Regardless of your age, preparing for retirement can feel overwhelming, but the earlier you start, the better. Then, you can take easy steps to set yourself up for success later in life.
It’s easy to push it off and procrastinate planning because retirement can feel far off. Perhaps you’re not ready to think that far into the future, or you think it’s too soon to begin preparing. However, as Geoffrey Chaucer told us, “time waits for no man,” so it’s never too soon to start laying the foundation for the life you want to lead in the future.
Here are 13 actionable steps you can take today to start preparing for retirement at any stage of your life.
1. Set Goals
The first step of goal setting is brainstorming about your retirement dreams and asking yourself important questions. For example, when would you like to retire? Would you like to retire at the normal retirement age, or did you have a different age in mind?
Ask questions about the type of retirement lifestyle you’d like to lead in your golden years.
Would you want to maintain your current standard of living? Would you have enough money to do so?
How many sources of income would you like to have?
Do you see yourself working a part-time job after you retire? Or would you prefer volunteer work?
What do you hope to do with your free time?
Ask yourself questions to determine where you want to live.
Do you see yourself living in a different city? Maybe another part of the world?
Would you like to travel often?
Would you like to downsize, so you require less money to live?
It’s important to paint as clear of a picture as possible so you can dial in a detailed plan for your retirement. Of course, your plan can change over time; however, getting as specific as possible will help you be more thorough in your planning.
Load Error
Once you’ve determined your retirement income needs, jump online and enter your information into a retirement calculator. This tool will give you a good idea of how much money you should be saving to reach your goals.
It’s challenging to know if you’re on track to reach your financial goals when you’re not paying attention to your money and don’t understand your numbers. Learning how to live on a budget will allow you to make intentional choices with your spending and saving. In addition, building a solid budgeting habit will help you transition more quickly to your new retirement budget when the time comes.
3. Start Immediately
If you’re later in life and you’ve yet to begin saving for retirement, let go of any guilt or shame you may feel. Unfortunately, it’s impossible to go back in time and start preparing at an earlier date. It is, however, possible to start right now, today.
Don’t overthink it, don’t avoid it; take action.
Grab your phone, pull up your bank account, and transfer some money to savings. Any amount is sufficient. The intent isn’t to fund your entire retirement but rather to take the first step toward your retirement goals.
Taking this first step will solidify your new commitment to your financial future – you can iron out the details as you go.
4. Explore Your Options
One of the best things you can do for yourself when preparing for retirement is to do your research. Do you have a good understanding of your options when deciding how you will save for retirement? Are you well-versed in different investment vehicles, such as stocks and index funds, and which may better fit you? Does your employer offer a 401k or a 403 b? Do you understand how your pension plan works if you’re a public service employee?
Are you clear on the difference between a Roth IRA and a Traditional IRA? Do you understand the difference between saving money in a traditional savings account versus an individual retirement account (IRA?) Are you aware of the income and annual contribution limits?
Even if you elect to work with a retirement professional, it’s still a good idea to educate yourself on the different retirement investments available to you. The number of options can be overwhelming, and each carries its own set of rules and regulations. Not to mention, it’s rarely a good idea to put your nest egg in jeopardy by investing in products you don’t fully understand.
Commit to this vital step of researching whether your retirement strategy includes real estate, crypto, or mutual funds because the more you know, the better off you’ll be.
5. Create a Plan
The next step is creating your plan for retirement, which isn’t as complicated as it sounds. It’s just a matter of taking your current numbers and the numbers you got from the retirement calculator and determining the amount and frequency you want to save for retirement.
Remember that your financial situation will ebb and flow throughout your life. You can expect periods of abundance and possible bouts of financial trouble. Therefore, it’s essential to review and revise your plan accordingly over the years to ensure you are staying on track to reach your goal.
Important things to consider when creating your retirement plan:
Where will you save the money?
How often will you contribute?
How much will you contribute?
What will your income sources be?
What will your health care costs be?
What will your financial needs look be?
What financial obligations will you have?
