Tips for Boosting Your Nest Egg | Richard Banks & Associates, P.C.

Perhaps you’re 30 years old and in the midst of a flourishing career or 50 and nearing that stage of “when should I retire.” No matter what stage of life you’re in, it’s always ideal to find additional ways to boost or build up your nest egg.

It can seem confusing to discover exactly how much money you should have saved up for retirement. Often it is said to have a $1 million to $1.5 million nest egg, or you could have savings adding up to 10 to 12 times your current income.

There is no definitive number for the “right” nest egg amount, but by understanding what your potential living costs will be, you can at least decide on an amount to strive for.

Boosting That Nest Egg

Building up a nest egg doesn’t need to be intimidating, but it will take some work and extra effort occasionally.

Here are five tips that you can use:

1. Create a budget. Make sure you’ve freed up part of your income for saving by creating and following a budget.

2. Live below your means. Work at cutting out some non-essential expenses and putting that money aside for your nest egg.

3. Increase retirement plan contributions. If you’re able to, put more money into your IRA or 401(k).

4. Utilize employer-matching dollars. If your employer is offering matching incentives for 401(k)s, make sure you’re actually using it!

5. Invest wisely. Having a retirement plan is great, but you could grow your nest egg exponentially with the right types of investments.

Focus on Investing

Saving and investing are two very different things, offering very different end results. Opting to take advantage of compound growth is always advisable. It is something you’ll want to start working on right away, or from a younger age, to maximize the time your investment has to grow.

An easy way to begin investing is to set aside $100 a month if possible. Again, compound growth comes into play as your money is given time to grow. If you go the stock route, you could see dividends begin to pay off the longer you stay invested.

Ultimately, you should be focused on investing your money where you are most comfortable and will see the biggest return on said investment.

It doesn’t matter what stage of life you’re in, there is always time to make sure you’re being set up for future financial success. Richard Banks & Associates can help you decide if bankruptcy is the right choice for solving your financial issues.