6 Easy Tricks to Help You Save for Retirement

Don’t Allow Yourself Get Distracted by Debt

Excessive debt is one of the biggest obstacles on the path to retirement. If you already have some debt-related headaches now is the time to turn that around with a debt reduction plan. But if you aren’t there yet, avoid allowing debt to derail your retirement plans.

Some forms of debt such as mortgages and student loans can be better than others when they are incorporated into your overall financial life plan.

On the other hand credit card debt, high interest personal loans, and auto loans can create a vicious cycle of debt payments that make retirement appear impossible at times.

Here are a few simple tips to help you avoid the debt distraction:

  • Be a little different than the average American and create a personal spending plan
  • Always pay off your credit card balances in full each month
  • Wait 24-48 hours before making any large purchases
  • Try to keep your basic living expenses below 50% of your total household income (see this article on the 50/30/20 budgeting rule for more information)
  • Make discretionary purchases with cash instead of credit using an envelope method
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