How much risk are you willing to take?
6. Pay Off Debt
Suppose you have debt other than your primary mortgage. In that case, this is an excellent time to create a plan to get out of debt while concurrently saving for retirement. Paying off your debt will free up more of your income each month and allow you to commit more of your money toward retirement.
How To Make Money In One Hour – 14 Easy Ideas
Earn in Your Spare Time
Our suggestions aren’t a get-rich-quick scheme, so don’t get too excited. However, you can do these small side hustles in an hour, in your spare time, or on weekends. Moreover, you’re only a few minutes away from learning some of the most straightforward ideas to make money in one hour.
How To Make Money in One Hour
Ready to earn more income? Keep your options open – here’s 14 legitimate ideas to try.
Sell Your Things
Clearing clutter is good, but throwing out your items may waste money. Someone may find your pre-loved items valuable, so try to make money from them! You may be surprised at how easy it is to sell almost anything you own.
Sell or Pawn Your Gold
Let us start with the highest-value items. Do you have gold jewelry you don’t wear? You may have other items made of gold, like coins or bars. With the price of gold touching multi-year highs, you can likely sell your items for a handsome profit.
How To Sell Gold
You can sell your gold and other precious metals online as well. The process is easy, but it will take longer to get paid.
Resell Pre-Loved or Unused Items
Make money by selling your pre-loved items. For example, you can sell new books, games, clothes, shoes, accessories, or furniture, to name a few.
How To Sell Your Stuff
You can hold a garage sale or market your items on online marketplaces like eBay, Etsy, Decluttr, or Facebook Marketplace. First, look at other listings to find out what others sell items of similar brand, quality, and condition. Then, price your items just below market price to make money faster.
Sell, Trade-In or Recycle Old Gadgets
Sell your old phones, fitness trackers, smartwatches, tablets, laptops, and other electronic devices for fast cash. Your old gadgets may fetch a great price if you’ve cared for them. However, make sure to delete personal details and files before selling them.
The easiest way to sell electronics is through sites like Facebook Marketplace, GreenBuyback, Craigslist, or BuyBackWorld. In addition, you can ask for instant payment on delivery via cash, Venmo, or PayPal.
You can also profit by trading in old devices at repair stores or retailers for a discount on a new one. Then, once you have the new device, sell that for a higher price than you paid.
Recycle Your Electronics
Recycling is another option for getting rid of old or broken electronics. Use ecoATM to earn cash from your devices. They have over 4,000 kiosks in the U.S. that you can find at grocery stores, malls, and other establishments.
Once they’ve assessed your phone, they will offer you a fair price, and you can instantly get paid.
Sell Your Hair
Do you have long locks that you want to cut off? Or do you always get compliments on your silky hair? Then consider selling your hair to generate income.
Healthy, untreated hair around 10 inches long is in high demand to create wigs and extensions.
How To Sell Hair
Your hair should not be bleached, dyed, permed, curled, or straightened.
It’s also vital that your hair is not damaged due to the excessive use of hair dryers, hot irons, or any other heated tools for your hair.
To get paid quickly, visit your local wig shops or hair stylists and ask if they purchase hair. You can also sell your hair on beauty websites like HairSellon and OnlineHairAffair.
Sell Your Gift Cards
Face it; you will never use that wine basket gift card your aunt got you. You don’t even drink wine! Similarly, most of us have unwanted or unused gift cards cluttering drawers and wallets. So resell them online to get some value back.
How to Sell Your Gift Cards
Visit a site like CardCash or GiftCash.
Enter your card’s details to create your listing. You can also trade your gift card for another shop card you like instead of selling it.
Card cash will pay you up to 92% of a card’s value. You can transfer the card’s value online, resulting in fast payouts.
Provide a Service
Do you like helping others while earning money? Then, try these side jobs to make money in one hour.
Pet Sitting
Turn your love of animals into a profitable side hustle. Start earning while walking or taking care of pets for busy owners.
