Three Easy Ways to Save More

Saving for retirement is a lifelong challenge. Don’t wait for a perfect time in life to save – start now!

When you're young and just starting out in your career, you may not have as much extra money to set aside for the future. Then as you get older, the bills start piling up and it becomes difficult to balance retirement saving with a mortgage, kids, and a long list of other financial responsibilities. Unforeseen financial events can also sometimes knock you off stride. Before you know it, you're nearing retirement age with little to nothing socked away.

Fortunately, there are a few simple things you can do right now to start saving more.

1. Set Up Automatic Transfers to Your Retirement Account

It's best to start saving for retirement as soon as possible because your savings will have more time to enjoy compounding growth and they'll be bigger when you need them. The bottom line is don't put it off. By automatically transferring money to your retirement account each payday, you force yourself to save regularly – that means you'll end up with a stronger nest egg when it's time to retire.

The goal is to make saving for retirement an effortless activity so that it becomes part of your financial routine. Think of retirement saving as if it's another bill you must pay, like paying rent. While there may not be short-term consequences to not saving, the longer you put it off, the harder it will be to catch up.

2. Contribute a Set Percentage of Your Income

Automatically transferring a portion of your income to your retirement account makes saving easy and effortless, but it's still important to regularly adjust how much you're saving. When you first start saving, you may not have much to set aside. But as your income increases, your retirement contributions should increase accordingly.

One easy way to increase your retirement savings is to contribute a certain percentage of your income. Then when you get a raise or a bonus, your retirement savings will see a boost too. The DCP makes it easy for you to save a percentage of your income through the percent-of-pay feature. Learn more here!

The exact percentage of your wages that you should save depends on your age, how much you already have in savings, and what age you plan to retire. Consider saving between 7% and 10% of your salary, but you may need to save more if you're off to a late start.

3. Write Down Your Financial Goals

Setting financial goals is one thing, but actually achieving them is another. It can be challenging to stick to it throughout your working life. But research shows that one easy way to help yourself reach your goals is to write those goals down.

A study from the Dominican University of California found that more than three-quarters of people who established goals, wrote down action steps to achieve them, and sent a progress report to a friend were able to either achieve their goals or make significant progress in achieving them. In contrast, only 43% of those who simply thought about their goals made the same progress.

No matter what stage of life you're in or how much money you're earning, saving for retirement can be challenging. But it doesn't have to be as difficult as it seems. By taking it one step at a time and making small lifestyle adjustments, you can set yourself up for financial success.