
Ditch your high-interest bank account
Some of the best money you can put toward your retirement is in your own hands. You can start by ditching that high-interest bank account and putting the money you currently keep there toward your retirement.
If you currently have a high-interest bank account, you can easily ditch it and put the money you currently keep there toward your retirement. Your money is worth significantly less than you think it is. This is because you are charged interest on it, which makes it worth less every year.
A lot of people think that they are protected if they keep money in a bank, as it is insured by the government, but this is not true. What happens if the bank fails? If there is a bank collapse, they will lose all their money. This is why you should move your money to a low- or no-interest account.
Set up automatic payments to your savings account
Another way to save on the amount you need to save is to set up automatic withdrawals from your checking account to your savings account. Saving 10% of your income each month is a great way to put some money away for your retirement.
For example, if you earn $2,500 per month, you can set up an automatic withdrawal from your checking account to your savings account of $250. That way, you will consistently have enough money saved to keep you going when you retire.
Diversify your investments
The value of each investment will fluctuate. That’s why it’s important to diversify the investments you make in your retirement. For example, if you invest your money in a single company’s stock, that stock could lose its value because of some negative event in the company.
A single stock could lose its value and take all of your money with it. Instead, you can invest in a variety of different companies and industries to reduce the chance that one investment will lose all of its value.
Stick to a budget
The best way to make sure you’re saving the right amount for your retirement is to budget. If you don’t budget, you’re most likely not going to realize how much you’re spending. And, since you’ll likely be spending less than you think, this will mean you’re not saving enough for your retirement.
Budgeting will force you to be more mindful of what you’re spending and make saving a priority. You can use budgeting to determine exactly how much you need to save for your retirement.
Retirement is something most people dream about, but it’s often a long way off for many people. Fortunately, there are plenty of ways to enjoy a comfortable retirement without selling your soul at retirement age. For example, you can get a professionally-prepared financial plan, ditch your high-interest bank account, set up automatic payments to your savings account, diversify your investments, stick to a budget, and so much more.
You might be surprised at how much you can save by simply making these adjustments. And, once you get started, it won’t be long before you’re enjoying the comforts of a frugal retirement.