To find paid pet-sitting opportunities, ask your friends, neighbors, or relatives if they need help pet-sitting or walking their pets. You can also register on websites like Rover and Wag to connect with more pet owners around your area.
As a pet sitter, your duties may include the following:
Babysitting
Help provide peace of mind to busy parents and get paid for caring for children. It is not for everyone, though. Babysitters are usually in their early to mid-teens and are not paid much more than minimum wage.
You must be responsible, skilled in handling children, and patient if you want to try this work.
A good character reference may help you land a job as a babysitter. Start by taking care of the kids of people you know. Then, you can use them as references if you want to continue this gig.
Become a Rideshare Driver
Ridesharing apps like Uber and Lyft are consistently in need of drivers. Car owners with free time can do this to earn extra cash.
According to Salary.com, an Uber driver in the U.S. can make up to $18 per hour. The average driver makes around $15 per hour. You can make more money if you live around major cities like New York or LA.
Try Mystery Shopping
Shopping is usually associated with spending money, but you can sign up as a mystery shopper to earn money. Apps like Field Agent and Gig Walk will pay you to become a mystery shopper in your local area.
Mystery Shopping Duties
As a mystery shopper, you will pose as an ordinary customer and visit retail stores to:
Do Yard Work
Do you have the skills to whip someone’s lawn into shape? Grab your lawn mower or rake and ask if you can clean your neighbors’ yards for hourly pay. Tasks may include lawn mowing, trimming hedges, or preparing flower beds.
Yard labor can be physically demanding. Therefore, be prepared before applying for this position.
Shop for Groceries
Grocery shopping is another job you can do to earn extra money in an hour.
Instacart is a grocery delivery platform that lets you shop for other people’s groceries.
To become a grocery shopper, you must have good eyes for spotting fresh produce and good products. Take note that you must be at least 18 years old and have access to a vehicle to be recruited for this position.
Start a Delivery Service
Deliver meals, groceries, prescription medications, dry cleaning, and other supplies. DoorDash says their ‘dashers’ make around $25 per hour, including tips. Additional delivery services you can try are UberEats, GoPuff and Postmates.
You can cash out daily with both UberEats and DoorDash. You can also keep 100% of the tips, which can add up quickly.
Become a Handyman
If you are good with tools and like to do repairs around the house, turn that talent into a money-making venture. You can find jobs near you on Craigslist, TaskRabbit, or HomeStars.
Sign up for anything you are good at, such as:
Try Online Freelancing
Freelance work is an excellent way to make money from home. If you are an expert in writing, graphic design, social media marketing, photography, translating, or any other digital skills, you can make money in your free time.
Become a freelance writer, graphic designer, or social media manager. Use your digital marketing skills to make money in your free time.
How To Find Freelance Gigs
Create an account and look for gigs that match your skills on websites like Upwork and Freelancer. On Fiverr, you can create your gig, set your prices, and let your target audience find you. You can also go to Reddit and browse r/ForHire or r/slavelabour threads for microtasks.
Landing a gig may take some time, but you can complete some jobs quickly and get paid hourly.
You can also ask friends, family, or local business owners who need help with online work or your skills to hire you. Their testimonials about your service can be helpful when you start searching for more clients.
25/25 SLIDES
Focus on paying any credit cards, student loans, medical expenses, tax liens, etc., in full before charging full steam ahead, stockpiling cash for retirement.
Being strategic when paying off your debt can result in getting out of debt more quickly and paying less interest as you’re working to become debt-free. But, more importantly, once you’re debt-free, you’ll have the freedom to save and invest more significant amounts because your money will be your own.
7. Maintain an Emergency Fund
Protecting your budget by saving additional money in an emergency fund will give you financial security. Stashing away 3-6 months of living expenses for a rainy day will keep you from having to use debt – or worse, dip into your retirement – in the case of an emergency.
Ideally, you’ll keep this money separate from your primary finances to avoid accidental spending yet liquid enough that you can access it at any time.
8. Educate Yourself
As you begin preparing for retirement, making smart decisions with your money becomes more crucial. And the best way to make smart decisions is always to be learning.
