Do you struggle to figure out where your money for retirement savings will come from? 78 percent of full-time workers live paycheck-to-paycheck, and having extra money for any type of savings can seem extremely difficult.

Fortunately, there are strategies you can use to help you squirrel money away despite the obstacles. Here are four ways to get save for retirement even when money is tight!

Start With Your Employer’s Retirement Plan or an IRA

Sometimes people struggle because they simply don’t know where to start with savings. There are so many things to save for – what do you start with?

Starting with your employer’s retirement plan has two big advantages. First, you can have the amount you want to save automatically deducted from your check and put, pre-tax, into your retirement account.

Second, your employer may match at least part of your investment – which means you get free money for your retirement!

If you own your own small business, saving for retirement is a bit harder. However, you can start an IRA. Contributing to a traditional IRA can reduce your tax burden, and a ROTH IRA has the advantage that earnings are not taxed when you withdraw during retirement.

Both are great choices! You can get professional investment advice to help you decide between them.

Invest Your Raises

People who live paycheck-to-paycheck struggle to fit their budget into their pay. But they manage.

What happens when you get a raise? Usually, you spend more – and continue living paycheck-to-paycheck with no savings.

Instead, make a decision to invest your raise. After all, if you were making the bills before, you’ll keep making them even without the raise. So automatically have the percentage amount of your raise invested for retirement!

If you own a business, consider investing a portion of the growth in your income as well. Again, it can have great tax benefits.

Use Direct Deposit to Make it Painless

Too many people try to save by using what’s “leftover” at the end of the month.

Unfortunately, there’s not much leftover, which is why 21% of Americans have nothing saved for retirement at all!

Instead of leaving it to chance, take advantage of direct deposits into your retirement account. When saving for retirement, it helps to make it as easy and painless as possible. If you can have it directly deducted from your paycheck before you even see it, it’s even better!

Save first, and work on your budget and bills afterward. Your future self will thank you.

Break Your Overspending Habit

One of the top reasons that people struggle in saving for retirement is that they overspend. It’s not always obvious. How often do you “treat yourself” because you “deserve it?”

$20, $30, and $40 purchases add up much more quickly than you think. It’s not that you’re off buying a boat, it’s that the little purchases you make are crippling you.

The best way to break your overspending habit without feeling deprived is to simply budget for it! Set yourself a specific “fun budget” each week, and stick to it. You’ll be in control of your cash and you’ll get to have fun at the same time.

Start Saving for Retirement Now!

The best time to start saving for retirement is when you start working full-time. The second-best time is right now. You can start with an IRA or your employer’s retirement plan and use automatic deduction.

There are no excuses – get started! If you’d like help, we can help you create a plan. Contact us today!