A retirement fund is essential to have. When you reach the age of retirement, you want to ensure that you have enough money to live comfortably without having to work much. You should be able to save enough money during your working years to do this, but it’s never too late to start. If you own a home in Raleigh, here are some quick ways to boost your retirement fund.
401k and Roth IRA
You may already have a 401(k) plan with your employer, but are you taking advantage of the employer match program, if one exists? To take advantage of the full benefit of free money, you should contribute as much as possible to your 401k. Some employers will match up to 50% of your contributions up to a certain amount, and others will match 100% or make deposits even if you don’t! Because the 401k funds are deducted from your paycheck before taxes, you will save money on additional taxes.
You can have a Roth IRA account in addition to your 401k. Your money will be taxed now, but not when it matters most in retirement. To take advantage of this saving opportunity, make sure to contribute the maximum amount to your Roth IRA. Contributing the maximum amount allowed will significantly increase your retirement fund. Over the age of 50, you are permitted to make additional contributions to your accounts, referred to as “catch up” savings.
Pay Off Debt
Paying off debt is an excellent way to increase your retirement savings. Make sure you’re not only paying the bare minimum on your accounts. Interest and fees will eat up a large portion of this, which will be applied to your principal balances over time. Making large lump-sum payments to reduce your overall debt will save you thousands in the long run and allow you to put more money into your retirement fund. Once you’ve paid off your debts, make a commitment to paying off the entire balance every month. This will not only save you money, but it will also boost your credit score!
Take on a Second Job
Taking on a second job is another way to quickly boost your retirement fund. Your second job income can go straight to your retirement fund because your current job covers all of your needs. You may lose some of your free time, but consider how much time you’ll have when you retire! When you’re older, you’ll have plenty of money and free time to take those vacations and travel. You might even be able to retire early if you save enough money!
Sell Your House
If you are a homeowner in Raleigh, the easiest and quickest way to boost your retirement fund with a big chunk of money is to sell your house! You might even be able to get the buyer to cover the majority of the fees so you can save more money. Consider downsizing now to save money for the future. When looking for a loan for your new home, you can also take advantage of the low-interest rates. You can put thousands of dollars into a savings account to begin earning interest right away, find a new home to live in, and save even more money thanks to the lower interest rates. You’ll save money in unexpected places, such as your electric and water bills, as well as the time it takes to clean your house. You might be able to find a smaller, more energy-efficient home closer to your place of employment, saving you time and money on a daily basis!