Consume as much financial information as possible; read books about money, listen to podcasts, and talk to people you know who have been successful with their finances. As you become more educated in money matters, you’ll learn to manage your money more wisely throughout your life.
9. Understand Social Security
Understanding how Social Security works is another crucial part of preparing for retirement. If you’re unfamiliar with benefits or how you can collect payments, contact the Social Security Administration online or visit your local Social Security Office for additional information.
They will provide you with literature or refer you to helpful web pages and social security calculators to help you learn more about Social Security retirement benefits.
10. Protect Yourself and Your Loved Ones
As your net worth grows and you get closer to your retirement years, you’d be wise not to overlook estate planning and insurance. Sure, it may feel a bit morbid and even dull; however, it is a necessary part of preparing for retirement.
Your insurance needs will vary depending on multiple factors, including (but not limited to) your income and financial assets, your living situation, and whether or not you are in good health.
Life insurance, health insurance, and possibly even long-term care insurance are all options worth exploring to protect your financial security.
Estate planning, however, is intended to protect your family members and your assets. Therefore, one of the primary purposes of an estate plan is to reduce the tax burden on your future beneficiaries.
A will, part of an estate plan, outlines how your assets will be managed or divided should you become incompetent or pass on and will also dictate legal guardians if you have minor children.
11. Prioritize
Many people are predisposed to take care of others before themselves. Retirement, however, is one time it becomes crucial to prioritize yourself and your future needs. While it may feel selfish or unnatural to you, understand it is necessary.
Even if you have people in your life who are willing to help you in your retirement, there’s no guarantee they will still be around to make good on their promise once you are retired. However, putting your needs ahead of those around you will afford you a comfortable retirement. At that time, you can take care of others again if you so desire.
12. Seek Help
Should you lack the confidence or interest in preparing for retirement on your own, it’s good to seek help from a professional specializing in retirement planning. A licensed financial planner or financial advisor will help you create an investment strategy, understand tax benefits, and advise you on your distribution options.
Moreover, a trusted financial advisor will be there to guide you through the retirement process and give you peace of mind along the way.
13. Stay the Course
One of the best ways to prepare for retirement is to view retirement as a marathon and not a sprint. When investing your money in the stock market, you will experience many highs and many lows. While it’s easy to get sucked into the news and current events related to the stock market, the best thing you can do is nothing at all.
When the media warns you to pull your money out of the market, focusing on “time in the market” rather than “timing” the market will set you up for success.
Even the most experienced financial advisors cannot predict and successfully time the market; it is a risky move that rarely pays off. However, by investing for retirement with the intention of not touching it before retirement, you’ll avoid harsh penalties and reap the magical benefits of compound interest.
Above all, the most important thing when preparing for retirement is to stay the course. Being consistent, sticking to your plan, and avoiding distractions will virtually guarantee you a comfortable, secure retirement.
This article was produced and syndicated by Cents + Purpose.
More From Cents + Purpose
These 17 Companies Will Give You Free Food Just For Asking
Free is the Best Ingredient
These popular restaurant chains are waiting for you to ask them for free food. Check out these ways to score your favorite grub for free.99.
Starbucks
Join Starbucks Rewards and earn Stars for every purchase you make. Once you accumulate 25 stars, you can redeem them for free food and drinks.
Membership in the Starbucks Rewards program also gives you access to free hot coffee and tea refills. Don’t forget to use the Starbucks app to redeem a free drink or food item on your birthday.
Burger King
Download the BK app or head to their website and get a free Whopper, Croissan’wich, or Original Chicken Sandwich on your first digital order with a minimum purchase of $3.00.
Krispy Kreme
Receive a free doughnut of your choice when you sign up for Krispy Kreme Rewards. If one free doughnut feels like a tease, earn extra rewards points each time you purchase coffee or doughnuts.
More rewards points = more free doughnuts.
