4 Ways to Boost Your Retirement Savings in 2016
If you are looking to retire with enough money to support your desired lifestyle, now is the best time to re-evaluate your retirement savings. Here are some savings strategies than will help you stick to that financial goal this 2016.
Set a Short Savings Goal
With short savings goal, we mean setting a smaller “monthly” target instead of naming a large amount of money that you want to save by the end of the year. In other words, instead of targeting a $4,800 savings by the end of the year, aim for a $400 monthly savings or much better $100 weekly savings. Breaking down a financial goal is easier and more manageable as opposed to aiming for lump sum, which can appear more like an abstract and therefore making you less motivated to work for it.
Make Savings Compulsory
Many of us would only save if there’s an extra money left in our wallet. You won’t go anywhere with that habit.
So, instead of making savings as the least of your priority, make it into a default option. If possible, have some amount withheld from your paycheck and deposited directly into your retirement plan.
Saving by default prevents you from skipping a monthly deposit in your retirement account.
Consolidate All Your Retirement Accounts
If you have multiple IRAs from previous employers, it’s now time to consolidate them into one account. You might be surprised at the total amount you have already saved.
Anyway, doing so will give you a better picture of your overall portfolio as well as gives you more financial flexibility in terms of choosing an investment.
Think About Your Retirement Life
One of the best ways to know if you are saving enough money for the future is to imagine the kind of life you want to have come retirement time. And this may mean taking into consideration the bills to pay, the medications, the vacations, etc. You can use a retirement calculator to see if you are on track for comfortable in your retirement age.