budgeting

3 Changes You Can Make To Save For Retirement

Retirement is something that a lot of us either don’t want to think about; or really want to think about, but always feel is just out of reach. Quite often, the time to retire hits us far before we imagined it would, with many people finding themselves unprepared for retirement entirely. As busy as you may be with other thoughts, there’s a reason why you need to think about retirement well ahead of time; in fact, there are several reasons.

For one thing, it’s important to think of the cost of living after you retire. You will still consume just as much food and pay the same amount for your mortgage and travel expenses after you retire. In fact, you may very well spend more after you retire because you won’t be using up your time at work. But then again, you won’t be working.

While social security ensures a certain level of income for retirees, it certainly doesn’t cover the entire cost of living for most retirees. In fact, the cost of living can actually rise as you age, due to the issue of long term care expenses. Long term care is something that virtually all senior citizens must consider eventually. Many either make the transition to a long term care facility or retirement community, or they employ an aide at home.

If you do not save up for these expenses, they will most likely fall to your loved ones, for whom it can be quite a significant expense. While you have the ability to save for your own expenses, they will likely be focused on their own. Ideally, you would probably want to be completely independent and not have to worry about long term care expenses at all. However, an estimated 52% of people who are turning 65 will need some sort of long term care service over the course of their lifetimes.

However, it can at times be difficult to save for retirement for two big reasons. These include credit card debt and student loan debt, major inhibitors for the younger generations.

With that being said, people have to get creative when it comes to making money and saving money. You can still save for retirement; you just may have to think outside of the box to a certain degree. Let’s look into some of the unique ways that you can build up your retirement savings.

1. Savvy Thrifting

Chances are that you have a local thrift store that you can visit, and where you can find a number of great items that you would normally spend a lot of money on. While you may not think of thrifting as a way to make money, it actually offers the opportunity for a good deal of profit.

Think about not so much the items you would like to find at a thrift store, but the items you think other people would appreciate. A lot of thrift shops specialize in certain pieces; an antique store may be full of valuable furniture pieces or pieces of jewelry being sold for less than they’re worth. Many thrift stores specialize in vintage clothing as well.

If you can find the right piece for the right price, you may be able to make a lot of money. Think about the fact that, as of August 2017, women’s clothing stood as the number one bestselling item on the internet. If you find a great piece of vintage clothing, a lot of women would spend a good amount of money on it. But there’s so much opportunity for selling on the internet, don’t let clothing be the only type of item you consider.

2. Rent Out Your House

Not everyone is going to be able to rent out their house. Your home’s value as a rental space depends on where it is located, how much room it offers, and really the overall look and amenities of the home. But a lot of people are making an additional income by renting out their homes. This could be done on a very temporary basis, through popular websites like Airbnb.

Or you could rent out your house for the long term. Both of these options are of course easier if this is your second property, but keep in mind that if you spend time away from home it’s still possible to book those dates. This becomes even easier if you have a home, or perhaps a building on your property like a barn, that could be used as a wedding venue. Each weekend, about 44,230 weddings take place; if you have a space that would work as a venue, you should definitely rent it out.

3. Save Your Raises And Bonuses

Find a typical monthly spending plan that works for you, and stick to it. You may get a raise or a bonus, and during these times you might be tempted to spend more. But if you make a big purchase, this extra spending may lead to you accruing more debt.

Another option, rather than spending more, is keeping with your original spending plan and putting your bonuses, and perhaps even the extra income you get through a raise, in a savings account. You could eventually end up with a major amount of money saved.

Of course, it’s impossible to stick with the same spending plan for your entire life. Expense changes over the years and there are always surprise expenses that occur over time. However, you can lean back on the money that you’re saving and rebuild it over time.

You need to take saving for retirement seriously, and there are ways to do so. Spending less is important, as is bringing in an extra income. In this way, you can not only manage your debts but further save money.