We’re all aware of the critical nature of saving for retirement. Yet, carving out funds for your future can prove daunting. When finances are tight, and various expenses compete for your budget, there might seem to be little or no room left for building your nest egg. How can one possibly save for tomorrow when today’s resources are stretched thin?
Even if your current income doesn’t allow for saving, there are still avenues to bolster your retirement funds. It merely requires a bit of creative thinking beyond conventional methods.
- Utilize Your Tax Refund
Many individuals fantasize about how to spend their tax refund, often the most substantial windfall of the year. Last year, the IRS reported an average tax refund of $2,763. If you’re receiving a refund this year, consider channeling it into your retirement savings instead of splurging on gadgets or a getaway. Through the magic of compound interest, that refund has the potential to grow significantly by the time you retire.
- Channel Your Credit Card Rewards
If you have a credit card offering cash back rewards, this could serve as a steady stream of additional funds for your retirement account. By using your credit card for everyday expenses like utilities, gas, and groceries, you can effortlessly accumulate extra cash. Just ensure you’re paying off your credit card balance in full each month.
- Leverage Cash Back Apps
Even without a cash back credit card, you can still earn money while doing your regular shopping. Apps such as Ibotta or SavingStar provide cash back on grocery purchases, while platforms like eBates offer a percentage back on various online purchases. You’ll receive a portion of your spending as cash, which you can then direct straight into your retirement savings. It’s a simple way to boost your funds while sticking to your usual routine.
- Explore Side Hustles
If you have spare time in the evenings or on weekends, consider launching a side hustle for some additional income. From pet sitting to freelance tasks, there’s a plethora of side gigs you can undertake in just a few hours per week. This extra income can significantly contribute to your retirement savings over time.
- Declutter
Sell Survey your surroundings for unused electronics, textbooks, toys, and other items gathering dust in your home. You might discover several thousand dollars’ worth of clutter that can be converted into retirement savings. Sell these items on platforms like eBay, LetGo, or Bookscouter to earn cash while streamlining your living space.
- Monetize Spare Space
Have an extra room? Consider renting it out on platforms like Airbnb or VRBO, potentially earning hundreds per night depending on your location and space size. Don’t have a spare room? No problem. You can still generate income by renting out a spare closet or garage space on platforms like Spacer, or by leasing your parking spot via SpotHero.
- Sell Your Photography
If photography is your passion, why not turn it into passive income for your retirement savings? Explore selling stock photos on platforms like iStock or Shutterstock, showcase your artwork on online portfolios or craft sites like Etsy, or market your smartphone photos through apps like Foap, connecting photographers with brands seeking images.
- Lease Your Vehicle
If your car sits idle most days, it could be a lucrative asset. Rent it out to tourists or business travelers through services like Turo, setting your own daily rate. According to Turo, with a car valued at $20,000 and renting it for 12 days monthly, you could potentially earn nearly $5,800 annually, potentially reaching the contribution limit for an IRA.
- Cash in on Clothing
Clear out unused clothing, handbags, or shoes taking up space in your closet and turn them into cash. Sell them online via platforms like Poshmark or Tradesy, or visit consignment stores like Plato’s Closet or Clothes Mentor. Even a single bag of clothing could fetch a couple of hundred dollars to contribute towards your retirement fund.
