retirement on a budget

Tips for Saving for Retirement on a Budget

December 14, 2021

DECEMBER 14, 2021: Have you been wondering, how can I save for retirement on a tight budget? Although retiring on a small budget may seem like a rough challenge, the right approach, planning and commitment can help you get there. No matter how much or how little money you bring in each year, you can still put away some cash for retirement with some clever tips and tricks to help you along. If you’re on a strict budget, your Retirement Strategy could include key steps such as cutting back on parts of the budget where necessary, moving to employers that offer retirement fund matches, making smart and strategic financial investments and more. These top tips can help you save for retirement while still maintaining a realistic household budget.

Cut Back on Certain Budget Items To Make Room for Retirement Savings

When you need to trim the fat to make room for retirement savings, there are several simple ways to cut back on certain monthly expenses. For instance, consider whether you could spend less on:

  • Entertainment spending and personal splurges
  • Name-brand groceries, eating out and trips to high-end supermarkets
  • Unnecessary or excessive subscriptions
  • Payments for brand-new cars or phones

Start One or More Funds and Save Whatever You Can

Making the most of all the retirement accounts available to you is another way to ensure you save up enough money for retirement. You may want to start one or more retirement funds, especially if you can take advantage of an employer match. Some of the most common types of funds or accounts include:

  • A 401(k) account if offered by your employer
  • A Roth or traditional IRA, or individual savings account
  • An employer-sponsored pension
  • A 403(b) account
  • A spousal IRA
  • A self-directed IRA

Strategize To Help Your Money Grow Over Time

If you don’t currently have any financial investments, now may be the time to start. Simply letting your retirement funds sit in a savings account could lead to depreciation over time and may cost you a significant chunk in potential passive income. Instead, strategize to help your money work for you and grow over time. To accomplish this, you could:

  • Work with a financial advisor to find investments that you feel comfortable with
  • Diversify your current financial assets to spread out potential risks
  • Make more aggressive investments in your younger years and then gradually shift to safer investments as you get older
  • Consider investing in tried-and-true areas such as mutual funds

When money is tight, having a detailed and thorough Retirement Strategy in place is more crucial than ever. Thankfully, even if you’re working with a relatively strict budget, there are still several tips and tricks that can help you stack up enough cash to retire in financial stability and comfort.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.