How To Build Up Your Retirement Accounts Quickly

Are you worried about not having enough money for retirement? If so, then you can rest assured that you are not alone. The good news is that there are several things that you can do in order to save money for retirement. Saving more money will allow you to get more out of retirement.

Save up More Aggressively

The best thing that you can do in order to make sure you have enough money for retirement is to start saving up money more aggressively. You will need to begin with the retirement account that your employer sponsored. The maximum amount that a person could contribute to their 401K in 2017 was $18,000. In 2018, that number has increased to $18,500.

If you are over the age of 50, then you can add an additional $6,000 to your retirement account per year. That is why older workers can contribute a total of $24,500 to their retirement account. You will be able to play catch up if you were not saving up money for retirement earlier in your life.

One of the perks of contributing to your retirement account is that your employer will give out matching gifts. This will give you a chance to build up your retirement account.

Downsize Your Housing

A report by the Harvard Joint Center stated that 39 million people in America cannot afford the house that they live in. This is nearly 30 percent of people in America. Nineteen million people spend more than half of their income on their housing. Financial experts recommend that people do not spend more than one-third of their income on housing.

One way that you can save up for housing is to reduce the amount of money that you spend on your housing. There are even more benefits that you can reap by downsizing if you live in a house. Not only will you be able to lower your monthly mortgage, but you will also be able to cut your utility costs. It typically costs more money to cool and heat your home if you live in a bigger house. You can also lower your property taxes.

Relocate to a More Inexpensive Place

The place that you live will determine how much money you will be spending on your monthly bills. For example, if you live in a major United States city, then you will spend more than you would spend if you were living in the country. It is typically cheaper to live on the east coast or west coast than it is time to live in the Midwest or South. That is why you may want to consider relocating.

Work Longer

There are two major benefits that you can reap for working for a longer period of time. You will be able to make more money, which you can put towards your retirement. You will also be able to increase your Social Security benefits.

You can start receiving your Social Security benefits after the age of 62. However, you will be able to increase your benefits drastically if you do not draw Social Security until the age of 70. Benefits increase by 8 percent every year from 62 to 70. That is why working longer is one of the best things that you can do to increase your retirement benefits.

Even if you re an older person, it is still possible for you to find work. There are many great jobs for people who are over the age of 50.

Say No More Frequently

If you have not been able to save money for retirement because you have always been giving out money to other people, then it is time for you to stop that. Many people tend to take care of themselves last because they feel compelled to take care of everyone else. Some parents will save up for their child's college education before they save up for their own retirement.

You may have to change your mind in order to change your habits. However, if you are trying to save up for retirement, then you will have to get into the habit of putting yourself first. You will have a much easier time saving up for retirement.

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