Saving for retirement is an important thing to do throughout your career. The more money you’re able to sock away, the more financial security you’ll buy for your future self. An individual retirement account (IRA) is a great place for your retirement savings. If you open a traditional IRA, you’ll receive tax-free gains and you may get a tax break on your contributions. If you open a Roth IRA, you’ll also enjoy tax-free gains on your investments in that account, plus tax-free withdrawals once retirement rolls around.
Finding money to put into a retirement plan can be challenging — especially when your recurring bills seem to monopolize the bulk of your paycheck. If you’ve been having a hard time funding your IRA, here are a few tips to increase your savings.
1. Get a side job to help fund your IRA
If you’re already spending most of your earnings on essential living costs, then it’s easy to see how your IRA might fall by the wayside. If that’s the case, a side hustle could be your ticket to boosting your savings rate.
The great thing about getting a side hustle is your extra earnings won’t be earmarked for existing bills. And if you so choose, you can put those earnings into an IRA.
2. Put the process on autopilot
Many savings accounts come with an automatic transfer feature that allows you to arrange for money to move from your checking account to your savings account. Similarly, many IRAs have an automatic savings option that allows you to put the process on autopilot.
Doing so could make …….