Sexton Advisory Group shares some important tips!
A recent GOBankingRates survey found that 39% of Americans aren’t saving for retirement. While this data isn’t surprising, it validates the very real financial challenges facing Americans today. If you want to get aggressive about saving for retirement, here are some tips to fast-track your savings:
Having a fully funded emergency fund is critical. If you’re constantly playing defense with unexpected costs, which in life are inevitable, you’ll never get to an offensive position when it comes to saving for retirement. This is where your emergency fund comes in clutch – it can soften the blow of an unexpected medical expense, house repairs, job loss, etc. without having to impact your retirement savings. Plan to have at least 3-6 months’ worth of expenses covered in your emergency fund.
Downsize where you can. As mentioned above, smart budgeting habits can only take you so far if you’re living paycheck to paycheck. If you’ve exhausted all your budgeting options and saving for retirement is a priority for you, it may be time to consider downsizing your lifestyle.
Consider switching jobs or taking on additional work. If your salary isn’t keeping up with the pace of inflation, it might be time to consider a new role with higher pay or one that offers retirement incentives, like employer 401(k) matching. Taking on additional part-time work, whether via freelancing or consulting, can also kickstart some funds to contribute to your retirement accounts.