Auntie Anne’s
Use Auntie Anne’s Pretzel Perks app to earn special offers, a birthday treat, and ten reward points for each dollar you spend. Two hundred fifty points score you a free pretzel, plus receive a pretzel reward after spending your first dollar as a member.
California Pizza Kitchen
California Pizza Kitchen wants to help you save money by rewarding you for becoming a member of their CPK Rewards program by offering you the following benefits:
Panera Bread
When you join Panera Bread’s free rewards program, you’ll earn rewards based on items you order. You’ll also get a free birthday treat, also personalized based on your order history.
In addition, Panera also reminds its members to keep an eye on their emails inboxes for surprise offers.
Also part of Panera Brands (along with Panera Bread), Einstein Bros Bagels will give you a free bagel and schmear when you join the Schmear Society.
As a member, you’ll also earn 2 points for every dollar you spend. Points can be used toward food and beverage purchases on their mobile app. Plus, you’ll also get a free egg sandwich on your birthday.
Chipotle
Chipotle Mexican Grill touts their Chipotle Rewards Program as “The fastest way to free Chipotle.” Members earn 10 points for each dollar spent and free chips and guac once you sign up and make your first purchase.
Earn extra bonuses and rewards that you can redeem to get free food, drink, donations, and even Chipotle Goods – their line of sustainably-made apparel.
McDonald’s
Join McDonald’s free My Rewards program and download their mobile app to get a free order of large fries.
Earn 100 rewards points for each dollar you spend plus 1,500 bonus points once you make your first purchase. Points can be redeemed for your favorite McItems once you accumulate 1,500 points.
Baskin Robbins
Baskin Robbins rewards ice cream lovers who download their mobile app and sign up for deals with a free regular scoop. The app also helps you save more money by giving you access to additional coupons and deals.
On the Border
Join On The Border’s Border Rewards program and enjoy a free dessert with the purchase of an entree at your next fiesta.
You’ll also earn rewards points on food and catering orders and receive special members-only discounts as a member.
Jimmy John’s
Jimmy John’s swears by its speedy delivery. You can test it out for yourself and snag a free sandwich when you sign up for Jimmy John’s Freaky Fast Rewards program and place your first order. You’ll also earn rewards you can redeem for other free items like sides and drinks.
IHOP
IHOP’s rewards program – International Bank of Pancakes – offers members “returns on their ingestments” in the form of one PanCoin for every $5 spent.
IHOP has deemed their PanCoins as “crypto-pancakes.” Earn three of them and exchange them for a free short stack.
Membership also earns you free pancakes on your birthday, exclusive offers, and the ability to exchange your rewards for other tasty assets in their Stack Market.
Friendly’s
Your sweet tooth will appreciate all of the free sundaes you’ll earn as a member of Friendly’s Sweet Rewards program.
Member benefits include:
Dunkin’
Not to be outdone by its partner, Baskin Robbins, Dunkin’ offers DD Perks members five rewards points for each dollar spent.
Sign up to get a free medium Dunkin’ Refresher and earn additional free drinks with every 200 points.
Chick-fil-A
Chick-fil-A One, Chick-fil-A’s tiered membership program, rewards you with points each time you order.
You’ll also have the option to reach higher membership tiers, unlocking new rewards with each level you achieve. Earn 10 points for each dollar you spend, a free birthday reward, and even surprise bonuses from your local restaurants.
Jersey Mike’s
Last but certainly not least, join Jersey Mike’s My Mike’s email club to earn “Shore Points” on purchases, exclusive offers, and a free sub on your birthday.
How to Choose?
That’s easy, don’t!
Join all the programs. Get all the free food. Your wallet will thank you – your waistline may not.
This article was produced and syndicated by Cents + Purpose.
Kristin Stones
Kristin Stones is the owner of Cents + Purpose, an online community dedicated to sharing practical personal finance content. Her mission is to equip women with the necessary tools and knowledge to take back control of their money and live a more purposeful life. She creates actionable content to help her audience achieve financial wellness using her simple approach to managing money – all learned through her personal experience of paying off almost $55,000 of debt in under two years.
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