Retirement no doubt feels a long way off for you, but you may be surprised how quickly you find yourself in your 60s and wondering what’s next. Without a retirement fund, you can end up dependent on government help, which is often being cut, which can leave you in poverty when you are older. Luckily, there are ways to avoid this fate, so here’s how you can boost your retirement fund and build a nest egg for later years.
Look at investment options
If you are already putting money away, but finding it’s not performing as well as you’d like, then you may want to look at investment options such as SMSF loans. This can help you make the most of the money that you save.
Cut back on expenses
Even some small sacrifices can help you achieve your savings goals. Try to cut back your expenses, then use the saved cash to put into a fund. Even if your budget seems tight, you can often cut expenses by:
- Eating out less
- Saving on your utility bills
- Downsizing if your home is too large
- Spending less on holidays and travel
- Spending less on impulsive purchases
While it is sometimes annoying to have to cut back on things, it’s important to strike a balance between enjoying life and saving for the future.
Set yourself a goal
It can sometimes feel like you aren’t putting much away, and that it won’t make much difference, but if you look at future projections, you can see how even a little can make a difference.
Set yourself a monthly savings goal and then work out how much you’ll have in a few months, a year, and at retirement age. You may be amazed how much you could potentially make. Of course, you can also make your money work harder by investing, but it’s up to you whether you want to take this route or you’d rather just do things slowly and steadily.
There’s no one easy way to save for retirement. Different approaches work for different people. Some people like the excitement of investing, while others prefer a slow and steady approach. Whatever you decide, don’t delay starting to save. The earlier you start, the easier it is, and the more interest you can accrue over time. You can then enjoy your retirement without worrying all the time and do the things you’ve always wanted to do.