5 Blogs to Boost Your Retirement and Reduce Debt NowJan 17, 2019
Are you worried that you neglected retirement savings in 2018? Maybe you didn’t save as much as you’d like to and want to spend a year boosting your RRSP? A new year is a fantastic opportunity to make financial goals, and taking steps to reduce your debt can help you build your retirement fund.
There are certainly numbers to back up that Canadians are feeling unsure and unprepared when it comes to retirement. According to our 2018 Affordability Index survey, 64 per cent of respondents said they had “too little in retirement savings, or none at all”. An eye-opening 82 per cent of respondents said that they feel financially unprepared for retirement.
Boosting your savings and relieving this stress doesn’t have to happen all at once. With January as your starting point, find some resources to motivate you toward turning the tide in 2019. Oh and, of course, cutting back on non-mortgage debt and getting debt help when needed should be part of your plan.
Here are five blogs to help you reduce your debt so you can boost your retirement plans this year.
- Learn about how one family paid off $100,000 in debt on one income. Sometimes hearing how others reduce debt can get you thinking differently about your own situation. In this blog from And Then We Saved, hear about how education, communication, and frugality can add up to serious savings — enough to pay off your debt and focus more on retirement savings.
- Does paying down debt prevent you from saving? It can be hard to know whether to prioritize retirement savings if you’re someone with existing debt. This blog from our national site gets into the 50/20/30 rule, and how to break up your budget so that you can do both effectively.
- Balance your retirement with other goals. Obviously retirement is just part of your larger financial plan. If you need help with your debt, it can be hard to weigh these two goals against each other. This blog from personal finance blogger Jordann Brown gives advice on how to balance retirement with other goals, with an aim towards a younger generation.
- Think about a lifestyle change. Maybe you’re thinking big when it comes to finding ways to save money. This article from Latoya Irby at The Balance explores the more drastic measures you can take to eliminate debt, which could provide you with more room in your budget for retirement savings. Are you renting? Maybe you can take on a roommate. Do you have two vehicles? Downsizing to one vehicle can be a significant source of savings (it can also eliminate a vehicle loan payment). These moves might not be for the faint of heart, but the daring can find a lot of their income freed up by pursuing them.
- Explore debt consolidation. As part of a larger plan for January, exploring solutions like debt consolidation can be beneficial. A consolidation loan takes your multiple debts and combines them into one easy-to-manage monthly payment, often with a lower interest rate than the debts would be separately. This blog from Boomer & Echo includes debt consolidation as one part of a total strategy of what you should consider to reduce debt in the new year. There’s also some other helpful advice for setting January goals.
Do you have other tips for boosting retirement savings? Share them on social media and join the conversation, using hashtags #LeaveDebtBehind, #ChangeYourMind, and #DebtSolutions.