- Personal Finance
5 Strategies to Save More Money for Retirement
One of the worst things to happen is to outlive your money. But how do you know if you are saving enough? And how do you balance saving for retirement with paying off debt and living a full and happy life? Here are 5 strategies that will help you save more money for retirement without living like a monk on his last penny.
1) Follow The Richest Man in Babylon Strategy
The Richest Man in Babylon is a book of short stories written to teach healthy financial habits during the Great Depression. The wisdom in the book is still good to live by today. One of the most common strategies throughout the stories for getting rich is to save ten percent of your income for retirement and put twenty percent of it on debt, using the last seventy percent to live off of. When your debt is paid off, you put thirty percent of every paycheck you have towards retirement. This may seem incredibly simplistic, but the advice works. By following this strategy, you will consistently save a good portion of your money for retirement while also allowing yourself to have enough money for other things. For those who live paycheck to paycheck or close to it, the Richest Man in Babylon strategy may seem impossible. To make it work, lifestyle changes or income changes might be needed.
2) Make Healthy Habits
There are many indirect and direct benefits to adopting a healthy lifestyle right now. Staying healthy can save you from trips to the hospital and huge medical bills. You will also have more energy to do the things you want, whether that is spend time with your family or work overtime to raise your income. You can even get money for healthy habits through apps like Achievemint. So by taking the time to eat properly and exercise, you can get more energy, save money on medical bills, and get a little extra money on the side.
3) Start a Side Hustle
Side hustles do not have to be boring, nor do they have to make you feel burnt out. This can be the chance for you to do whatever you wanted to do before. You could learn an instrument and busk on the weekends, or do makeovers at kids' birthday parties. If you like to write and want an excuse to travel more, or you just want to share your favorite local attractions with others, then you could become a travel writer. Not only can having a fun side hustle earn you a little income to save for retirement, but it can also relieve stress and burnout and let you enjoy work.
4) Embrace Free
This strategy is so obvious I almost didn't include it. But doing free activities for your leisure activities is a great way to save money, and can be a lot of fun, too. Instead of renting a movie through Amazon, go to PopcornFlix and watch a movie for free. PopcornFlix, which is available online or through Roku, is a free streaming service for movies and TV shows. By playing commercials, the movies and TV shows are free. You can also see what your community is doing. Maybe you can go see a free play or concert. You could find new books to read at the library. And your family could dust off the old board games taking up space in storage and have some fun that way. Living frugally doesn't have to be boring and tough. It could just mean playing an intense game of Monopoly with your family or watching A Midsummer Night's Dream in the park.
5) Go Green
Reducing your carbon footprint and saving money goes hand in hand. Turning off the lights when you don't need them, taking shorter showers, and unplugging your chargers when you're not using them will reduce your electricity bill. Cut down on food waste and save money on groceries by labeling your food by date bought or made, and ignoring the unreliable expiration dates. You can even get creative by replacing some meat items, like the beef in tacos, with beans and lentils, which are cheaper, taste just as good, and also use less water to grow. By making an effort to reduce your carbon footprint, you help save the world and you also save money for retirement.