In Your 50s? Take These Steps to Boost Retirement Savings
Your 50s are a part of your life that should be considered as somewhat of a final sprint to the finishing line where working is concerned. This means that absolutely any money that can be set aside will give your existing savings the extra boost they need to be able to provide for you financially once you retire.
Here are some ways in which you can help save as much as possible for this time in your life:
Consider Becoming a Landlord
Landlords earn what is referred to as residual income each month, meaning that they receive income without physically having to work for it.
Although this option may not suit everyone, individuals who enjoy doing DIY and home maintenance projects can accumulate a substantial amount of savings while still earning an income once they’ve stopped working. This can be done by renting out your family property and downsizing, or alternatively, by buying an additional property outright.
It’s strongly recommended that you save between 25% and 50% of the rental income you receive each month. This will go a long way in helping to cover property taxes and any maintenance costs that arise – and they will.
Downsize wherever Possible
Now that you’ve reached your 50s, chances are that you’ve become an empty nester – or will become one shortly. This will most likely result in you having a lot of space in the family home that will no longer be needed.
Instead of allowing the vacant rooms to gather dust, consider selling and moving into a smaller home that will now be more suitable for you. Over time, this will not only save a lot of money; additional funds obtained from the sale of your larger home can be placed into your retirement account.
Increase your Savings Rate
Although this might seem obvious, a number of individuals don’t know how to increase the amount of money they’re saving weekly or monthly. However, it can be done by trimming areas of your grocery budget by a few dollars, canceling any unused subscriptions you may have forgotten about or reducing the amount of money you spend on those ‘nice to have’ extras such as fast food.
Additionally, you could shop around for more affordable internet service providers or phone services – a saving of as little as $10 to $20 a month could make a huge difference over time.
Review your Budget Regularly
It’s recommended to check your budget and bank statements each month so you can determine whether you’re still on track for saving enough money. This will also help prevent you from overspending. This is also not the time of your life where you should be making large purchases such as brand new vehicles or other unnecessary items.
Ensuring that you remain on track financially can seem overwhelming at times, especially as you start nearing retirement age. Contact our financial advisors today if you would like to learn more about saving as much as possible for your golden years.