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Best Ways to Save Money: Retirement Planning Tips

Posted by: Lisa Nichols | May 12,2008

The best ways to save money and plan for retirement might surprise you. Many people think if they are contributing to a 401(k) retirement savings plan that they are prepared for retirement. But the best ways to save money involve some creativity. Think outside the box when it comes to planning for retirement to get the most out of your savings.

 

Get the Biggest Benefit from 401(k) Retirement Savings Plans

 

Get the biggest benefit from 401(k) plans by planning carefully. Continuing to contribute to a retirement savings plan over time, by adding money each month to an employer-sponsored plan, can result in a significant savings at retirement. But it may not be a good idea to max out 401(k) plan contributions. If your employer matches 6% of contributions to retirement savings plans, then contribute the matching amount to get the most out of your retirement savings. The additional amount that you are allowed to contribute that is not matched by your employer may work harder for you in an independent retirement savings plan, like an IRA.

 

Ideas to Increase Your Retirement Savings

 

One of the best ways to save money and to increase your retirement savings is to simply work longer. We’ve talked about how many Boomers are saying they will take early retirement, leaving the workforce as soon as they become eligible for retirement. Although this definitely has appeal, retirement savings will take a big hit if the influx of money into your accounts slows or stops. Relying on money from a 401(k) plan or an IRA post-retirement can also become precarious when fewer years are worked. Experimenting with a new career, or taking a job that allows you to try out new skills, may pay less but can be one of the best ways to save more money- and the most enjoyable.

 

Best Ways to Save Money: Evaluate Your Credit Cards

 

One of the best ways to save money is to evaluate your credit cards at least every six months. If you’re paying double-digit interest rates on high balances, consider moving your debt to a balance transfer credit card or a low interest credit card to help augment your retirement savings plan. Many cards offer a zero percent interest rate for balance transfers for an introductory period or a low, life of balance interest rate for balances that lasts as long as you have the card.   

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