Most Canadians do not have enough money saved to retire. And with the ever-changing work environment, most people do not have an adequate pension to support them when they reach their golden age. Without a sound plan or pension, most retirees end up living in a low income bracket, or are forced to remain in the workplace much longer than they want to support their financial needs.
While many younger adults do not think of retirement when they are first starting their careers, the reality is, the sooner you start putting money away, the better your future will be. There are many ways to save money for the future, no matter how much or little you make.
1. Start Early
While it is hard to think about retirement when you are just starting out in the workforce, the truth is, the sooner you begin to put money aside, the more you will have when you get older. While younger generations do not like to think about it, the decades fly by faster than people realize, and retirement is not as far a way as many people think.
2. Pay Yourself First
To help save for the future, pay yourself first. Meet with your financial advisor to arrange for automatic deposits into a monthly retirement savings plan. When the funds are taken out each month through direct withdraws, it will become part of your budget and you won’t have to worry about making the payment yourself each month.
3. Live Within Your Means
Many people spend more money than what they can afford and find themselves in significant debt. If you want to have money, rather than continually trying to keep up with the Joneses, it is important to live within your financial means. Set a realistic budget, cut expenses, avoid impulse spending, and as much as possible, use cash when making purchases.
4. Cut Out Expenses
People often spend a lot of money on stuff they don’t need without realizing just how much their frivolous spending takes away from their savings. By cutting out unnecessary spending, you will be surprised by how much extra cash you must put away for that rainy day. Having only one credit card with a minimal limit will also help keep the frivolous spending down.
5. Pay Off Debt
Debt, and the interest rates that often go with it, rob you of your hard-earned cash. The less debt you have, the more of your money you can keep for yourself. If you cannot pay cash for something, pay it off the loan as quickly as possible so you are not throwing your money away on high interest fees.
6. Increase Your Income
There is an old saying that “you can never have too much money”. The more money you can bring into your home, the better. Paycheques might limit the amount of money you earn, but there are many ways to increase your cash intake through side jobs and work from home ventures. Some people also make money through wisely allocating their money in a guaranteed investment certificate. Finding something that works for you will increase your household income for a better today and tomorrow.
No matter how young or old you are, retirement is part of life that you need to think about now. Strong money management and retirement savings plans will ensure that you have a comfortable future. By saving for your future early, you will enjoy the golden stage of your life comfortably. There are many easy steps that you can take to help make saving money an effortless and painless experience.