25 ways to save money for old age

It is difficult for a working person to imagine that someday it will be necessary to save, and this often remains in the background. It is difficult to plan something for a long time ahead, therefore, upon retirement, many immediately feel a lack of money. According to the Center for Pension Research, only 38% of people are used to saving for the future, 23% do it occasionally, and the rest of the population does not allocate money at all.

Of course, this is optional. But saving money isn't all that difficult, and you should be able to plan for your future and invest enough money in your golden years. You can turn to a financial advisor who can help you create the necessary assets, but you yourself can do many simple things in order to help you save a sufficient amount of savings in the future.

1. Start planning your monthly budget

If you don't have a well-planned budget yet, then of course it's too easy to spend everything you earn. By putting together your monthly budget, you will be able to see what mandatory payments you have and how much money you can spend on personal expenses. Determine the percentage of your income that you can transfer to the pension fund.

2. Learn to cook

Of course, eating in cafes and restaurants is great. But this can take a significant part of the income, and "eat" the part of the funds that you were going to set aside. In most cases, eating at home will be cheaper. One of the best ways to train yourself to eat at home is to learn how to cook deliciously. Find a cookbook online or borrow from the library and try a few recipes. If you're unsure of where to start, consider taking a cooking class and learning how to cook restaurant meals in your kitchen for a lot less money.

3. Buy groceries at a cheaper store

Most of us only go to a certain store because it is located nearby, or there are nice salespeople, or we just like it there. Regardless, other stores are worth trying. You will be surprised how much you can save by buying from another store or by switching from branded products to regular ones. By summing up the money saved in different places, you can see what you can save well on the necessary products and things.

4. Take advantage of discounts

You can not only change the store for a cheaper one, but it would also be wise to keep an eye on great deals. This does not mean that you have to become a crazy shopaholic chasing discounts, just take a little time to find the right price. By buying at a discount, you will save more money, which means you can increase your monthly pension fund transfer.

5. Save at least 15% of your savings

Most financial advisors advise donating 10 to 15% of your income to a retirement fund. For more confidence, it is better to transfer 15%, but more can be done if you can afford it. Indeed, at certain points in your life, you may not be able to postpone so much. Therefore, when you can, save the recommended amount.

6. Focus on stable growth, not high income

As has been said many times: investment is not a sprint race, but a marathon. When investing in retirement, you should focus on the long term, not on earning a quick income from your savings. You can get significant income in a short time from stocks or other financial instruments, but this cannot continue all the time. A significant part of well-being is, in the final analysis, small goals and objectives. If you do not know how to do this, you should seek the help of a financial advisor. And the sooner you do it, the better.

7. Transfer premiums to a retirement account

In some companies it is customary to pay their employees an annual bonus. And many people usually spend this money, and it would be better to transfer it to the account of pension savings. Annual bonuses can be thought of as additional income rather than cash planned in a monthly or annual budget. According to economic experts, this money is most profitable to invest in retirement savings or to pay off debts with high interest rates, such as credit cards. The last thing you can do with them is go and spend.

8. Save Tax Refunds

Similar to the annual premium, the same can be done with tax refunds. Just like bonuses, tax refunds are also additional income. And while they can also increase income, they will still be most profitable in the long run in a savings or retirement account. Of course, there is a temptation to increase your income right now, but don't get carried away by it.

9. Find a part-time job to increase your retirement account

Of course, earning money is not always easy and possible for those who, among other things, are busy with family life and do not have time for that. But, if you can find the time for this, you can earn money for your pension. There are many ways to earn extra money or find a part-time job. If the idea of spending your time doing a part-time job doesn't appeal to you, then think about an activity that you really enjoy. For example, if you love doing yoga, then why not teach it a couple of times a week.

10. Open a retirement account as early as possible

The sooner you start saving for retirement, the better. It's best to start when you're in your early 20s, but if you're older, don't worry. You can start right now. Ask your employer to make automatic pension contributions from your paycheck. This will help you build up a financial cushion for your retirement faster.

11. Open an individual pension contribution if you cannot contribute to the pension fund

There is also a way out for those who are self-employed or whose employers do not contribute part of their employees' income to the pension fund. You can open an individual pension contribution. There are a lot of such deposits. Which one is right for you depends on your personal financial situation and how you want to keep your savings until retirement. If you are unsure of which to choose, contact a financial advisor.

12. Take advantage of the employer

Many employers contribute a certain percentage to the pension fund. You can take advantage of this. Suppose your employer deducts 5%, then if you yourself donate only 3%, then you are losing money that your company is ready to provide you. Therefore, if you don’t transfer at least 5%, you will never use this money.

13. Combine retirement deposit and other retirement accounts

Over the years, you may work for several different companies and open different types of retirement accounts. In order not to track them all separately, it would be wise to combine them into one. The main reason is the decrease in the number of contributions that will have to be paid to different organizations. Plus, it's easier to keep track of your money this way. Of course, when it comes to investments, there are no two people and situations that are the same, so it is best to consult with a financial advisor before taking important steps.

