Saving up for retirement isn’t an easy task. Not only does it cost a lot of money, but it’s not necessarily the most glamorous thing to put your savings toward. Maybe you have your sights set on a new blazer to add to your Fall 2019 wardrobe, or perhaps you’d rather put your hard-earned dollars toward a weekend trip to San Diego. But if you want to eventually enjoy your retirement at its fullest when the time comes, you’ll need to start saving well in advance. But before you make excuses for your company’s lack of a 401k program, remember that there are plenty of other ways you can start building your retirement savings even if you aren’t eligible for an employee-sponsored retirement plan.
If you’re looking for unique ways to save up for your retirement without having a 401k, you’re in the right place. In this article, we’ll discuss 4 creative ways you can start building your savings today.
1) Use your assets wisely
Since your income will likely be limited when you retire, it’s important to use the financial assets that you currently have to your advantage when saving for retirement. If you have property, for example, you might consider leasing it out as you can to bolster your savings. Perhaps you can lease out a section of your home to a tenant or on a vacation rental site for a less permanent solution.
Another way you can use your property as a retirement savings asset is with a reverse mortgage. A reverse mortgage converts the equity you have in your home into cash that you can ultimately fund your retirement. Of course, there are plenty of considerations to make with any major financial decision, so be sure to do your research. This reverse mortgage explained article provides some more helpful insight to determine if this option could work for you.
2) Build your investments
In addition to real estate investments, you may have some other financial assets like stocks, bonds, or CD accounts that could build a great foundation for your retirement savings, even if you don’t have a 401k savings.
If you haven’t developed your financial profile thus far, here are some tips to help you do so:
- If you are investing as a beginner, use an investment app to help you make and manage your investments.
- Before liquidating your assets, consider the market and other indicators to decide if it’s really the right time to sell.
- Don’t invest blindly—consider a number of different industries and investment avenues to choose the best investment method for your current finances and retirement situation.
3) Save up your bonuses
If your hard work’s paid off throughout the year and you’re lucky enough to receive a bonus, you might be tempted to spend it on something to reward yourself now, but saving it for the future could be even more rewarding in the long-run. That’s not to say you can’t treat yourself to a well-deserved treat, but you may want to allocate a certain percentage toward your retirement savings too!
In addition to saving your bonuses, you can also do the same for any tax returns you’re issued at the end of the tax season. Typically these kinds of contributions are larger than those you’d make periodically throughout the year, so they’ll definitely make a sizeable difference.
4) Get a part-time gig
Even if you already know the importance of saving up for retirement, you might feel like it’s impossible to do so when you have rent to make and bills to pay. And although every dollar counts, it might not feel like you’re making enough progress. One consideration you might make is getting a part-time job to fully allocate toward your retirement savings. This way, you’ll accrue a more substantial amount and you can keep your primary income and secondary income separate.
There are plenty of opportunities to make a few extra bucks here and there, even if you don’t have tons of time to spare. Here are a few ideas:
- Freelance writing
- Seasonal jobs
Saving for retirement without a 401k isn’t always the easiest route, but it’s entirely possible if you follow these tips!