If you’re reading this, it likely means you’re getting close to retirement age or, at the very least, thinking long and hard about how you will make ends meet once you stop receiving a weekly or biweekly paycheck from work. And let’s face it, with the economy severely lacking and inflation through the roof, even making ends meet now is a bit difficult.
Luckily for you, there are quite a few ways to build your wealth, even if you haven’t been regularly contributing to a retirement savings account.
- Contribute to Retirement Accounts
The first thing anyone is going to tell you is to take advantage of employer 401(K) or IRA accounts, especially if your employer matches what you put in. This is basically free money for you, so make sure to at least contribute the minimum they will match. You can also set this up so it comes out automatically, so you won’t even have to worry about it.
- Take Advantage of Catch-up Contributions
On that note, if you are above age 50 and feel like you haven’t saved enough, make catch-up contributions. While impossible to do in your younger years, after 50, most IRAs and 401(K)s allow you to contribute far beyond the normal limits. So, take advantage of that.
- Budget and Live Below Your Means
Another good idea, and one that is a must for nearly any age and lifestyle, is to have a budget and make sure you are consistently spending less than you earn. Know your limits – what comes in, what goes out, etc.
- Downsize
If you’re an empty nester or about to, consider downsizing. If it’s just you and your spouse in the home, maybe you don’t need four bedrooms and a massive yard. Also, look for other areas you can cut spending that may no longer be required.
- Delay Social Security as Long as Possible
You likely know that you can begin drawing social security benefits at age 62. But if you can wait even one full year, your monthly benefit will increase. Basically, the closer to 70 you get without retiring, the more you’ll receive monthly after retirement. So wait, if you can.
Just don’t wait to start saving. You don’t want to be left with nothing for your future.
