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How to Save Enough for Retirement

05/01/2020

 You Doing Enough to Save for Retirement?

We all have big dreams when it comes to retirement, whether you plan to travel the world, spend your days kicking back on a beach, or just want to have quality time with family in the comforts of home. However, in order to afford your dream retirement plan, you need to start saving early. While simply stashing away money here and there might seem like a good start, plenty of other tasks can end up making a big difference. Consider these tips from Carthage Savings & Loan to ensure you’re saving enough money for retirement.

Understand Your Goals

To live the retired life you imagine, you'll need to have a solid idea of what that lifestyle will cost you. For instance, if you imagine a relaxed retirement without any large expenditures, you won't need millions in your retirement account. However, it's always smart to plan for emergencies, as well as having some money set aside should exciting opportunities arise. Speaking with a financial manager or advisor can help you evaluate your goals and better estimate how much you should be saving.

Budget and Save

These two tasks seem simple but can easily be overlooked. Budgeting involves evaluating just how much money you’re spending on bills, loans, utilities, gas, groceries, and more. It's important to take these monthly expenses into account when budgeting for your retirement, as they are generally consistent over one’s entire life and probably won't be going away anytime soon.

Meanwhile, saving comes in several forms. One thing that can make a noticeable difference over time is saving on regularly used items and expenses. If you go out to lunch every day, try bringing food from home a few times per week, which may very well save you thousands per year. Little changes like this can really add up when preparing for retirement.

It's also helpful to place extra money directly into your savings. While getting a bonus at work or a big tax return is exciting, putting that money into your savings account helps you prepare without having to stretch yourself too thin.

Take Advantage of Special Plans

Retirement plans, such as 401ks and IRAs, are structured to help you save and invest wisely. Contributing to these is a great way to save – and in more ways than one. Because the money is pre-taxed, you'll be able to bring home more in each paycheck than you would if you simply put the same amount in savings. Most employers will even match a certain percentage of your retirement plan, which means free money toward retirement.

If you are a little behind on saving, you'll be glad to know that those over the age of 50 can make catch-up contributions, allowing them to add more to their retirement plans. Remember, it's never too late to start saving.

We’ll Help You Get Started

Saving for retirement sounds simple, but for some, it can be difficult to know where to begin. At Carthage Savings & Loan, we have a number of financial resources to help you plan for personal savings and achieve your goals for retirement. To learn more, give us a call today at 800-232-0450 to speak with a representative.

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