Trick yourself into saving for retirement - KAIT-Jonesboro, AR-News, weather, sports

Trick yourself into saving more

Are you looking to set aside some money for retirement? If it seems like it's getting harder and harder to accomplish, we've got some saving strategies to help you bank some more bucks.

First, before you spend money on something you want, rather than need, convert the dollar cost into your personal time. In other words, figure out just how many hours you'd spend working to pay it off.  You just may decide it's not worth it. Then put that money you would have spent into your retirement fund!

Another trick - when you're looking at spending money on something, think about what the money could buy you in retirement. One example - you're looking at buying a new $30,000 car. Plan B is to buy a used car for $15,000. Use the 4% retirement income withdrawal rule, and that $15,000 dollar would mean another $600 a year in retirement. While that isn't a fortune, it could make a difference if you're living on a fixed income.

If the idea of saving for something as vague and distant as "retirement" isn't motivating you, come up with some specific categories.

Maybe a "retirement travel fund". This isn't just a fun idea - a study in 2009 found parents saved twice as much in education accounts labeled with  the kids' pictures than they did in accounts simply labeled education.

And the top tip, of course, is to make your savings automatic. Have a set percentage of each check direct deposited into retirement savings.

Copyright 2012 America Now. All rights reserved.

Powered by WorldNow

472 Craighead Co. 766
Jonesboro, AR 72401
(870) 931-8888

FCC Public File
(870) 336-1816
EEO Report
Closed Captioning

All content © Copyright 2000 - 2014 Worldnow and KAIT. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.