The 5 Craziest Ways Millennials Can Save Money To Retire Early
They say you’re never too young to start saving for retirement, and it’s true. The problem is for many young people that retirement seems like a long way off and they don’t have the money spare to start saving for retirement.
In fact, most young Australians are too busy trying to raise a deposit, the average age they can afford to buy their first house is 31-33.
That’s why, when you do start thinking about retirement, it’s important to talk to the professionals about retirement planning Melbourne.
However, if you’re prepared to adopt a different approach to others you may be able to save for an early retirement, you just need to be a little radical in your approach:
- Lower The Temperature
You’ve probably been advised to turn the thermostat down by one degree in order to save money. However, try turning it down 10-15 degrees, basically as low as you can before you start to shiver. You can save in excess of $150 per month, that’s a sizeable amount over the course of a year and, with compound interest, can be a huge sum in just 20 years.
- Reducing Grocery Shopping
Everyone would like to reduce their grocery bill but, it often seems to stay the same no matter what you do.
However, you can set yourself a monthly limit of $100 and withdraw it in cash at the start of the month. Supplement this by collecting every coupon you can find and using them, you’ll be surprised at how well you can still eat and it will have saved you a significant sum of money.
But, be aware, this is a time-consuming pass time.
- Apartment Sharing
As much as you’d like to own your own place or even just rent your own place, earning enough to do so doesn’t mean that’s what you should do!
Instead rent a place with a friend and you’ll pay save in the region of $500 per month, that’s a substantial amount to add to your retirement fund.
- Work More Than One Job
This is a debatable one but certainly one of the craziest ideas. Instead of working your regular job and enjoying the reasonable pay, think about taking on extra jobs. You’ll dramatically increase your earnings if you do early morning cleaning and evening pizza delivery, alongside your day job. Plus, you won’t have the time to spend what you’re earning, allowing you to save more.
- Renting Your Home
If you’ve managed to purchase a home already then consider renting out your rooms. Choose the smallest bedroom for yourself in order to maximize the earnings you can get from people renting your other rooms.
It may feel like you’re a stranger in your own home but it’s a very effective way of earning extra money and building your nest egg.
However, you should remember that you don’t know what the future will hold, saving for retirement is a good idea, but moderation is the key, you should be enjoying life today as well.