5 Easy Tips for Bulking Up Your Retirement Savings
It can be hard to put money toward your retirement each month. A lot of what you make goes toward your expenses, placing your retirement account on the bottom of your priority list. Fortunately, there are easy ways for you to reduce your spending. The trick is to take the money you’ve saved and place it directly into your retirement account before you can spend it on anything else. By finding a few unexpected places to cut back, you’ll be surprised at how much you can actually put away. Ready to amp up your retirement savings? Try these five surprisingly easy tips.
1. Keep a car for a minimum of 10 years
Not what you thought the first tip was going to be, right? But it’s a good one to follow. If you need to have a car, plan on driving it for at least 10 years, according to U.S. News & World Report. Over your lifetime, that will equate to purchasing half as many cars as someone who purchases a new car every five years. It equates to a lot of savings that can be put toward your retirement. How much, exactly?
U.S. News & World Report says that in the book Deal With Your Debt, author Liz Weston discovered that by driving a car five years longer than a typical car loan, you could save $250,000 over a lifetime. If you take that a step further and invest the savings with an 8 percent return rate, you could easily find yourself with a savings of around $2.5 million. Bet your old car isn’t sounding nearly as bad as it was before.