If financial stress is affecting your ability to save for retirement, you may have to work longer and you may also risk running out of money in retirement. But getting started as soon as you can could help you reach your retirement goals faster.
If you’re anxious about your ability to save for the future, here’s how you can manage those feelings and get on track.
1. CREATE A REALISTIC BUDGET
“The first thing will be to get organized — you know, the big, bad B word, it gets a bad rap, it’s budgeting,” says Lauryn Williams , a Dallas-based CFP and Olympic medalist in both women’s track and field sprint and two-woman bobsled.
Budgeting can help you save more, because you’ll learn where your money is going, which can free up opportunities to shift your priorities. Williams suggests creating a “bucket budget,” which is a set amount you can spend in each financial category. Examples of buckets include household items, recurring bills and entertainment. Retirement can be a bucket, too.
“It’s not accounting for every single penny, (or) every single transaction, which can be really overwhelming and create more financial stress, especially if you’re doing it on your own,” she says.
Another budgeting tip Maggie Gomez, a CFP based in Orlando, Florida, suggests is downsizing, so you have more money to pump into retirement savings. For instance, you could get a less-expensive car or get a roommate to cut housing costs.