Personal Finance Retirement Saving

How to Save $1 Million for Retirement on $30,000 a Year

In some cases, debt may be the stumbling block you’re running into, rather than overspending. If you’ve got student loans or credit cards, getting rid of them is the obvious answer to saving more but it’s easier said than done. To speed the payoff process along, consider refinancing your loans or consolidating your credit cards with a 0% APR balance transfer. When you reduce your interest rate, more of your payments go towards the principal, allowing you to clear the debt faster.

5. Stick to low-fee investments
Investment fees can erode your efforts to save and when you’re only making $30,000 a year, you’ve got to make sure every penny counts. Index funds and exchange-traded funds are ideal when you’re investing on a shoestring. These kinds of funds offer broad exposure to the market without taking a big bite out of your investment returns for fees.

6. Automate your savings
Saving money is a habit and it’s easier to adopt for some people than others. Putting contributions to your retirement accounts on autopilot can take some of the guesswork out of it. When you’ve got money coming out of your paycheck and going into your retirement funds automatically, you don’t have the chance to spend it. That’s something you’ll be glad of down the line once you’re ready to retire.

How are you planning to save for retirement? Tell us below!

About the author

Rebecca Lake

Rebecca Lake is a personal finance writer and blogger specializing in topics related to mortgages, retirement and business credit. Her work has appeared in a variety of outlets around the web, including Smart Asset and Money Crashers. You can find her on Twitter at @seemomwrite or her website, RebeccaLake.net.

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