Many Americans struggle to save adequately for retirement, and this can lead to financial stress and even a scarcity mindset. With the increasing life expectancy rates, many retirees are faced with being short on their savings. However, various inventive strategies can help boost your retirement fund.
Even if retirement seems distant, it’s crucial to secure your financial future by regularly contributing to your retirement fund and incrementally increasing it each year. Balancing everyday expenses such as housing and food or dealing with debt payments can be a challenge. Nonetheless, it is possible to effortlessly and unconsciously grow your retirement savings. I personally find it more efficient to automatically save for retirement while letting my account amass in the background. Here are some of the simplest and most inventive methods to enhance your retirement savings over time without overdoing it or obsessing over it.
ONE WAY IS BY INCREMENTALLY UPSIZING YOUR 401(K) CONTRIBUTIONS WITH YOUR ANNUAL RAISE
Making contributions to your 401(k) provided by your employer can be a beneficial method to boost your retirement savings. Since these contributions are deducted pre-tax automatically, you’d hardly notice the funds being taken out. Additionally, some employers may even match your contributions, which can be incredibly beneficial.
If you begin by contributing a small fraction of your income to your 401(k), try upscaling it every year in alignment with your raise. Budget in a way that lets you live comfortably on your current salary. Then, allocate any additional earnings from your raise to upscale your retirement contributions. For instance, if you secure a 5% raise in a year, consider increasing your retirement savings by up to 5% of your paycheck. This way, you’re auto-saving an increased amount without feeling the pinch.
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EVO SHARE CAN HELP YOU EARN CASHBACK ON YOUR EXPENDITURES
EvoShare is an innovative program that lets you earn cashback from the purchases you make at well-known retailers. The money earned can then be auto-added to your retirement account or any other financial goal. On linking your Visa or Mastercard, your purchases can be tracked. EvoShare affiliates with over 10,000 online and local merchants along with 700,000+ hotels worldwide.
When you spend money at a partnering retailer or hotel, the cashback earned goes directly toward your investments. EvoShare can be rolled out through your employer; hence, it’s worth inquiring with them to get them to sign up. Your entire workforce could possibly benefit from this additional avenue of income for retirement investment.
Discover the simplest and most inventive methods of enhancing your retirement savings.
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ACORNS ALLOWS YOU TO INVEST THE SPARE CHANGE
The free application Acorns brings a unique perspective to the saying ‘keep the change’. Rather than discarding the leftover change from your purchases, Acorns invests it on your behalf. Though Acorns works with your debit and credit cards, it does not deal with physical change. Instead, it rounds up your purchase amount to the nearest whole dollar and invests the difference.
For instance, if you spend $4.50 at Starbucks, Acorns will round it off to the nearest dollar, and invest $0.50 on your behalf. You can adjust Acorns to round up your purchases to the nearest $2 or $3 to save more aggressively. You may also choose to make regular contributions.
I’ve been adding an additional $5 per week to my Acorns account, but you can modify that according to your comfort. The key is that you likely won’t even miss these minuscule amounts, yet your balance can really accumulate over time.
SEE ALSO: Acorns Review: Why It’s One of My Preferred Investment Strategies
BOLSTER YOUR RETIREMENT FUND USING REBATES
Rebates are enticing because it’s like getting rewarded for spending money. Typically, it works by earning back a percentage of your purchase amount or a fixed rate. Although rebates are fairly small, especially for regular spending, the trick is to keep accumulating them from different sources.
Rakuten is my go-to site to earn cash back for routine online expenditure. Rakuten occasionally awards up to $14 cash back or a fixed rate for specific purchases. They even provide you with coupon codes for online shopping. As long as your balance is over $5, Rakuten issues a payout every quarter. This is money that can contribute to your retirement fund four times a year.
Another compelling rebate app I recommend is Fetch Rewards, which rewards you for your purchases at local grocery stores, making it super accessible.
ACCRUE PROFITS FROM ONLINE SALES FOR RETIREMENT
Do you have unused stuff at home that you could sell? I frequently sell old items online. Despite regular decluttering, I could probably find items to sell throughout the year if I wish. Alternatively, consider creating and selling crafts on Etsy or digital printables or e-books online.
This could potentially become a passive income source. Additionally, all the profits could go into your retirement savings account. Imagine earning $300/month by selling various items online. This amounts to $3,600 annually that can be directed into retirement in an IRA or another account type.
Do you feel like you’re adequately saving for retirement? What are some of your favorite innovative alternative methods to build your retirement fund?
