People who retire on Social Security alone tend to struggle financially. This is something I know based on both research and anecdotes from seniors I know who are having a hard time coping with living costs based on what their monthly benefits pay them.
As such, I'm very motivated to build up a nice amount of retirement savings. But that doesn't mean it's an easy thing to do.
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Like many people my age, I have a host of bills to contend with, from mortgage payments to child care expenses to food that needs to go on the table. And every dollar I put into my retirement plan is money I don't have for leisure purposes. That money can be difficult to give up.
But thankfully, I've gotten into a pretty decent groove when it comes to retirement savings. That's because I consistently do these three things.
1. Automate the process
I don't like to take chances when it comes to meeting my retirement savings goals. So I've set up an automatic transfer that allows money to land in my retirement account each month before I get a chance to spend it. That way, I won't give in to temptation and spend money I should be earmarking for retirement on things like concert tickets or a last-minute trip.
2. Invest my savings aggressively
I wasn't always comfortable with the idea of investing in stocks. But thankfully, I realized pretty early on that if I didn't invest my retirement savings in the stock market, I'd limit the extent to which my money would grow.
These days, I'm far more at ease with the idea of investing aggressively since I know that investing too conservatively carries just as much risk. This way, my investments get to do a lot of the heavy lifting for me.
3. Picture the impact of a decent-sized nest egg
It's hard to imagine myself as a retiree. Sure, I can envision a version of myself with grayer hair and perhaps a bit less energy. But because retirement is years away, it's hard for me to get a handle on what that period might look like.
Still, one thing I make a point of doing is playing out different scenarios in my head where I get to enjoy a comfortable lifestyle by virtue of having saved well. In one such scenario, I've retired to a small cottage by a lake where I spend my days reading, writing, kayaking, and hanging out with my seven dogs. In another scenario, I live in a secluded, wooded cabin with my books and pets.
The point, either way, is that picturing myself enjoying retirement helps motivate me to keep funding my nest egg. And it makes me feel better about the things I'm giving up today to do so.
Socking money away for retirement is by no means an easy thing. But if you adopt these habits, you may find that it's not quite as difficult as it once was.
