How to save more money for retirement

One of the more unfortunate ways that many of us delude ourselves is in thinking that we are saving enough money for retirement. The reality, though, is that you may not actually be saving the amount of money you should be for retirement.

Run the numbers, and determine whether or not you truly are saving enough money for your retirement. You can use a free retirement calculator to figure out how much you should be set aside. If you discover that you should be setting aside more money for retirement, it’s time for you to reconsider your situation, and look for more money in your budget. Here’s how to save more money for retirement:

Finding more money in your budget

As you look for the funds to save more for retirement, you have two main options:

  1. Cut back on your spending.
  2. Earn more money.

If you really want to supercharge your retirement savings, you can do both things at the same time. But the important thing is that you look for more money in your budget.

Go through your expenses, and figure out where you are spending more than you should. Experts estimate that the average household wastes between 10% and 15% of its income each month. Look at your monthly take-home pay, and then find 10% of that. Chances are, that is the amount of money you are wasting every single month.

Instead of letting that money go to waste, consider using it to save for retirement. Track your spending for a couple of months, and then look for patterns. Identify the items that you are wasting your money on, and then begin cutting them from your budget. Take the money that you save, and put it toward retirement.

Don’t forget that you can always earn more money as well. You can start a side hustle, pick up an extra shift at work, or sell some of your unwanted stuff. Look for creative ways to earn a little more money each month, and put that money toward your retirement.

Step up your efforts

Most of us aren’t going to suddenly be able to put an extra $300 or $400 a month toward our retirement efforts. As a result, it might be necessary to step up your efforts a little bit at a time. Figure out how much extra you can put toward your retirement right now, and start doing that immediately.

As you become comfortable with your new retirement contributions, you can begin to look for ways to step up your investment. Every couple of months, increase you are what you put toward retirement by a little bit more. Over time, you will reach your goal, and do so without overly burdening your monthly budget.

The key, though, is to recognize the reality of your situation, and the reality of what you need to do in order to experience your version of success in retirement. Then, you have to take action to improve your situation so that you can hit your goals.


  1. Derek Kaye

    An excellent post!!

    I agree 100% that most people vastly underestimate the amount of money they are going to need for a comfortable retirement. In my opinion it’s a combination of avoidance (too stressful to look at) and blissful ignorance (I have plenty of time – I’ll start taking retirement seriously in a few years…)

    A short while ago I read a study that showed the average age someone in North America starts to seriously consider retirement and start planning for it is around 50 years old.

    And that’s why we, as financial planners, have to work harder than ever to educate the public!



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