{"id":49143,"date":"2018-06-12T04:15:02","date_gmt":"2018-06-12T11:15:02","guid":{"rendered":"https:\/\/lenpenzo.com\/blog\/?p=49143"},"modified":"2025-12-27T11:18:52","modified_gmt":"2025-12-27T19:18:52","slug":"how-to-save-for-retirement-when-you-dont-make-a-lot-of-money","status":"publish","type":"post","link":"https:\/\/lenpenzo.com\/blog\/id49143-how-to-save-for-retirement-when-you-dont-make-a-lot-of-money.html","title":{"rendered":"How to Save for Retirement When You Don’t Make a Lot of Money"},"content":{"rendered":"

\"\"<\/a>Work for 30 years, retire, and enjoy your golden years, without doing too much to save for retirement because Social Security plans are enough; it may sound like science fiction now, but decades ago retirement planning was as simple as that for most people.<\/p>\n

Today, with the baby boomers retiring and newer generations failing to close the demographic gap, smart retirement planning is a little different. In the US, saving for retirement<\/a> is a must, unless you want to work forever.<\/p>\n

Todays workforce is required to save and invest in order to ensure that they have a retirement planning guide, and can support themselves during their so-called “Golden Years.” However, for those with a limited income, such a task can seem impossible.<\/p>\n

And yet, think about it: If it’s difficult to save for retirement now<\/em><\/strong>, when you have at least some<\/em><\/strong> income, how will you survive when that income is gone? With that in mind, here are some quick ideas to plan for your retirement:<\/p>\n

Reconsider your priorities<\/strong><\/p>\n

“Lifestyle creep” or “lifestyle inflation” describes the same weird phenomenon: once we start earning more money, we find new “needs” we never had before. Living this kind of lifestyle will prevent you from saving money because instead of keeping your extra income, you’ll end up looking for endeavors that will require you to spend more. Over time, this lifestyle can become the reason why you’ll see yourself having too much debt even if youre earning a lot of money.<\/p>\n

Here’s a personal example: Ten years ago I was happy to have a small $100 point-and-shoot camera. But as soon as my income increased, I realized I couldn’t live without carrying a much fancier camera that cost ten times more. You know the story; chances are you’re<\/em><\/strong> overspending as well. So why not make an effort and cut back on this buying marathon? For example, don’t buy new gadgets, if the older ones are still perfectly functional. And don’t buy a new car every few years, if your current one is in perfect condition.<\/p>\n

Instead of buying yet another piece of junk to clutter your house<\/a>, use that cash to build your retirement saving account. Although it can be tempting to spend the moment you receive extra cash, discipline yourself to think long-term and save for your retirement. This process can be challenging, especially if you’re fond of buying impulsively all the time, but if youre looking forward to living comfortably during your retirement, saving money can eventually come off easy.<\/p>\n

Start saving for retirement ASAP<\/strong><\/p>\n

Don’t wait until you’re 40 or 50 years old to start contributing — begin at age 30 or, even better, in your twenties. One of the biggest misconceptions people have when it comes to saving for their retirement is that they have all the time in the world to do it, that’s why a lot of them keep putting them off. This isn’t true because time flies by so fast, and the next thing you know, you only have ten years left before you retire.<\/p>\n

If you want to live comfortably when you retire, make sure to start saving as soon as possible. The sooner you start with your efforts, the more money you can enjoy in your retirement. Saving early will also increase your chances of succeeding in your efforts because you’ll still have time to test out different strategies in saving, and figure out what works for you.<\/p>\n

As an example of how long-term savings work, if you save $100 per month with an 8% annual return:<\/p>\n