14. Reduce unnecessary costs

Wherever we go, everything is conducive to spending our money.Therefore, it is not at all difficult to spend more than you need, and sometimes more, if you have. Making a monthly budget and sticking to it can help you avoid these kinds of expenses. And also to reduce unnecessary costs will help unsubscribe from the mailing list of stores. It's very easy to forget about them, especially if you have automatic payment enabled, which will quickly reduce your personal expenses. Focus only on the necessary things, and reduce your desires to a few points that you can pamper yourself with.

15. You shouldn't repay credit cards with the minimum payment

Credit card debt can drag you into debt, making it impossible to save money on your retirement account. It is best to get rid of high rate credit debts such as credit cards as soon as possible. Otherwise, you will have to pay more than the minimum loan payment all the time. The minimum payment will not be able to pay off the full debt, and in the future it will grow. Make it a rule to pay off a little more than you have charged, and you will be surprised to find out how quickly this debt disappears.

16. Find the best credit card rate

If you have to use credit cards, do not sign the first agreement you come across. Do a little market research in this area and choose the card with the best rate or other benefits. Many cards have attractive programs, such as airline miles, refunds on purchases, or some special discounts or privileges. Of course, many discounts and other benefits are very insignificant, but, as in the case of investments, if they are used correctly, they can amount to a good amount.

17. Make an automatic payment to deposit accounts

You can just forget to transfer money to your pension account. To make it easier for yourself, set up automatic translation for this contribution. Then you don't have to think about it. The money will simply be transferred when it is credited to your main account.

18. Never Withdraw Money from Retirement Deposits and Accounts

Regardless of your circumstances, do not withdraw money from retirement accounts before you retire. An estimated 21% of people withdraw money from their retirement account, despite the fact that this is followed by a number of problems, including fines and additional interest. In addition, this contradicts the very essence of pension savings, which imply savings for the future with a small but stable income.

19. Buy used cars

In the first year, the depreciation of a new car is 19% on average. Moreover, the car loses half of this value as soon as you leave the car. At first glance, it might seem sensible to buy a new car that has not yet had an owner, but this is not entirely true. It is more economical to buy a used car. This does not mean that you need to buy some old wreck. The car market offers millions of used cars in excellent condition. And, although they also depreciate over time, you need to understand that they have already lost the largest percentage of the value.

20. Track progress, but don't chase it.

When you decide to save for retirement, don't get hung up on numbers and calculations. Remember that while you are young, you must live a full and interesting life. Do not sit idly 50 years before retirement, so that later you will not regret that you spent your young years bored. The bottom line is that you need to focus on successes and achievements, but not dwell on them. It will be sufficient to control the pension account every few months. If you want to correct it or make significant changes, then it is better to consult a financial advisor. Maintain a sane view of things and spending, which means you must provide yourself with decent capital for retirement, but at the same time, live life to the fullest while you are young.

21. Set the approximate date of retirement

Many do not even think about when it is better for them to retire. Indeed, it is difficult to imagine when you are young, but in fact, it would be wise to plan a rough answer to this question, even if in the future you decide that you will work longer. There is no need to set a specific date. Plan an approximate year or a couple of years. Of course, you can make adjustments over the years.

22. Find a good financial advisor

Consulting with a good financial professional is the key to creating a quality financial plan. And the best counselor is someone who understands what you want and what you want to do after retirement. This is why it is so important to plan and set long-term goals. If you have multiple retirement ideas at once, a good counselor can help plan it out. Don't know where to go? Check with family or friends whom they use as a financial expert. As a rule, the best option is to search by recommendations.

23. Contact your financial advisor at least once a year

When you have a financial advisor and you have drawn up a financial plan with him, then you need to meet with him periodically to ensure that everything is going according to plan. Most experts advise to consult at least once a year. If it seems to you that this is not enough, then you can meet once every half a year. Don't get hung up on what your consultant is doing. But, if you want to have complete control over your finances, then discuss in detail any changes to your financial plan.

24. Give up social benefits

If you do not use Social Security until you reach 66 years of age, then those benefits increase by 8% after that age. That is, the longer you don’t use them, the better. Don't use social security payments if you don't have to. And, of course, it would be best to check with a financial advisor when it is best to do this.

25. Avoid unnecessary and unnecessary debt

Debt can be a rather unpleasant thing, especially if it turns out that it was not a necessity. It is best to avoid debts such as credit cards, unnecessarily large car loans, and other optional and unnecessary payments. The best thing is to live within your means without getting into loans that you don't need. The exceptions are loans for housing, used cars or education. But keep in mind that if you take loans not for needs, but for needs, then you will have to try very hard before you can save for retirement.