The Frugal Free Gal

Are you thinking about saving for retirement? Read these essential tips for retirement saving.

This topic is a sensitive one for so many families living paycheck to paycheck. It may not seem possible that you can save any money, nevermind save money for retirement.

I’m here to tell you some exciting news, you can save for retirement!

I’m going to share some tips that will help you plan this tedious necessity without stressing or neglecting your current financial responsibilities.

Essential Tips for Retirement Saving

Grab the Company Match

If you’re employed and your company offers a 401(k) or 403(b) try to take advantage of the company match. Many employers will match their employee’s contribution up to a specific monetary amount.

This is an easy way to start boosting the retirement savings without adding more of your own funds into the pot.

Automate Your Savings

Some bank accounts will allow you to automatically transfer a specific dollar amount from one account into another.

Try to set yourself up with retirement savings by setting your checking account to automatically transfer a set dollar amount every week into your savings account.

This savings account must be one that you’re designating for retirement savings so that you never dip into it.

Know Your Retirement Needs

Take your time figuring out how much money you want to have by the time you retire. You may have special circumstances that require you save more than the recommended amount.

Take into consideration everything that you’ll need to deal with financially during retirement and set yourself up with a minimum contribution set aside into your retirement plan every week or month to meet this need.

Slow Down Spending

Many families are spending more money than they truly need to. Sit down and create a budget to help slow down your spending habits.

When you stop buying that extra coffee at the coffee shop, put the money into your retirement savings account.

Getting a handle on your current finances and spending habits now will help you better save towards your future without stress.

Stash Extra Funds

Do you get a bonus check at work? Perhaps you’re a freelancer and have this new client who spent a little extra on your services.

Take those extra funds and put them aside. While it’s tempting to spend that extra bonus or monetary compensation, you’ll thank yourself later if you start to apply those extra funds towards your retirement savings.

7 Ways to Build An Emergency Fund – How to Save for a Rainy Day

Invest your Money

Speak with a financial advisor who can help you determine the best way to invest your money. This could be investing in stocks or putting a specific amount of funds into a high interest yielding savings account.

These are great options to get your money invested into something that can pay you back more later on in life. Most high interest yielding savings accounts or CD’s have a term limit for keeping the funds in exchange for earning a higher interest level.

These are both great options to seek when you’re trying to plan for retirement.

These are just some of the essential tips for retirement savings. If you want to retire comfortably, it’s important that you start thinking about this topic sooner rather than later.

There’s no time like now to start investing in your future comfort during retirement.

Pop quiz: How much money did the average family spent on Christmas gifts last year?

1. $455
2. $646
3. $815
4. $1,090
5. $425,000

If you guessed B — $646 – you’re right. If you also think that number seems a little low, you’re not alone. If you think it seems a little high, you’re a savvy shopper who’s figured out how to save a few bucks during one of the biggest spending sprees of the year. Maybe we can grab coffee sometime and share our secrets! Oh, and if you don’t mind, I’d like to share a few of those secrets with the following list:

1. MAKE YOUR OWN GIFTS – Homemade gifts not only cost less than most other gifts, but they mean that much more because they’re, well, homemade! The only cost associated with these gifts are the supplies which, if you buy wisely, should cost somewhere between $10 and $20. Need some ideas? Try a personalized book of coupons, a fabric-covered notebook, or an assortment of cookie cutter soaps. Need 97 more ideas? Check out this website!

2. BAKE YOUR OWN GIFTS – If you’re good in the kitchen (specifically with the oven), you should definitely consider baking your own gifts. A dozen cookies in a nice tin are an ideal present for just about anyone, including friends, family, neighbors or co-workers.

3. TRY A GIFT EXCHANGE – Got a big family, a large pool of friends, or a few dozen close co-workers? Instead of buying a gift for each person in the group, suggest a gift exchange. You’ll only have to buy one gift – and, yes, you’ll only get one gift – but you’ll save plenty of money. Perhaps you’ll save enough to buy a few “just because” gifts throughout the year!

4. MAKE A LIST AND CHECK IT TWICE – It works for Santa, and he should know a thing or two about making the most out of a limited budget (I assume he has a budget, those elves don’t work for free!). Start your list by writing your total Christmas spending limit at the top. Then write everyone you’d like to shop for and how much you’d like to spend on each person. And then – here’s the hard part – do whatever you have to do to stick to that budget.