Tips for saving money before you retire

How good are you at saving money? If you’ve planned ahead and have been smart with your investments and retirement planning, you will probably live a happy life after retirement. But if you’re still working and try to save a little more, here are a few tips.

The only way you’ll be able to save money is by making more money, spending less than you make–or a combination of both. If you’re used to living within a budget and know that when that money is gone, it’s gone, it eventually gets easier. But when extra money is in our account, that can be seen as fun money. Instead of blowing it, set up an automatic transfer to an investment account.

In order to save when you’re making more money, you can’t  spend it. If you start to receive more money each month due to a raise, for example, use some of the money and put the rest away. You worked hard and you should be able to have some fun. Just make sure you’re putting the bulk of it away.

One easy way to blow through your savings account is by making big, impulsive purchases. Do you really need a fancy new car? Or maybe it’s a big splashy boat you just had to have. Every penny you spend instead of saving takes you further from retirement. Be smart and think about big purchases very carefully.

If saving isn’t your thing, using cash instead of cards and telling people about your savings goals can help you be more accountable. When you use a cash system, you can’t over spend. When the cash is gone, it’s gone. For people with impulse control, this is a great way to stay ahead. Another good idea is to tell people about your savings plans. Maybe it’s one of your children or a close friend. Tell them your goal, so they can check in with you to see how you’re doing.

Being able to retire with enough savings to make you comfortable is a great feeling. Even if finances aren’t your strong suit, you can look like a pro if you adopt these basic principles.