How To Cut Costs And Save For Retirement

Retirement is the time when you would like to kick back and enjoy life and everything you have accomplished. However, it may not be such an easy thing to do if you haven’t saved enough to live comfortably. This is something you need to start thinking of right now, the longer you wait, the less time you have to grow our retirement fund.

Can I Save Enough Money?

But lets start out by stating the fact that no matter how much you cut your costs right now and save for your future, simply saving alone won’t do it. Sure, if you retire at 60 and live to be 65, it may work. But what if you live to be 80 or 92? That means you will need to save enough for 20-30 years! So if you want to keep the same living standards after retiring, you need to put aside half of your salary, which is not really a viable plan.

But don’t discard saving completely, with a few hundred bucks a month saved, it is a few hundred bucks gained in your retirement days. Especially if you know what to do with this money to grow it further.


What’s the alternative to saving then? Or can it go hand in hand with saving? Well, one way would be to invest your money. Keep all that you save in funds that let it grow, but be careful not to take too many risks, you don’t want to be left penniless in your old age. Even if you only manage to grow your investment a few percentages each year, in the long run it will make a huge difference.

Investing comes in many forms, it can be stock, forex or even real estate or gold. But whatever you do, be sure it’s nothing high risk, you don’t want to jeopardize your comfortable retirement because of bad investments.

Still, whether you are just saving or investing the money, you need to cut back on your expenses right now to be able to have more for the future. Here are some simple ideas that save a lot of money over the years:

  • If possible, don’t take out loans or buy anything on credit – the interests alone will make your monthly savings so much smaller.

  • Buy stuff in bulk – go grocery shopping once a week and stock up on household items once a month. The less you visit the supermarket the less you buy on impulse and spend on gasoline. Besides, prices are lower for bulk purchases.

  • Always pay your bills – if you are on time with your payments you will avoid fees and charges later on. Never buy luxury items or anything else you don’t need before you have paid your monthly bills!

  • Cook your own meals – eating at home saves you thousands of dollars each year and is much more healthy – allowing you to enjoy your retirement years longer.

The bottom line here is, if you want to enjoy your retirement in comfort, start working towards it now. Cut back on your costs, save as much as possible and invest your savings.