Saving for retirement is an important step in everybody’s life. Unfortunately, it is a step that is often overlooked by most freelancers. No matter where you are in your freelancing journey – whether you are just starting out or are a career veteran, you can start saving for retirement and building your nest egg, NOW. By following tips below, you can ensure that you will have enough money saved for retirement.
Get Started
The first step is to get started. If you go through an online or contracting company, and the company offers a retirement plan, enroll in it immediately and start saving. If you are self-employed, enroll in a program at your local bank or choose an online Discover account that will allow you to set aside part of your earnings toward retirement. The general rule of thumb is that you should set aside ten percent of your earnings toward retirement. Depending on your needs and the length of time you have to save before you retire, you may be able to save more than ten percent.
Pay Down Debt
Reducing your short term debt can positively affect your credit score which will help you save more for retirement. Aggressively pay down debt by throwing any additional funds that are not earmarked for retirement at your debt. The popular snowball method touted by financial gurus like Dave Ramsey uses this principle to quickly reduce debt. When debt is paid off, use your freed up funds to add to your retirement savings. If you have a credit card or a store line of credit, pay it quickly to free up your retirement funds.
Earn Additional Income
Depending on your age and how long you have until retirement, you may have some catching up to do when it comes to savings. Earning just a few hundred extra dollars a month will go a long way in contributing to your retirement savings. Bring in extra cash by adding alternate skills to your freelance portfolio – example, if you are a writer, then pick up skills like ebook formatting or conversion to kindle format etc, and offer “package” services to your customers. Similarly, you can try to combine design skills with website setup services, writing + copywriting, social media + SEO etc. Even small amounts of money add up over time, and you will see your savings grow month after month.
Start Early and Save Less
The younger you are when you start saving for retirement, the less you have to save. While most teens don’t think about retirement, the high school years are a great time to start saving. Teach your teenagers about the value of investing for the future, and they will see their money go far.
When it comes to saving for retirement, the key is to just get started. Open a retirement account today, so that you can enjoy the retirement you would like when you are of age.
I totally agree that teens should start saving for retirement and I think the earlier, the better! With people being so caught up in today, it can be difficult to think about tomorrow but it’s something that must be done. Thanks for the great article!
Considering retirement money in your teens? I think this is a bit too much. Who knows how long we will, what awaits twenty years, one year, one month, one day down the line. Yes looking to future can be important but let’s not go on about saving excessively and lets not put pressure on the young, Let them be young while they can.
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I don’t think the idea is so much actually starting to accrue any legitimate amount of money as much as it is developing a proper mindset to plan for the future and handle finances responsibly. It is never too soon to learn how to start saving and properly budgeting your money, and I think this is the goal of “saving for retirement” at such a young age. It also is a good lesson in what saving for retirement actually means, and when it comes time to actually start putting a good amount of money away, you’ll have plenty of experience with what to do, what to avoid… things like that.
Saving for retirement, whether you start at a young age or midlife, has both its advantages and disadvantages. It always depends on your own set of priorities. One should always think of how they can benefit from it in the long run and thus manage their finances sensibly.
Saving is a good thing. However I agree with a comment above that asking teens or high-school kids to start saving up for retirement is an exercise in futility. I mean hey, I’m all for teaching my kids about the value and importance of money and savings and all that but its a good idea to start saving up when you start earning some real money, not when you’re getting allowance from your old man!
CraigStevens recently posted..How to Increase Your Mailing List and Email Subscriptions Substantially
freelancers??!! saving for retirement?!!! bahahahaha. No but seriously, i good idea for freelancers is to set up an automatic monthly transfer of some set amount from your checking to savings. then u barely even have to think about it
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Saving is always highly recommended. Definitely, starting early enables you to save less. However, it also depends on how capable you are when it comes to managing finances. If you have got the necessary skills, you can benefit yourself in the long run even if you start a little late.
Thanks for these tips.
Faissal Alhaithami recently posted..First 5 Steps to Start Your Own YouTube Channel
I admit you can make money out of trash but first, it is not that easy and second , you can make money once or twice but not every time. However there are some good strategies by which you can build it like a full fledged business, either full time or part time.
Saving up for retirement is a must-do. But personally I save what I can but I make sure that I do not compromise the now that I live in for a future I may not live long enough or be too sick to enjoy. I have known a number of people who never went on trips/vacations or splurged to save up for retirement only to have fallen really sick (too sick to do any kind of traveling) when the time came for them to retire. I say, live responsibly and within your means but enjoy life and travel as much as you can while you still can.
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As it is said, “prevention is better than cure”; savings will always help you in future. But I beg to differ on just saving. Investing your money will help you earn major returns in the future.
Chetan Vengurlekar recently posted..Website Promotion
alarming article for freelancers as saving for future or holidays has become a necessity it present era.
nicely written article.
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