Late Start to Retirement? 12 Strategies to Save

Are you over 55 and have little saved for retirement? Please don't despair, and it's never too late to start saving.

It can be daunting to find yourself approaching retirement age with little to nothing saved. However, it’s important to remember that you’re not alone, and there is always time to start planning for your financial future. This article will discuss some specific things you can do to make up for lost ground and secure a comfortable retirement.

First, assess your current situation and explore all available options. For instance, if you are 55 years old and in good health, you have a decade before reaching 65 and a decade and a half before going 70. While starting your savings plan earlier is ideal, it is still possible to make significant progress within a 15-year or even 5-year time frame with a well-defined action plan.

Another critical step is to know your numbers. This means understanding where your money is going by creating a budget. A budget is not a restriction but a tool that sets you free by giving you control over your finances. To better understand your spending habits, try completing a 30-day spending audit. This means tracking every penny you spend for a month. Track all your spending for 30 days with a simple piece of paper or spreadsheet.

Once you have a clear understanding of your finances, keeping more of your own money is essential. You will be empowered to make changes when you know how much income is coming in and where it’s going every month. Imagine what it would be like if you could keep all of your payments with no expenses. This is the ultimate goal, and while eliminating all costs may not be possible, you can certainly reduce them.

Another tip is to get out of debt as soon as possible. Debt can be a significant obstacle to saving for retirement, so it’s essential to pay it off as quickly as possible. This may mean sacrificing, such as cutting back on discretionary spending, but the result will be worth it.

Another strategy to consider is to increase your income. For example, consider taking on a part-time job or starting a side hustle to increase your revenue. Additionally, set a clear and specific savings goal, such as saving $10,000 in 2023, to stay motivated and on track.