How to Put More Toward Retirement When You Think You Have No Money

While retirement may be years away for some individuals, it hasn’t stopped them from worrying about their contributions. As more people are living paycheck to paycheck, many are finding they are not able to contribute the maximum to their 401k and other retirement accounts. New research shows that 70% of Americans plan to keep working for as long as they can to boost their retirement savings before actually retiring.

Putting More in the Nest Egg
The key to saving more is starting early but if you are well into your working career and are not confident you have been stashing enough away, there are things you can do to increase your retirement savings even if you think you have no money.

Here are some tips for increasing the amount of cash you are saving for future retirement:

Cut Costs
You can use your budget to find places you can cut back on expenses and put that amount saved into your retirement savings. You may have to sacrifice the expanded cable package you never use or cut back on the amount you spend at the grocery store. Identify the places you spend unnecessarily then take that number and commit to adding the amount to savings each month.

Eliminate Debt
One reason people don’t save enough for later is because they are spending too much now. Regular monthly obligations should be reviewed and a plan should be put into place for paying off expensive debts from credit cards, personal loans, and the like. The more you can eliminate debt, the more cash you can free up for savings. The amount of money you can save on interest can be put to better use in an interest-bearing retirement account.

Analyze Your Portfolio
While you may not have a ton of cash to contribute to your retirement, you need to be sure you are getting the best bang for your buck with the retirement accounts you have. Make sure you have a diversified portfolio that you are staying on top of and check out how much cash you are spending in fees. Set investment goals for yourself and stick with them consistently. You won’t get far if you don’t know where you are going.

Downsizing Your Life
If you are older and no longer have a family in-house to care for, you may want to consider downsizing your life. Evaluate your home and the need for it as the years go by. The costs of upkeep for the home should also be considered. It may be time to downsize to a smaller, more manageable place for your golden years and put the cash you saved into your retirement accounts. If you are not interested in moving just yet, consider other areas of your life where you can downsize like your vehicles and other things you no longer use or need.