Between struggling to save for a deposit on your first house, working, and enjoying life, it’s easy to see why so many people leave it late to start saving for retirement.
While starting early is a good idea, you don’t need to panic if you’ve left it late, you can still save for retirement, just follow these 5 tips to help you get where you need to be.
1. See A Specialist
You are certainly not the first person to leave retirement saving late in life, and you won’t be the last. But, once you realize you need to start it’s a good idea to seek some advice on retirement planning Melbourne.
Even if you currently have nothing, you’ll be surprised at the suggestions that will be made and how it is possible to put money aside for retirement. You just need to be prepared to listen to the specialist and implement some different tactics in your life.
2. Pay Off Debt
The first step must be to pay off debt. You can’t start saving properly when you still have debt. In fact, you’ll earn less interest on savings than you’ll incur on debt, making it financially better to clear the debt first.
The best way to do this is to create a budget that lists all your incomes and outgoings. Eliminate and reduce as many outgoings as reasonably possible, this will free up the funds you need to clear your debt much faster.
3. Save Anything
Once your debt is cleared you can focus on saving, that means putting any funds you have spare aside, it doesn’t matter how small they are.
This does two things, firstly it builds the funds you have available, even small amounts can grow tremendously over time thanks to the wonders of compound interest.
The second thing it does its starts to create the habit, that will help to ensure you keep sang in good times and bad.
4. Add A Job
An obvious way to increase your income, allowing you to clear debts faster and save more, is to take a second job. Alternatively, you can request more hours or pay where you are or even look for another job that is similar put pays better.
All these things will boost the amount of money you take home. Providing you then stick to your original budget plan, you’ll have extra money that you can save. As mentioned, the more you put aside the faster it will grow!
5. Change Job To Postpone Retirement
Finally, you should think about your retirement age. If you’re in a job that demands early retirement or is physically so demanding you won’t be able to do it past a certain age, then consider changing careers.
It’s not uncommon now for people to have 3, 4, or even more different careers throughout their life. You can learn new skills, potentially increase your earnings, and even postpone your retirement age, allowing you to save for longer.