Saturday, April 11, 2015

Somehow, as we pursue the daily grind, retirement seems very far away—and the notion of retiring early may seem like nothing but a dream. But finding ways to sock away a little more money can make that dream a reality.

Consumer finance blogger A.J. Smith offers five tips for cutting costs now so you can worry less a little later:
 

• Refinance major purchases – If you can afford to make higher payments on your home mortgage or car, check into refinancing as a way to get a lower rate and shorten the term of the loan. You can then redirect the funds you were paying on that loan to fatten your retirement account.
• Trim excess costs – Take a hard look at your spending habits and cut out the splurges or the little extras you know you can do without. Just dining out a few times less often each month will yield a few extra dollars you can toss into retirement savings.
• Contribute more toward your (401k) – If you have this option available, contribute as much as you can afford. If your employer offers a matching option, this is free money that will help your retirement account grow.
• Re-evaluate your insurance – While insurance is important security to have, you should pay only for the coverage you need. Review your existing plans now and then to reconsider your coverage amounts, premiums, and deductibles for health, car, and life insurance – and trim or readjust them as necessary.
• Get a side job – Consider ways to earn a little extra money that you can put aside directly for retirement. Perhaps you can get a part-time job, or turn your hobby or skills into a money-making business you can handle while you are still employed. Bonus: your side-business may become an enjoyable source of extra income even after retirement.

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