Take Advantage of the Extra Benefits in Your Retirement Plan
Do you feel as though you still won’t have time to save enough money? Take advantage of extra benefits in your retirement plan such as catch up contributions.
After you turn 50 you can add an extra $6,000 to most 401(k) accounts or $1,000 to an IRA. If you’ve fallen behind, now’s the time to tackle your nest egg like never before. Any raise or bonus should go towards these savings.
Yep, we really mean it! Even if you were looking forward to going on a vacation with your bonus, it’s best to simply set the extra money aside. Think of the added benefits. You could still take that vacation when you retire without having to worry about going back to work or working on an assignment!
All these little shifts in mentality will make it easier for you to stop splurging when it matters most.
Reinforce Your Savings Habit Through Automation
Good intentions may not get you very far. Even if, at the start of this savings plan, you start off strong, your motivation could taper off over time. So instead of relying on your force of will, use automation to help bring you closer to your goal.
Individual accounts, IRAs, 401(k)s, these all have automation options. These work by pulling money out of your checking account on payday. Before you even have the chance to slip and spend more money than you should, those dollars will be tucked away neatly for later use.
Set a note on your phone or scribble one down and shove it in your wallet to remind you to start the process. The earlier you do, the better! Trust us, your future self will be thankful for it even if right now it might seem like a headache.
