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The Best Way to Start Saving Money at Age 60

best way to start saving money at age 60
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We all have good intentions when it comes to saving money, but then life happens. Not to mention, it always seems like there is time to start saving, but then one day you wake up and you’re 60 years old and you haven’t even started. So, if you’re in this position, what is the best way to start saving money at age 60? Read on to find out.

best way to start saving money at age 60
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The Best Way to Start Saving Money at Age 60

If you’re turning 60 and have no savings for retirement, you might be concerned about your future and that’s understandable.

The good news is there are ways to help make that future much brighter.

You can start saving money now and if you follow one or two of these best ways to start saving money, you will be in a much better position when you do retire.

1. Put Off Retirement

A lot of folks think about retiring at 65 years of age. 

For some, that becomes a must due to health issues.

If that’s not the case for you, plan to retire at 70.

This does a couple of things for you.

One, it will give you an additional 5 years to make more money and save more, so that’s a good thing.

Secondly, it will help increase your social security payout.

For example, when my mother started receiving social security, she was managing an antique store.

Even though she could have quit at 65 she continued working. It certainly helped that she enjoyed what she was doing every day.

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The added benefit is that her social security continued to increase each year that she worked.

Once she truly retired, working those extra years did add a few hundred dollars per month in the form of additional social security benefits.

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2. Dramatically Reduce Your Spending

If you want to really go all-in on saving money, you should consider dramatically reducing your spending.

This might be something you have never done before, so it could be a difficult transition for you, but it is necessary if you want to save as much money as you can over the next few years.

So, what does dramatically reducing your spending look like?

You should plan on the following:

  • No eating out
  • No coffee out
  • No travel
  • No gift-giving
  • No mindless spending
  • Living on a strict budget
  • Getting rid of your landline phone
  • Getting rid of cable
  • Only grocery shopping one day per week
  • Keeping the thermostat a couple of degrees lower in winter / higher in summer

The list goes on and on.

I’m sure you can think of things you spend money on daily or monthly that can be cut or eliminated.

Is it fun?

No. It isn’t.

Is it necessary?

Maybe.

It all depends on how serious you are about saving as much money as possible for the next few years.

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3. Find a Second Job

I’m not a huge fan of this as one job is typically more than enough. 

Even so, if you have a few extra hours in your day, then having a second part-time job is a great way to save more money.

If your full-time job pays the bills then all of this extra money can go straight into the bank.

Over a few years, this can really add up.

Even better than a second job is finding a side gig.

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If you can find something you can do in your own time that you enjoy, you can easily make money and have the savings you need for retirement. 

What’s great about a side gig is that you don’t have a second boss. There are no annoying co-workers to deal with.

You can work at it on your own time and in your own way.

There are a million possibilities, but you can sell stuff on eBay or Amazon or make items to sell on Etsy.

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You can also freelance.

If you have a skill there is a market for it out there.

In a few months, you could easily create a full-time income if you put the work in.

Then you will be able to supercharge your savings.

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4. Wait to Claim Your Social Security

While this isn’t exactly saving money, it does allow you to create more income down the road.

Depending on your age, you will be able to start receiving your social security at the age of 65 to 67 ½.

If you can wait until you are 70 to begin your social security, you will greatly increase the amount you receive each month.

In fact, you could increase your monthly payment by $1,000 dollars or more per month.

That additional social security will give you a bigger cushion to cover some of the retirement savings you don’t currently have.

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5. Increase your 401(k) Contributions

If you haven’t already maxed out your 401(k), now is the time to do so. 

The great thing about this type of investment is that it comes out of your salary before you receive your paycheck.

That means you don’t have to do anything. 

It puts your savings on autopilot.

You also don’t have to pay taxes on that income until you withdraw it.

If you don’t have access to a 401(k) or if you have maxed it out, you might want to consider adding an IRA.

You can either get a Roth IRA or a traditional IRA.

Currently, you are allowed to contribute $6,000 dollar a year as well as $1,000 dollars if you are over the age of 50.

You’ll want to talk to your investment counselor to determine which option makes the most sense for you.

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6. Get Your Debts Pay Off

I know that you want to save money, but if you have debts, you really need to get them paid off. 

It goes without saying that the less debt you have, the less money you need to live once you are retired.

There is a book about this called, “Your Money or Your Life.”

It is a great book, and even if you are younger, it can change your life and the way you see money.

It can also help you retire much younger as well.

To Sum it All Up:

If you’ve just hit the golden age of 60 but haven’t been saving money for your retirement, you might be wondering the best way to start saving money at age 60. Luckily, there is more than one way. You can reduce your spending, plan to retire later, or add an IRA to your investment portfolio. 

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