If you’re hoping to one day retire in Minnesota, don’t be overwhelmed with the prospect of saving
enough money. Putting money away for retirement doesn’t have to be done in large sums all at
once. In fact, people who add a little here and a little there using the tried-and-true techniques
described below are often the ones that accumulate the largest nest eggs when it’s finally time to
retire. Most of these tips don’t require any significant life change at all. To help you comfortably
retire in Minnesota, here are some easy ways to save more money towards that goal.
Simply Add 1%
When it comes to saving money, no matter what the reason or circumstance, a little goes a long
way. One way to retire in Minnesota with more money is by simply adding 1% to what you’re
already saving. It’s likely that you will barely notice the change in your personal month-to-month
finances and that 1% is likely to yield a near 6% annual return. That’s a huge difference.
Don’t Pocket Your Raise
We all love raises because, to most people, that means they have more money to spend. But that’s
not how you’re going to treat them! Treat raises as money that goes directly into the account helping
you to retire in Minnesota – no questions asked.
Don’t Blow Your Tax Refund
View your tax refund the same way as raises described above. Simply redirect every penny of your
tax refund to your retirement account. This is easier said than done, particularly for those living
paycheck to paycheck, for example. But you will be patting yourself on the back years into the
future for making this wise decision.
Any Bonus You Receive Goes “You Know Where”
Seeing a trend here? One of the simplest ways to save more money toward a goal to retire in
Minnesota is by redirecting extra funds received outside your regular income to your retirement
savings – prize money, Christmas bonuses, inheritance money. If you can get into the habit of doing
this, you won’t even miss the money because it never entered your personal checking account in
the first place.
Matching a 401k
When you find yourself changing jobs, don’t forget to consider potential 401k contributions that the new employer may offer. Also, be sure that you confirm your existing 401k plan with your soon-to-be ex-employer so that those contributions follow you.
There are ways to delay paying income tax as it pertains to money saved to retire in Minnesota. For
example, you can prepay your taxes using a Roth IRA or Roth 401k or you can delay paying them
by using a traditional IRA or 401k. In addition to these practices, consider the fact that if you fall into
a moderate or low income bracket, there may be even more savings available to you such as
qualifying for a saver’s credit.
Eliminate Unused or Barely Used Expenses
How much are you paying for your Direct TV, the membership to your local gym, etc? Cancel and
eliminate these expenses from your monthly bill ledger and put the money you were spending on
them towards your goal to retire in Minnesota.
If you have questions, or maybe need a little assistance with saving for your upcoming retirement, give me a call, or send me an email!
To schedule a call with me Click HERE.
To get a free Retirement guide, visit us HERE.
Check out our workshop times or sign up for a webinar while you’re here!
See you soon.