We have all been told that it is extremely important to have a retirement fund set up. When you are old enough to retire, you want to make sure you have enough money to enjoy your life. Recent reports say that the Average American should have roughly 1.7 million to retire on. That may be even higher for us folks in California. Most people are able to save up enough throughout their working years and other are not able to hit that mark. Here are ways to Increase your retirement fund quickly if you are a homeowner in Little Rock.
401k and Roth IRA
The most common retirement account is the 401(k) but a lot of employers don’t offer a contribution match or employee’s are not taking advantage of it. It is advised to contribute as much as possible to your 401(k) so you are getting your money to work hard for you! Some employers match 50% of contributions up to a certain amount, and some may match 100% or make deposits even if you don’t! The really cool thing about this is that the 401(k) contribution is taken out before taxes so it will save you money on your paycheck!
Along with a 401(k) account, you can personally set up a Roth IRA account. Your money is taxed now but not when you decide to retire which is what makes Roth IRA’s so desirable. There is a max allowable contribution per year of roughly $6,000 – make sure you are maxing it out! Contributing the maximum allowed amount will quickly boost your retirement fund. If you are over 50, you are allowed to contribute a little more into your accounts, also referred to as “catch up” savings.
Pay Off Debt
This may seem obvious but paying off your debt is a great way to to increase your retirement fund quickly. It is not smart to just pay the minimum amount due each month as your debt will snowball from the interest. This may feel uncomfortable, but making larger lump-sum payments to chip away at the total balance will save you a ton of money over time, and leave you more money to contribute to your retirement fund. When you get to the point where you have your debt paid off continue to just pay off the entire balance each month and don’t put large liabilities on your cards that you can’t pay off. This will increase your credit score over time and make you look for reliable in the eyes of lenders.
Take on a Second Job
Another way to increase your retirement fund quickly is to work another job (part-time). Most peoples primary jobs covers their lifestyle and month-to-month expenses. The earnings from your second job can go straight to your retirement account. This does come with a cost however, you will be trading your time now for your freedom in your retirement. You will have to make that choice! If you save enough and work hard, heck, you may even be able to retire early!
Sell Your House
If you are a homeowner in Little Rock, the easiest and quickest way to increase your retirement fund is to sell your house! Selling your home will provide you with a large lump-sum of money! You may even be able to negotiate the buyer paying a majority of the fees to have more money to put aside. Many financial experts encourage folks to consider downsizing to increase their funds for retirement. You can also take advantage of these historically low-interest rates when you are getting financing for your new place. You can put thousands of dollars away to start earning interest now and find a different house to live in, and save extra money with the lower interest rates. Think about this, you will also save MONEY and TIME by cutting down on the water usage and electric usage, as well as saving some time to upkeep a larger home. You could also find a home that is closer to work or family so that you cut down the expenses of time and money on your commute!