4 Tips for Sticking to a Retirement Savings Plan
Planning out your retirement savings doesn't have to be difficult or complicated. Actually, the trickiest part comes next – when you have to consistently contribute the amount specified in your plan to your retirement savings accounts. Even the best retirement plan won't do you any good if you don't make regular contributions, which is why more than half of all Americans have less than $10,000 in their retirement savings accounts. If you're having trouble sticking to your contribution schedule and don't want to retire broke, try these helpful tips.
Expenses are like goldfish: They'll grow to fill whatever container you put them in. In this case, the "container" is your disposable income. You've probably noticed that any time you get a bump to your income, such as a raise or a better-paying job, the extra money disappears into your daily expenses quite rapidly. However, you can get around this financial predicament by simply paying yourself first. In other words, when your paycheck comes in, the first thing you do is take the amount specified in your retirement savings plan and stick it into your IRA. If you set a lower priority on contributing to your retirement savings, other expenses will inevitably gobble up all your income before you can get to it.
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Source: Fool.com
