Monday, 13 July 2009 10:16
Are you ready to invest more in your retirement savings but just not sure where you will find the extra dollars to invest? Sometimes the best way to increase the funds you have available to invest is to review your current investment strategies and also reduce your monthly expenses. Here are just few tips that might produce a sizable sum to invest.
Make sure you are maximizing your 401k deductions. Did you know that because of the advantages of using pre-tax dollars the impact to your monthly take home pay is not as significant as you might think? Increasing your 401k contribution will not be a dollar for dollar reduction in your net check you receive. Your 401k might provide the best avenue for investing more without changing your monthly budget.
Eating at home more often is another great way to have more money to invest. If you have a family of four, eating out is likely to cost you on average $50 each time you dine outside the home. If you eat out three times per week, that’s $600 per month. Eating at home for a family of four could cost $20 or less. Choosing to stay home one time per week instead of dining out could yield $120 per month to invest.
Be aware of opportunities to refinance your mortgage to a lower rate. If you haven’t refinanced in awhile, now might be a great time to consider that option. Mortgage rates are still very low compared to historical rates. You might be able to lower your monthly payment by $100 to $200 per month providing extra funds that can be used to invest in your retirement funds.