How do you save for retirement when you feel like you can’t afford it?
With the cost of living increasing, you may be feeling like you cannot afford to contribute towards your retirement account. Let’s take a closer look at what you should consider.
Review your finances and see how much money you have left over at the end of the month. If you are already making contributions determine if you should adjust that amount based on your current cash flow.
If you are feeling hesitant to commit to a monthly contribution, just start small to ease yourself into it. Once you start making small contributions you may realize that you can afford to contribute more.
If your retirement plan is employer-sponsored, make sure that you sit down with the Human Resources Department to review your options and gain an understanding of what you are committing to. Some questions to consider are, what type of retirement plan are they offering, will your employer be matching your contributions, and if so, is there a maximum that they contribute for the year?
If after you review your finances, you just do not have the cash flow to invest in your retirement right now, consider evaluating your spending habits and see what changes you can make in the future so you can start making contributions towards your retirement. Set a timeframe for when you will execute these changes and start making contributions.
Saving for retirement can be challenging, especially if you are struggling to make ends meet. Consider the big picture of your finances and future goals before you decide not to invest in your retirement.
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