Are you a late saver? Try these 4 tips to rev up your retirement fund

Written by Donny Donny

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Last Updated: October 10th, 2008

1) Sum it all up.

Calculate your spending for all of your major monthly expenses. The easiest way to do this is through online banking. Just go through the past 3 months of your online statements and total expenses for food, medications, mortgage and housing expenses, transportation, and credit card payments. Estimate how much “walking around money” you can get by on and then cut that amount 25%.

If you don’t bank online consider doing so—even if you use a credit union—this way you have a quick and easy way to track and calculate spending.

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2) Create additional income sources.

If you already work full-time, find out if over-time pay is an option. Also think about what skills in your current job you can use to start an online business. Jobs like virtual assistants, editing, and tutoring have very little overhead and are easy to start up.

Perhaps you have a hobby that can bring in additional earnings. Are there books, tools, or vintage clothing that you can sell online through eBay, Amazon, or other online auctions? You could also make anywhere from $50 to $200 just by participating in focus groups. Find these opportunities on Craigslist or a keyword search “focus group companies”.

3) Take advantage of a tax free capital gain.

Married couples can take a $500,000 tax-free capital gain of their primary residence if they live in it for two out of five years before the home is sold.

4) Buy used and start repurposing.

Make a 6 month to year-long commitment to only buy used clothing and household items. Do this and you won’t just save money but you’ll create a new way to have fun with your friends and family.

Just avoid making online purchases so you won’t spend extra on postage and convenience charges. Find bargains at estate and garage sales. Check out thrift stores like Savers, Goodwill, and the Salvation Army.

What is repurposing? Well, the other day I needed a wash bin for my kitchen sink. Instead of buying a new one for 6 bucks, I now use the plastic top to a cake holder I never use. It’s perfect.

Use these tips and watch your 401K account or IRA investments pile up.

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