Saving for retirement can be hard if you’re self-employed. It takes a lot of planning and discipline to do it right, and sometimes creativity to come up with the extra funds. That doesn’t have to stop you from creating a nest egg to take you into your golden years.
Consider moving outside the traditional box to come up with money, then know how to invest it right.
The best way to build a nest egg for retirement is to invest what you can in ways that will create more revenue for you.
1. Franchise out. Not your self-employment, but consider the benefits of purchasing a franchise that you own, but staff operates. Finding the right one doesn’t have to be hard. UPS was recently voted one of the best franchises to own by Entrepreneur. And that’s just one example.
2. Go for IRAs. It may be a bit traditional, but that’s because they are effective. It’s important to know which types of retirement accounts are best for the self-employed though.
3. Buy real estate. At one time this was not typical. Families owned one home, and that was where they lived. Today things have changed. People are investing in real estate to help build a nest egg. You don’t have to buy homes. There are a variety of ways to invest in real estate.
Save the Money
Don’t have money to invest? No problem! Give yourself a couple of different outlets to saving up money.
1. Give yourself tips! If you eat out, tip yourself the same amount you do the waitress. Take that money and set it aside either in a savings account or tip jar. If you eat at fast food joints, give yourself a dollar every time you drive through.
2. Make payments to yourself. If you just paid off a loan, don’t stop making payments. But instead of giving them to the bank, give them to yourself. The same goes for utility bills that are lower than expected. Take the extra money you budgeted and save it! It’s a great way to save money toward retirement.
3. Spend discounts. If you like seeing that “savings” tag at the bottom of your receipt, take that money you saved and set it aside. The average savings at a store is anywhere from $2 to $50. Imagine how quickly that will add up.
4. Don’t use your tax return. It can be hard to save the money the government gives back, but if you do, that’s a significant number to add to your nest egg. While you may feel you need it right away, the truth is you will need it later even more.
5. Quit bad habits. Cigarettes and alcohol consume a significant portion of your monthly budget. Try stopping the habit and saving that money instead. Even if you only cut use in half, you are likely to save a lot of money for investing.
No matter how big or small your budget for retirement is, using a little creativity can go a long way in building a nest egg.