Money and Finance

The 3 Retirement Hacks You Can Do Now

Maximize Your Retirement Contributions

One of the most powerful retirement hacks at your disposal is maximizing your contributions to tax-advantaged retirement accounts. These contributions can provide immediate tax benefits and substantial long-term savings. Here’s how to do it:

To maximize retirement savings, consider contributing to your employer’s 401(k) or 403(b) plan, especially if your employer matches contributions.

If you don’t have access to a workplace retirement plan, consider opening an IRA. The annual contribution limit for both traditional and Roth IRAs is $6,000 for 2023, or $7,000 for those 50 or older.

If you can’t increase contributions immediately, gradually increase them as your salary grows, as even small increases can significantly impact your retirement savings.

Automate your savings

One of the best ways to save for retirement is to automate your savings. This means setting up a recurring transfer from your checking account to your retirement account each month. This way, you’ll be saving money without even having to think about it.

One of the best ways to save for retirement is to live below your means. This means spending less money than you earn. If you can live below your means, you’ll have more money to save for retirement.

Get rid of debt

Debt can be a major obstacle to saving for retirement. If you have debt, make a plan to get rid of it as quickly as possible. Once you’re debt-free, you’ll have more money to save for retirement.